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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

Answer ID : 76567

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