PREVIOUS
✖
Coercive recovery of micro-loans
June 18 , 2025
9 hrs 0 min
23
0
- The Tamilnadu State government has notified the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025.
- It aims to prevent coercive recovery of micro-loans by money-lending entities.
- The Assembly has passed the legislation in April, and it received the Governor’s assent on June 9.
- The Act is aimed at protecting the weaker and vulnerable groups and individuals - especially farmers, women, and self-help groups.
- It will be protecting from the coercive recovery of loans by money-lending entities such as the micro-finance institutions and money-lending agencies operating in Tamil Nadu.
- The provisions of the Act relating to coercive action against the borrower shall apply to the non-banking financial companies registered with the RBI and co-operative banks and societies.
- The Micro-loan means a loan given to a household having an annual household income of up to ₹3 lakh.
- A household means an individual family unit including the husband, wife, and their unmarried son and daughter.
- Borrower means an individual or group of individuals or a self-help group or joint liability group.
- Section 20 of the Act also lists what constitutes coercive action.
Leave a Reply
Your Comment is awaiting moderation.