Question ID :
38144
Finance business
A partnership firm wants to start Lending business. I.e Giving Loans to Individuals/business Concerns and earning Interest. Whether it can start such business as a Partnership Concern and Whether It will have to get registered with RBI.
Posted by
Mahesh Kumar
on
May 14, 2019
Filed Under
CORPORATE & OTHER LAWS
There is no restriction on a partnership firm under the Partnership Act or any other law to give loan unless specifically provided otherwise in the Deed of Partnership. But the loan should not be given in Cash mode nor be repaid in cash.
Yes RBI permission is required or public dealing
Posted by
CA. BISHT RAKESH on
May 14, 2019
Answer ID :
76569
No registration with RBI required but may require registration under Money lenders Act of the state concerned.
Posted by
SIVADAS CHETTOOR on
May 15, 2019
Answer ID :
76576
Partnership firm can start money lending business. No registration with RBI required. But if 70% of total income is from money lending business, licence for money lending under respective state Act is compulsory. Consequences of not obtaining such licence are penalty with imprisonment.
Posted by
CA. chunauti dholakia on
May 15, 2019
Answer ID :
76636
yes,All most all states have a Money lenders Act to control money lending business. Comply with the requirements of that statute.
Posted by
CA. VENKITARAMAN K V on
May 25, 2019