The Hindu Business Line : AP: Bill to regulate money lending

HAVING determined that private lending is the prime source of distress in rural economy, the State Government has decided to bring a Bill to regulate the private money lending system.

The draft Bill is being studied by a Group of Ministers comprising Mr K. Rosaiah, Finance Minister, and some other senior Ministers.

"The comprehensive Bill seeks to keep tabs on moneylenders," said Dr V.P. Jauhari, Special Chief Secretary (Revenue).

Speaking to newspersons on Thursday, Dr Jauhari said that the draft Bill suggested that the upper limit for the rate of interest should be 12 per cent.

It also recommended that all moneylenders should register themselves and get a licence to carry on their lending business.

Giving a general idea on how farmers source their finances, he said that 60 per cent of total lending was from private lenders.

Commercial banks accounted for 20 per cent, co-operative bodies 12 per cent, and the rest came from input providers.

This reflected the role played by the lenders.

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AP: Bill to regulate money lending