Maximum rate of Interest allowed in India

Matter of taking money on loan and repaying with interest is a normal practice in India and also in rest of the world. But rate of interest plays very important role in deciding if deal is fair or not. If debtor refuses to pay the loan then we feel that court need to direct police to make debtor repay the loan but at the same time think that if debtor feel that he is being charged exorbitant interest then court should not interfere in deal of two persons entered by their own wish. Why should government interfere if debtor refuses to repay the loan and keep silent when creditor is exploiting the debtor?

Government need to protect both creditor and debtor. The government needs to make sure that debtors repay their loans and at the same time fix a maximum rate of interest which can be charged to debtor so that debtors are not exploited. In India various state governments have enacted laws to regulate maximum rate of interest but still very few people are aware of existence of such regulation and current maximum rate of interest allowed by law. Here I would like to discuss various laws governing loans and interests in India.

THE USURIOUS LOANS ACT, 1918 declared that no farmer - debtor was liable to pay by way of interest an amount exceeding principal of the loan.

It means that no person can be forced to pay interest more than principal over the full tenure of the loan.

Karnataka and Kerala states have enacted their own laws to govern maximum rate of interest allowed. Other states also have similar laws.  These acts says that maximum rate of interest will be notified by government from time to time but our people sitting in media are themselves involved in business of giving loans on exorbitant interest so they never report maximum rate of interest allowed as per law. As per latest information received by me maximum rate of interests allowed is 2% per month.

1. THE KARNATAKA PROHIBITION OF CHARGING EXORBITANT INTEREST ACT 2004 (http://dpal.kar.nic.in/pdf_files/14%20of%202004%20%28E%29.pdf) 
2. THE KERALA PROHIBITION OF CHARGING EXORBITANT INTEREST BILL, 2012 (http://niyamasabha.org/bills/13kla/published/114-pub-eng.pdf)
3. The Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Rules 2010 (http://apmfi.cgg.gov.in/downloads/2010PR_MS356.PDF)
4. National Consumer Dispute Redressal Forum Case (http://ncdrc.nic.in/CC512007.html)

Origion of Female foeticide in India

Now a day media is portraying Indian society in wrong light by saying that in India and particularly rural India it their culture to kill new born female child. It is totally untrue. In fact no one ever kill their daughter in a history of last 2000 years. It is a false propaganda done against Indian society.

The problem of decline of female population started in 1975 when Sanjay Gandhi started population control program and abortion which mean killing the unborn baby was projected as a very acceptable way of population control and people going for abortion were rewarded cash prize for getting their child aborted. Any people who said that killing their unborn child was a sin was termed a backward and illiterate.

It was projected that unborn child was not alive in first 3 months of pregnancy and getting the child aborted in first three months months is not a sin and should be encouraged. When this thinking started setting into mind of general public the inhibition against killing unborn babies went away. When the invention of determining sex of unborn baby came in market people started using it. The inhibition of killing unborn babies was already removed by government's aggressive campaigning in favor of abortion. The people who did not want a girl child because they already had a girl child or otherwise, started using sex determination test and abortion for killing unborn girls.

The problem of decreasing female population was created by government's aggressive campaign in favor of abortion. The problem still does not exist in rural India which is out of reach of government’s campaigns. The problem exists in educated people who are influenced by government advertisements.

The solution to this problem lies in understanding the root cause of the problem. The root cause is that people don't feel anything bad in killing their unborn babies and this thinking was created by government's campaign. This campaign is still continuing. This is only aggravating the problem and not solving anything. 

 

 

People's bias toward Mayavati v/s Akhilesh Yadav

For last one month I am seeing 8 LCD screens 4 on each pillar at UP Gate on NH-24. Each LCD must have costed 50,000 rupee so money spent on these LCD screen is at least 4 Lakhs. These LCD screens are being used to show UP's CM Akhilesh Yadav's photo. Mayavati on the other hand constructed her status at some places in UP.

In last one month I have not heard even a single person calling Akhilesh Yadav self-centered and criticizing waste of money by Akhilesh Yadav. I know people who used to take out at least half an hour daily to criticize Mayavati for her self-centered attitude and waste of money on statues (not only Mayavati's but B. R. Ambedkar also). These people are surprisingly silent about waste of money by Akhilesh Yadav. Does it have something to do with fact that Mayavati is a Dalit and Akhilesh Yadav is an Upper caste? I think that caste of Akhilesh Yadav and Mayavati and people's reaction are related. If it is so then why should I expect Dalit's not have bias towards Mayavati when upper caste people are having bias against Mayavati?