Section 7 in Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2011
7. MFIs not to seek security for loan.
- No MFI shall seek any security from a borrower by way of pawn, pledge or other security for the loan:Provided that any such security obtained from a borrower before the commencement of this Act shall forthwith stand released in favour of the borrower.
