Overview:
- A money lender is someone who lends small amounts of money at a higher rate of interest. The reason for charging higher rates of interest is that the money lender faces a higher risk of default than normal banks due to various reasons.
- People who are desperately in need of money but at the same time do not have a bank account, people with bad credit histories and those who can’t get money from friends or relatives approach a money lender for credit facilities.
- In India, money lenders are governed by the Money Lenders Act in different states. The Tamil Nadu Government controls the money lending process in accordance with the Money Lenders Act, 1957. It is mandatory for every money lender to have a license.
- There are a few factors that they take into consideration while issuing/ renewal/ endorsement of a license:
- Whether the person has the competency to run a money lending business.
- Whether the applicant’s premise is an apt place to run the business.
- Whether granting the permission would be against the public interest.
Documents required:
- Form A application form
- Passport size photo
- 3 specimen signatures mentioning the money lender’s name or his nominee.
Documents needed for online:
- Residence proof
- Solvency certificate of the applicant
- Shop address proof
- Patta/ chitta
- Challan
- Form A
Procedure:
- Visit Tahsildar office
- The applicant has to pay a fee of Rs.100 to receive the application form from Tahsildar.
- Enter the details in the form
- Submission of form
- Online: Log in to TNESEVAI portal https://www.tnesevai.tn.gov.in/Citizen/where you can apply for a money lender license online.
- Log in or sign up and click the revenue department. A list of applications will appear. Click the money lender license. Register for CAN number and after OTP verification click proceed.
- Fill all the details and upload the documents.
- Download self declaration of applicant, and should be signed and upload the same in the portal.
- Payment of Rs. 60 to be made.
The applicant could download the money lender license from the web. Go to status check and download the document.