The Usurious Loans Act, 1918
Bare Act
(1) Notwithstanding anything in the Usury Laws Repeal Act, 1855 (28 of 1855), where, in any suit to which this Act applies, whether heard ex parte or otherwise, the Court has reason to believe,
- that the interest is excessive; and
- that the transaction was, as between the parties thereto, substantially unfair,
the Court may exercise all or any of the following powers, namely, may,
- re-open the transaction, take an account between the parties, and relieve the debtor of all liability in respect of any excessive interest;
- notwithstanding any agreement, purporting to close previous dealings and
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Simplified Act
Simplified Explanation of Section 3 of The Usurious Loans Act, 1918
(1) Even though the Usury Laws Repeal Act of 1855 exists, if a court, during any lawsuit where this Act is relevant, thinks that:
- the interest charged on a loan is too high; and
- the deal wasn't fair to the people involved,
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