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NBFC Advisor

Money Lender License Service

Money Lender License
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A money lender is an individual or business that lends small amounts of money at higher interest rates compared to banks. Due to the high risk of default, these lenders charge higher rates. Individuals who are in urgent need of money but lack access to bank credit, have poor credit histories, or cannot borrow from friends or family often turn to money lenders for financial assistance.

In India, money lending is regulated by the Money Lenders Act, which varies by state. In Tamil Nadu, the process is governed by the Money Lenders Act, 1957. It is mandatory for all money lenders to obtain a license. Here, we outline the procedure for obtaining a money lender license in Tamil Nadu.

Factors Considered for Issuing a License

The license is typically granted by the Revenue Department within 3 to 4 months of the application submission. The license is valid for one year. The following factors are considered during the issuance, renewal, or endorsement of a license:

  • Competency: The applicant must demonstrate the ability to run a money lending business.
  • Premises: The location of the business must be appropriate for its operation.
  • Public Interest: The license should not be granted if it is against the public interest.

Required Documents

To apply for a money lender license, the following documents are necessary:

  • Form A Application Form: Properly filled out.
  • Passport Size Photographs: Recent photos of the applicant.
  • Specimen Signatures: Three specimen signatures of the money lender or their nominee.

Application Process

Follow these steps to obtain a money lender license in Tamil Nadu:

Step 1: Visit the Tahsildar Office

Visit your nearest Tahsildar office to initiate the application process.

Step 2: Receive the Application Form

Pay a fee of Rs. 100 to receive the application form from the Tahsildar.

Step 3: Enter the Details

Fill in the required details on the application form accurately.

Step 4: Submit the Form

Submit the completed form back to the Tahsildar’s office.

Contact Us

For further assistance with obtaining a money lender license or any queries regarding the application process, please contact us.

We are here to guide you through each step and ensure a smooth application process for your money lending business.

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