and lend money to the poorer classes to a small extent, 

 though the terms exacted by them are harder than those 

 exacted by other classes of money-lenders. They do a large 

 business in the way of lending large sums to zemindars and 

 other big landholders and make an enormous profit. 



The terms and conditions of money loans differ in differ- 

 ent districts. 12 per cent, is the usual rate of interest for 

 loans amounting to between Rs. 100 and Rs. 500; for loans 

 between Rs. 500 and Rs. 1,000 it varies from 12 to 9 per 

 cent., and for loans above Rs. 1,000 between 9 and 6 per 

 cent., the rate of interest diminishing as the amount of the 

 loan increases. On the other hand, for loans below Rs. 100 

 the rate of interest ranges between 12 and 18 per cent., 

 the rate increasing as the amount of the loan diminishes. 

 These are the most usual rates, ^" but in exceptional cases 

 and for large amounts the rate of interest is occasionally less 

 than 6 per cent. In the case of small sums when the security 

 offered is insufficient and the risk in recovering the loan 

 great, the rate of interest is even higher than 18 per cent. 

 Sometimes it is stipulated that when there is failure in 

 payment of the loan together with the usual interest at the 

 appointed time, and the solvency of the debtor becomes 

 doubtful, a higher rate of interest shall be paid from the date 

 of default. This condition is not, however, generally enforced 

 except when the money has to be recovered by resort to 

 the courts. Loans on mortgages of value of Rs. 100 and 

 upwarfls amounted in 1891-92 to 5*85 crores of rupees and 

 loans on mortgages of value less than Rs. 100 to 82 lakhs or 

 about one-seventh of the former, the average amount "'^ of a 

 loan in the first case being Rs. 313, and in the second, Rs. 

 44. Loans on simple bonds registered averaged in value Rs. 

 200. Taking all transactions together, the average rate of 

 interest may, therefore, roughly speaking, be estimated at 12 

 per cent. 



The transactions between money-lenders and ryots, espe- 

 cially in the districts subject to drought, are usually of the 

 following description. The poorer ryots open an account 

 with a money-lender who is generally a well-to-do ryot or 

 Komati trader, and obtain from him small sums of money or 

 food grain or seed grain during the cultivation season, June or 

 July, on condition that the advance is to be repaid in grain 

 after the next harvest with an addition which varies from 

 12^ to 50 per cent., the most usual rate being 25 per cent. 

 « — — — — 



"' For particulars vide statement printed as appendix VI. -C. (2). 

 "» Do. do. VI.-C. (3). 



