Money Lending Licence - State-wise

Overview

A Money Lending Licence is issued by the state government (District Collector, Tehsildar, or Sub-Divisional Magistrate) to individuals and entities engaged in the business of lending money at interest. While the RBI regulates NBFCs (which also lend money), the state Money Lending Acts apply to informal money lenders, chit fund operators, pawn brokers, and small lending businesses that are not registered as NBFCs.

States with Money Lending Acts include Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Rajasthan, Madhya Pradesh, and others. The licence is typically renewed annually and specifies the maximum rate of interest permitted. Non-licensed money lending attracts criminal prosecution under the respective state Act — penalties include imprisonment and fines. MFiling assists with money lending licence applications across all applicable states, including documentation, affidavit preparation, and government fee payment.

Government fees vary by state and loan amount threshold (typically Rs.500–5,000). Processing time: 15–45 working days. MFiling professional charges: from Rs.9,999.

Key Benefits

Documents Required

How it Works

Frequently Asked Questions