Section 27 in The Rajasthan Money-Lenders Act, 1963
27. [ Maximum amount of interest recoverable on loans and discharge of loans in certain cases. [Substituted by Rajasthan Act No. 13 of 1976.]
(1)No money-lender shall recover towards the interest in respect of any loan advance by him, an amount in excess of the amount of principal.(2)Any loan in respect of which the money-lender has realised from the debtor an amount equal to or more than twice the amount of the principal, shall stand discharged and the amount, if any, so realised in excess of twice the amount of the loan shall be refunded by the money-lender to the debtor:Provided that no refund shall be made if such excess amount had been realised prior to three years from the date of commencement of the Rajasthan Money-lenders (Amendment) Act, 1976.]
