The Usurious Loans Act, 1918
Bare Act
In this Act, unless there is anything repugnant in the subject or context,
- "Interest" means rate of interest and includes the return to be made over and above what was actually lent, whether the same is charged or sought to be recovered specifically by way of interest or otherwise.
- "Loan" means a loan whether of money or in kind and includes any transaction which is, in the opinion of the Court, in substance a loan.
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"Suit to which this Act applies" means any suit
- for the recovery of a loan made after the commencement of this Act;
- for the enforcement of any security taken or any agreement, whether by way of settlement of account or otherwise, made, after the commencement of this Act, in respect of any loan made either before or after the commencement of this Act;
- for the redemption of any security given after the commencement of this Act in respect of any loan made either before or after the commencement of this Act.
Simplified Act
This law is about lending and borrowing. Here's what some terms mean:
- "Interest" is the extra amount paid back in addition to the original amount borrowed. It includes any kind of return on the loan, not just what's typically called interest.
- "Loan" refers to any money or goods that are borrowed. It also covers any deal that, even if it doesn't look like a typical loan, the court decides is really a loan at heart.
- "Suit to which this Act applies" means any court case about:
- Getting back money lent after this law started.
- Making someone follow through on a promise or a deal about a loan made after this law started, whether the loan itself was made before or after the law.
- Taking back something that was offered as security for a loan made at any time after this law was in place.
