Section 16 in Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Rules, 2011
16. Discharge of certain loans.
(1)Based on the database submitted by Micro Finance Institutions registered under these Rules, each Registering Authority shall, identify such loans where the interest paid has exceeded the principal borrowed, and issue a direction in Form 6 for discharge of such loans and for return of such interest portion that exceed the principal amount to the borrower.(2)Any attempt to recover these loans discharged in the above manner shall be an offence under Section 18 of the Act and the Registration of such Micro Finance Institutions is liable for cancellation as per Section 5 of the Act.
