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Moneylender
 

 

One of those persons whose business is lending money. They are bound by strict regulations, inter alia, that they: (1) must not carry on business except in their own names, (2) must hold a moneylender's certificate and annual Excise licence, and (3) must not charge compound interest.

Rates of interest may vary, but a court may not allow recovery of interest that it considers excessive. A rate of interest over 48 per cent is prima facie excessive. Moneylending contracts and securities relating to them are unenforceable unless a note in writing is made and signed personally by the borrower. The note must be made before the loan. It must include the date, the amount of the loan and the rate of interest.

Reference: The Penguin Business Dictionary, 3rd edt.