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State of Gujarat - Section

Section 26 in The Bombay Money Lenders Act, 1946

26. Prohibition of charge for expenses on loans by money-lenders.

- No moneylender shall receive from a debtor or intending debtor any sum other than reasonable costs of investigating title to the property, costs of stamp, registration of documents and other usual out-of-pocket expenses in cases where an agreement between the parties includes a stipulation that property is to be given as security or by way of mortgage and where both parties have agreed to such costs and reimbursement thereof or where such costs, charges or expenses are leviable under the provisions of the Transfer of Property Act, 1882 (IV of 1882), or any other law for the time being in force.