- The [State] [This word was substituted for the word 'Provincial' by the Adaptation of Laws Order, 1950.] Government may from time by a notification in the Official Gazette fix the maximum rates of interest for any local area or class of business of money-lending in respect of secured and unsecured loans;[* * *] [This proviso was deleted by Bombay 13 of 1951, Section 11.](1A)[ No money-lender shall receive from a debtor or intending debtor any sum by way of compound interest on a loan advanced or intended to be advanced or any sum by way of interest at a rate higher than the rate fixed under sub-section (1) for any default committed by the debtor in payment of the sums on due date in accordance with the terms on which the loan is granted:Provided that the money-lender, in case of such default, may charge simple interest at a rate not exceeding the rate payable in respect of the principal on the sums due in respect of the period commencing on the date on which they become due for payment and ending on the date on which they are actually paid.] [Sub-section (1A) was inserted by Maharashtra 76 of 1975, Section 13(a).](2)Notwithstanding anything contained in any law for the time being in force, no agreement between a money-lender and a debtor for payment of interest at rates exceeding the maximum rates fixed by the [State] [The word 'bank' was deleted by Bombay 13 of 1951, Section 10.] Government under sub-section (1) [and no agreement in contravention of the provisions of sub-section (1A) shall be valid.] [This portion was substituted for the portion beginning with 'shall be valid' and ending with 'exceeding the said rates' by Maharashtra 76 of 1975, Section 13(b).](3)[ [If any money-lender or a person advancing a loan specified in sub-clause (g) of clause (9) of section 2 makes an oral or written demand or charges or receives] [Sub-section (3) was added by Bombay 57 of 1949, Section 4.] from a debtor interest at rate exceeding the maximum rate fixed by the [State] [This word was substituted for the word 'Provincial' by the Adaptation of Laws Order, 1950.] Government under sub-section (1) he shall, for the purposes of section 34, be deemed to have contravened the provisions of this Act.]
