Regulation of Money Lending Rules 2011 – Andhra Pradesh Micro Finance Institutions


3. Application for Registration: –

 (1) Every Micro Finance Institution operating in the State as on the date of the commencement of the Act shall, apply to the respective Registering Authorities in rural  and  urban  areas  seeking  Registration  in  Form-I  furnishing  the  details. Provided that Micro Finance Institution operating in more than one District shall file separate applications for Registration in each District.

4. Verification by the Registering Authority:

(1) The Registering Authority shall verify whether the details submitted by the Micro Finance Institution are in accordance with the requirements of rule 3 or not.

(2) In case, the application is not in accordance with the requirements of rule 3, it shall be returned for rectification duly stating the reasons for the same.

(3) If the application is in accordance with the requirements of rule 3, the same shall be published in the village/municipal ward at the office of the Village Organization / the Slum Level Federation, for information and to get feed-back, if any.

5. Consequences of furnishing incorrect information: If any of the information furnished in Form – 1 is found to be incorrect, the Registering Authority shall also launch prosecution under the relevant provisions of the Indian penal Code, 1860.

6. Undertaking to be given  by Micro  Finance Institution  before according Registration: Every Micro Finance Institution shall give an undertaking in Form-2 signed by the Chief Executive Officer or a person of equivalent designation of the Micro Finance Institution.

7. Time limit for Registration: If all the details furnished by the Micro Finance Institution are in accordance with the requirements of rules 3 and 6, Registration in Form – 3 shall be issued within seven working days from the date of submission of Form-1 and Form – 2.

8. Renewal of Registration:

(1) Every Micro Finance Institution registered as stated above and desirous of continuing operation of money lending after completion of the one year period, shall apply for renewal of Registration as per the provisions of sub-section (4) of Section

3 of the Act in Form – 4 listing therein name-wise details of the borrowers along with the purpose for which loan has been given and the interest rate charged.

(2) Every application for renewal shall be verified by the Registering Authority by publishing the relevant details in the villages/wards through the Village Organisation or Slum Level Federation or any other person or agency authorised by the Registering Authority inviting objections if any, for such renewal within such date as shall be specified

(3) All objections received from the Self Help Groups or the Village Organisations or the Slum Level Federations, shall be got verified by the Registering Authority to satisfy  himself  about  the  compliance  of  the  Micro  Finance  Institution  to  the provisions of the Act and these rules.

(4) If any of the details furnished by the Micro Finance Institution in the application filed for renewal, either based on the verification done by the Registering Authority or based on complaints received from public, are found to be incorrect, or if the Micro Finance Institution is found to have violated any of the conditions of the Act, the Registering Authority shall refuse renewal in writing stating the reasons therein

(5) The Registering Authority shall also launch prosecution under the relevant provisions  of  the  Indian  Penal  Code,  1860  in  all  cases  of  furnishing  false information.

9. Register of Micro Finance Institutions operating in a district:

(1) Each Registering Authority shall maintain the list of Micro Finance Institutions registered in the district in Form – 5, which shall be available for inspection by general public during the office hours.

(2) The relevant particulars of the Form – 5 concerning the Gram Panchayat or the slum area shall be published at least twice a year on the notice board of the concerned Gram Panchayat or the Ward Office concerned, apart from exhibiting them on the website.

10. Cancellation of the Registration:

(1) The Registering Authority shall cancel the Registration accorded to a Micro Finance Institution on violation of any condition of the Act, or any of these Rules or any clauses of the points of the Undertaking submitted in Form – 2, or on any complaint filed and found to be valid under section 14, or suo  moto  under  section

5 (1), including the following:

(a) Charging of rates of interest higher than what has been stated in the application for registration.

(b) Attempt to recover any money not permitted under the Act or under these rules on the loans given.

(c) Operating in areas not specifically permitted in the Registration.

(2) Before passing an order for cancellation of the Registration, the Registering Authority shall cause a notice to be served upon the Micro Finance Institution, requiring it to show cause within fifteen days from the date of service of such notice as to why its registration should not be cancelled.

(3) The Registering Authority shall, if the Micro Finance Institution files objections before the date fixed in the notice, after considering the same and if the Micro Finance Institution does not file objections before the date fixed, than after the said date, pass an Order in accordance with the Act, which shall be communicated to the Micro Finance Institution.

11. Suspension of Registration:

(1) In case of commission of offences under section 11(7) and section 16 of the Act, the Registering Authority can issue an order for suspension of the Registration pending enquiry after recording the reasons for such suspension which shall be communicated to the Micro Finance Institution.

(2) Every suspension of Registration shall immediately be followed by a notice under Rule 10 (2) and the enquiry shall be completed within 15 days from the date of receipt of explanation of such Micro Finance Institution.

12. Effect of cancellation or non-renewal of Registration: In case of cancellation of registration as per rule 10 or non-renewal of registration as per rule 8 (4), such Micro Finance Institution shall not extend any fresh loans to the borrowers, but will be entitled to recover the dues of the subsisting loans subject to following the provisions of section 16 of the Act.

 

13. No dual membership:

(1) No member of a Self Help Group shall be a member of another Self Help Group or any group formed by any Micro Finance Institution.

(2) For this purpose, each Registering Authority shall maintain a complete and updated database of the all Self Help Group members and the list of borrowers furnished by the Micro Finance Institutions operating in the district.

14. Disclosure of interest rates:

(1) All Micro Finance Institutions registered under this Act shall display the effective interest rates being charged on the loans given by them prominently in all their offices; and the same shall be furnished to the borrowers in writing.

(2) Non-display of the effective rate of interest shall be an offence punishable under section 18 of the Act.

15. All Charges to be subsumed under interest only:

(1)  No  Micro  Finance  Institution  shall  levy  any charge  or  impose  any cost  by whatever name called, on the borrowers except the interest rate as disclosed in the letter granting the loan and as reported in the Form – 1 and in Form – 4.

(2) No Micro Finance Institution can collect any amounts not being a part of the interest rate and any such collection is a violation under section 8 (2) of the Act punishable under section 18.

16. Discharge of certain loans:

(1) Based on the database submitted by Micro Finance Institutions registered under these Rules, each Registering Authority shall, identify such loans where the interest paid has exceeded the principal borrowed, and issue a direction in Form – 6 for discharge of such loans and for return of such interest portion that exceed the principal amount to the borrower.

(2) Any attempt to recover these loans discharged in the above manner shall be an offence under section 18 of the Act and the Registration of such Micro Finance Institutions is liable for cancellation as per section 5 of the Act.

17. Procedure to be adopted in case of excess recovery:-

(1) Every Registering Authority, on any complaint of excess recovery of the loan by the Micro Finance Institution or in cases where the interest exceeded the principal amount, shall cause notice to be served upon the said Micro Finance Institution, fixing a date requiring the Micro Finance Institution to show cause why the Registration should not be suspended or cancelled or renewal thereof be prohibited for the said contravention

(2) The Registering Authority shall consider the explanation filed if any, received before the last date stated in the notice, and pass order for refund of such excess money to the borrower.

(3) Non-implementation of the Order passed in accordance with section 9 of the Act shall be an offence punishable under section 18 of the Act.

18. Procedure in case Micro Finance Institution wants to advance loan to a Self Help Group member:- (1) Micro Finance Institution proposing to advance loan to a Self Help Group or its member already having an outstanding loan taken from any Bank through the Self Help Group, shall apply for prior approval in Form-7 giving details of the member of the Self Help Group as provided in section 10 (2) of the Act.

Provided that any advance of loan to family member of the Self Help Group woman by the Micro Finance Institution after the  Act  is deemed  to be a  loan advanced to Self Help Group woman by the Micro Finance Institution. Any violation of this rule by Micro Finance Institution is  violation of the Act.

(2) The Registering Authority or any person or Agency authorised by him shall verify the details within the time limits laid down in the Act; and conduct such verification with the Self Help Group to satisfy himself that the purpose for which the loan is proposed would generate additional income needed to service the loan.

(3) Every permission granted under section 10 (3) of the Act shall be in Form – 8.

19.  Granting multiple  loans to be  an  offence: Any Micro  Finance Institution granting a loan to any Self Help Group or its members having an outstanding loan except as provided in section 10 shall be liable for punishment under section 18 of the Act.

20. Manner, form and format of the loan: –

(1) The loan contracted between a borrower and the Micro Finance Institution shall be repayable in the manner as laid down below:

(a) The repayment of the loan shall be on a periodicity which shall not be less than one month.

(b) The interest shall be calculated on diminishing balances.

(c) The equated installments calculated in the above manner shall be intimated along  with  all  other  terms  and  conditions  of  the  loan  and  shall  be  duly acknowledged by the borrower.

(2) The letter sanctioning the loan shall be in Form – 9.

21.  Issue  of  receipts  for  the  repayments:  Every  payment  received  from  a borrower shall be duly acknowledged by issuing a written receipt and a copy of the same shall be available in the records of the Micro Finance Institution.

22. Furnishing statement of account to the borrower:- The Micro Finance Institution shall deliver a copy of the statement of account on demand free of cost to the borrower.

23. Place of collecting repayments in urban area: No Micro Finance Institution shall collect repayment of the installment due in urban areas except in a public place like office of Slum level Federation or ward office

24. Micro Finance Institution not to employ recovery agents:

(1) No Micro Finance Institution shall employ any recovery agent for recovery of the loans except the employees named in the Form-1 filed at the time of Registration.

(2) For the purpose of this Rule, any person who is not named in Form 1 but effecting  recoveries  shall  be  treated  as  recovery  agent;  and  Micro  Finance Institution responsible for such collection shall be liable for action under section 18 of the Act.

25. Monthly Statement by Micro Finance Institution to Registering Authority :

(1) The monthly Statement as per section 12 of the Act shall be in Form-10 of these rules  and  shall  contain  all  the  loans  granted  and  recoveries  made  during  the previous month.

(2) Non submission of Form-10 shall be an offence punishable under section 18 of the Act.

26. Procedure for summoning Witnesses and requiring production of documents: – For the purposes of implementing the provisions of the Act, the Registering Authority shall have the same powers with regard to summoning of Witnesses, requiring production of documents, recording evidence and other proceedings as are provided under the Code of Civil Procedure, 1908 and the provisions of the Code of Criminal Procedure 1973.

27. Power to search and seizure:

(1) The Registering Authority or any other officer authorised by him can conduct the search of such premises and seize such records as required under section 13 of the Act.

(2) The Registering Authority or any other officer authorised by him can summon the representative of the Micro Finance Institution located in the district by issuing summons as per Form-11.

28. Complaints:

(1) Every complaint under Section 14 of the Act shall be either in writing before the Registering Authority or by using the Toll Free telephone provided for this purpose.

(2) All complaints registered shall be enquired into by the Registering Authority or an officer authorised by him within seven days from the date of receipt of the complaint.

(3) If, after due enquiry into the complaint, the Registering Authority is satisfied that there is sufficient evidence of violation of the provisions of the Act,  he shall, issue a show cause notice to the Micro Finance Institution in Form – 12 and take action under Rule 10.

29. Prosecution of cases:

(1) In case of any offence committed under sections 16 and 17 of the Act, the Officer in charge of the Police Station under whose jurisdiction the offence has occurred shall register the case either on complaint or suo moto and proceed in accordance with the provisions of the Code of Criminal Procedure, 1973.

(2) The progress of investigation and prosecution in all such cases shall be reported to the Registering Authority on a monthly basis

The Commissioner of Printing, Stationery and Stores Purchase (Printing Wing) Hyderabad is requested to publish the above  notification in the Extraordinary issue of the Andhra Pradesh Gazette, and furnish 1000 copies of the Notification to Government in Panchayat Raj and Rural Development (RD.III) Department immediately

Format for application for registration

1. Name of the Micro Finance Institution / Organization :

2. Nature of the Organization : (Company/Partnership Firm/Society/NBFC/ Co-Operative Society/Money Lender/HUF/ Proprietary Firm / Others Specify)

B. Details of incorporation

1. Whether Incorporated or not :

2. Date of incorporation:

3. Place of Incorporation:

4. Reference number of Incorporation:

5. Present Address of the registered office:

6. Details of persons connected with and responsible For the day-to-day control, business and Management of the Micro Finance Institution:

S No Name

of the person

Designation

Official address

Residential

address

Contact

number

Email address
1 2 3     6 7

C. Details of Organization at District Level

1. New Micro Finance Institution or Existing Micro Finance Institution

2. List of the office(s) of the Micro Finance Institution in the district:

S No Name of

the branch

Office

Address

Name of

the head of the branch operations

Contact

number

Email

address

1 2 3 4 5 6

3. Names and details of employees deployed in the district.

Sl. No. Name Designation Residential

Address

Contact

No.

EPF

Code

Area

allocated for operation

1 2 3 4 5 6 7

 

Sl

. N o.

Name

of the Borro wer / Fathe r/ Husb and

Rati

on Car d No.

Village/War

d/slum

Mandal/

Town

Name

of the Self Help Group belon ging

to

Amo

unt of loan give n

Purp

ose for loan

Amount

realized so far towards

Princip

al

Inter

est

1 2 3 4 5 6 7 8 9 10

 

D. Details of subsisting loans

Number of Installments

for repayment

Periodicity

of payment (Daily/ Weekly/ Fortnightly/ Monthly)

Mode of

compounding of interest

 

((Weekly rest

/ Monthly rest

/ Quarterly rest / Half Yearly rest

/Yearly rest)

Installment

amount

Effective

rate of interest (including interest, insurance and all other charges payable by the borrower)

Total

number

So far paid
11 12 13 14 15 16

 

Sl.No. Village/slum Mandal/Town Name of

the functionary

/supervisor

Name of

the branch of Micro Finance Institution servicing the area

Number of

existing borrowers

1. 2. 3. 4. . 6.

 

E. Area of Operation: Currently operating or assigned to operate during the year

C E R T I F I C A T E

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed.

I understand and agree that if any of the information is found to be false, the organization will be liable for prosecution under provisions of Law.

I request that the Micro Finance Institution may be registered for operation in the district in accordance with the provisions of the Act.

Written undertaking to be submitted by the Chief Executive Officer

I, the Chief Executive Officer of the Micro Finance Institution authorized to sign on behalf of the Micro Finance Institution, hereby give the following undertaking that the  said Micro Finance  Institution  shall at  all times  during the currency of  the Registration shall:

1. Act in conformity with all the provisions of the Act.

2. Not seek any security from a borrower by way of pawn, pledge or other security for the loan.

3. Not levy any hidden charges by any name or in any form, in the name of insurance, application fee, processing fee, recovery fee and the like -except the interest rate duly disclosed to the borrower.

4. Display the rates of interest charged in a conspicuous place in the Registered Office, Head Office and all Branch Offices in bold letters visible to members of the public.

5. Not collect interest in respect of any loans advanced an amount in excess of the principal amount under different names.

6. Not resort to further loaning to an Self Help Group or its members having an outstanding bank loan without prior approval in writing from the Registering Authority.

7. Furnish and update the details of the borrowing Self Help Group group members and other information in manner laid down under these Rules.

8. Not deploy any agents for recovery nor shall use any other coercive action.

9. Maintain the statutory records as per the Act and to cooperate with any officers acting under the provisions of the Act.

10.Not carry out any money lending activity outside the area mentioned in the

Form 1.

11. Not to recover any loan not disclosed in Form 1.

 

C E R T I F I C A T E

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed.

I understand that any violation of any of the above conditions of undertaking will result in cancellation of Registration as laid down in the Act and the Rules.

 

Office of the Registering Authority            District

under the AP Micro Finance Institutions ( Regulation of Money lending ) Rules,

2011

Registration of a Micro Finance Institution for operation

In accordance with the information furnished by the Micro Finance Institution in the Form I and II, Registration has been accorded to the Micro Finance Institution under the Provisions of A.P. M.F.I. (Regulation of Money Lending) Act, 2011 as per the details stated below:

1.       Name of the Micro Finance Institution:

2.       Registration Number:

3.       Area of operation: Urban/rural

4.       List of villages/wards permitted for operation (enclosed):

5.       Date of issue of Registration:

6.       Date of expiry of the Registration:

This Registration can be cancelled prior to the period of expiry in accordance with the Section 5 of the Act and as laid down in the Rules issued thereunder.

This Registration shall not be transferable or assignable to any other person or

Organisation

Prescribed format for application for renewal of registration

1. Name of the Micro Finance Institution / Organization          :

2. Nature of the Organization                                                   : (Company/Partnership Firm/Society/NBFC/

Co-Operative Society/Money Lender/HUF/ Proprietary Firm / Others Specify)

B. Details of incorporation

1. Whether Incorporated or not :

2. Date of incorporation:

3. Place of Incorporation:

4. Reference number of Incorporation:

5. Present Address of the registered office:

6. Details of persons connected with and responsible For the day-to-day control, business and Management of the Micro Finance Institution:

 

S No Name of

the person

Designation Official

address

Residential

address

Contact

number

Email

address

1 2 3 4   6 7

C. Details of Organization at District Level

1. New Micro Finance Institution or Existing Micro Finance Institution

2. List of the office(s) of the Micro Finance Institution in the district:

S No Name of

the branch

Office

Address

Name of

the head of the branch operations

Contact

number

Email

address

1 2 3 4 5 6

 

3. Names and details of employees deployed in the district.

Sl.No. Name Designation Residential

Address

Contact

No.

EPF

Code

Area

allocated for operation

1 2 3 4   6 7

D. Details of subsisting loans

Sl

. N o.

Name

of the Borro wer / Fathe r/ Husb and

Rati

on Car d No.

Village/War

d/slum

Mandal/

Town

Name

of the Self Help Group belon ging

to

Amo

unt of loan give n

Purp

ose for loan

Amount

realized so far towards

Princip

al

Inte

rest

1 2 3 4 5 6 7 8 9 10

 

D. Details of subsisting loans

Number of Installments

for repayment

Periodicity

of payment (Daily/ Weekly/ Fortnightly/ Monthly)

Mode of

compoundin g of interest

 

((Weekly rest

/ Monthly rest / Quarterly rest / Half Yearly rest

/Yearly rest)

Installm

ent amount

Effective rate of

interest (including interest, insurance and all other

charges payable by the borrower)

Total

number

So far paid
11 12 13 14 15 16

 

Sl.No. Village/slum Mandal/Town Name of the

functionary

/supervisor

Name of the branch

of Micro Finance Institution servicing the area

Number of existing

borrowers

1. 2. 3. 4. . 6.

 

E. Area of Operation: Currently operating or assigned to operate during the year

C E R T I F I C A T E

 

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed.

I understand and agree that if any of the information is found to be false, the organization will be liable for prosecution under provisions of Law.

I request that the Registration of the Micro Finance Institution may be extended for a further period of one year for operation in the district in accordance with the provisions of the Act

Form 4 A

Written undertaking to be submitted by the Chief Executive Officer

 I, the Chief Executive Officer of the Micro Finance Institution authorized to sign on behalf of the Micro Finance Institution, hereby give the following undertaking that the said Micro Finance Institution shall at all times during the currency of the Registration shall:

1. Act in conformity with all the provisions of the Act.

2. Not seek any security from a borrower by way of pawn, pledge or other security for the loan.

3. Not levy any hidden charges by any name or in any form, in the name of insurance, application fee, processing fee, recovery fee and the like -except the interest rate duly disclosed to the borrower.

4. Display the rates of interest charged in a conspicuous place in the Registered Office, Head Office and all Branch Offices in bold letters visible to members of the public.

5. Not collect interest in respect of any loans advanced an amount in excess of the principal amount under different names.

6. Not resort to further loaning to an Self Help Group or its members having an outstanding bank loan without prior approval in writing from the Registering Authority.

7. Furnish and update the details of the borrowing Self Help Group group members and other information in manner laid down under these Rules.

8. Not deploy any agents for recovery nor shall use any other coercive action.

9. Maintain the statutory records as per the Act and to cooperate with any officers acting under the provisions of the Act.

10.Not carry out any money lending activity outside the area mentioned in the Form

1. 11. Not to recover any loan not disclosed in Form 1.

C E R T I F I C A T E

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed.

I understand that any violation of any of the above conditions of undertaking will result in cancellation of Registration as laid down in the Act and the Rules

Register of Micro Finance Institutions Registered to operate in the district

(Rule 9)

 

1. S. No. :

2. Registration No: :

3. Name of the Micro Finance Institution :

4. Incorporation details :

5. Address of the Head office :

6. Address of the Head Office in the District :

7. Area of Operation :

8. Name Micro Finance Institution Employees of the village/slum :

9. No of the loans given in the village/slum :

10.Effective Rate of Interest :

11.Date of Expiry of Registration Certificate:

 

Registering Authorit

 

Discharge of loans

(Rule 16)

Proceedings of the Registering Authority

Present:                 

 

Whereas it has come to the notice of the Registering Authority that (state the name of the Micro Finance Institution) has given a loan to (Name of the borrower) of (Rs. –

Now the interest having exceeded the principal amount, in accordance with the provisions of Section 9 of the Act, the following orders have been issued:

 

1. The loan stated above taken from the said Micro Finance Institution by the said borrower stand discharged and the said Micro Finance Institution shall not recover any further amounts from the borrower.

2.  The  said  Micro  Finance  Institution  shall  return  (Rs.) being the interes

portion that exceeded the principal amount to the borrower within 15 days from the date of this order.

Further the said Micro Finance Institution shall take note that any attempt to recover the loans as discharged in the above manner shall an offence under Section 18 of the Act for which the Registration of the said Micro Finance Institutions would be liable for cancellation as per Section 5 of the Act.

Registering Authority

 

Form – 7 (Rule 18)

Prescribed format to get prior Approval to advance loan to Self Help Group

Member

Name of the Micro Finance Institution :                        Registration Number: Permission may be issued for lending to the Self Help Group members details of

whom  are  furnished  hereunder  for  giving  further  loan  from  the  Micro  Finance

Institution in accordance with Section 10 of the Act:

 

Name of the Borrower & Name of the SHG

woman related to the borrower

 

Name of the Self Help Group

 

Bank from which Loans has been obtained by the Self Help Group

 

Date of the loans granted by the Bank

 

Amount paid to the Self Help Group by the

Bank

 

Amount due from the Self Help Group

 

Fresh amount of loan sought by the Self Help

Group from the Micro Finance Institution

 

Rate of Interest

 

Installment amount

 

Purpose of the loan

 

Periodicity of the loan repayment

 

Total no of installments

 

Anticipated additional monthly income to the member

 

Details of due diligence done

Details of other loans of the

borrowers

 

Name of the Lender

 

Amount Borrowed

 

Date of loan

 

Rate of interest

 

EMI

 

Amount repaid so far

 

Outstanding loans

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed. I understand that any violation of any of the above conditions of undertaking will result in cancellation of Registration as laid down in the Act and the Rules. The Resolution of the Self Help Group has been enclosed in Form-7 A.

Authorised signatory for the Micro Finance Institutio

Form -7 A

Resolution of the Self Help Group

Name of the Self Help Group: Name of the village/slum Name of the Mandal/Town Date:

 

Resolved  that  Smt……………….w/o                         ,  a  member  of  this  group requires loan of (Rs.        _) for (state purpose of the loan). The group has verified and is convinced that the above loan would generate additional income required to service the loan.

 

The …… Micro Finance Institution come forward to advance the above loan at

% of effective interest requiring her to pay an equated installment of Rs._       for (state the number of installments) on a declining balance method. There are no other charges levied on the loan except the above interest.

Hence this group is resolved to recommend the name of the member to get loan from the said Micro Finance Institution.

Signature of the Self Help Group members

 

Grant of Permission for further loan

(Rule 18)

Proceedings of the Registering Authority ————- District,

 

Under the provisions of The AP Micro Finance Institutions (Regulation of money lending ) Rules 2011

 

Having gone through the application of ———Micro Finance Institution for the prior approval for advancing a loan of Rs.                    to Smt ————– of the (state the name   of   the   Self   Help   Group),   —————–village/ward,   ————   —— mandal/town and the resolution passed by the ——– Self Help Group, and after verifying  satisfying myself  of  the  capability  of  the  Self  Help  Group  member  to service the said loan, and also that the further loan will generate additional income to the Self Help Group member, needed for servicing the debt, permission has been accorded to ————–Micro Finance Institution to advance (Rs.            ) as the loan to Smt. ——————- member of the Self Help Group——————.

 

Seal                                                                               Sd/-Registering Authority

 

 

Sanction letter of a loan by Micro Finance Institution

With reference to your application dt… for sanction of loan (state the name of Micro Finance Institution) hereby sanction an amount of Rs.————— loan as per the terms and conditions stated below:

1. Name of the borrower :

2. Amount sanctioned :

3. Date of the sanction :

4. Effective rate of interest (to include all charges) :

5. No of installments :

6. Periodicity of the repayment (monthly/quarterly/half-yearly):

7. Equated instalment amount (Rs)

8. Purpose of the loan :

9. Name and address of the Micro Finance Institution functionary :

Please arrange to return the duplicate copy of this letter duly signed for having accepted the above conditions.

Monthly Statement of Micro Finance Institution for        month

 

Name of the Micro Finance Institution: Address of the Micro Finance Institution:

 

Name of

the borrower

Name of

Self Help

Group

Village

/slum

Mandal/Town Sanctioned

amount

Date of

Sanction

(1) (2) (3) (4) (5) (6)
Purpose of

the loan

Repayment

frequency

Number of

installments

Equated

instalment

Amount so

far repaid

Outstanding
(7) (8) (9) (10) (11) (10)

(rule  27) Summon to witness

(See sections 160,91 CrPC under section 13 of The Andhra Pradesh

Micro Finance Institutions ( Regulation of Money Lending) Act, 2011

To

[Name, description and place of residence.] …………….

 

WHEREAS A complaint has been made before me against the (state the name of the Micro Finance Institution) for violating the provisions of the A.P. Micro Finance Institutions (Regulation of Money Lending ) Act, 2011 and it appears to me that you are likely to give material evidence or to produce any document or other thing for the prosecution;

You  are  hereby  summoned  to  appear  before  the  Registering  Authority  on  the

…………….day of.. …………………next at ten o’clock in the forenoon, to produce such document or thing or to testify what you know concerning the matter of the said complaint., and not to depart thence without leave of the Registering Authority; and you are hereby warned that, if you shall without just excuse neglect or refuse to appear on the said date, a necessary proceedings will be issued to compel your attendance.

Dated this ………………………………….day of……………20……………………

Form – 12 (Rule 10 and 28)

SHOW CAUSE NOTICE TO Micro Finance Institution

(O. 5, R. 3. of CPC r/w Section 5 of the A.P. Micro Finance Institution (Regulation of

Money Lending) Act, 2011)

 

Whereas it has brought to the knowledge of the Registering Authority that the Micro Finance Institution has violated the provisions of the Act, 2011 by indulging in the following acts.

GOVERNMENT OF ANDHRA PRADESH ABSTRACT

The Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Rules 2011 – issued.

————————————————————————————————————— PANCHAYAT RAJ & RURAL DEVELOPMENT (RD-III) DEPARTMENT

 

G.O.Ms.No. 356, PR & RD (RD 1) Dept., Dt.19.10.2010

 

*****

 

ORDER:

 

The following Notification will be published in the Extra Ordinary Issue of the

Andhra Pradesh Gazette dated 28.04.2011.

 

NOTIFICATION

 

In exercise of the powers conferred under sub-section (1) of section 23 of the

Andhra Pradesh Micro Finance Institutions (Regulation of  Money Lending) Act,

2011  (Andhra Pradesh  Act  No.1  of  2011),  and  in  supersession  of  the  Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Rules, 2010 issued in G.O.Ms.No. 356, PR & RD (RD I) Dept. dt. 19.10.2010, the Governor of Andhra Pradesh hereby makes the following rules:

 

RULES

 

1. Short title and commencement:- (1) These rules may be called the Andhra

Pradesh Micro Finance Institutions (Regulation of Money lending) Rules, 2011.

 

(2) These rules shall come into force from the date of publication in the Andhra

Pradesh Gazette.

 

2. Definitions:- In these rules unless the context otherwise requires, –

 

(a) “Effective rate of interest (r)” shall be the effective rate of interest as specified in column (17) of Form – 1.

 

(b) “Forms” means Forms appended to these rules ;

 

(c)  “Act”  means  the  Andhra  Pradesh  Micro  Finance  Institutions  (Regulation  of

Money Lending) Act, 2011.

 

(d) “Pawn” includes Ration Card, any Health Scheme Cards, property title documents, household articles, pension cards, collateral security; or any benefit provided by Government to the borrower.

 

(e) “Slum Level Federation” means and includes federation of Self Help Groups in a slum or habitation facilitated by the Mission for Elimination of Poverty in Municipal Areas (MEPMA).

 

(f) “Village Organization” means and includes federation of all Self Help Groups in a village or habitation facilitated by Society for Elimination of Rural Poverty (SERP)

(g) “Family Member” includes husband, son, daughter, adopted son, adopted daughter, mother, father, father-in-law, mother-in-law, sister-in-law, brother-in-law, grand mother, grand father, son-in-law, daughter-in-law, brother, sister, grand son, grand daughter of the SHG woman who are residing under one roof in the house of the SHG woman.

(h) “Words” and “Expressions” used but not defined in the Act or under these rules shall have the same meaning assigned to them under any other law relevant with the objectives sought to be achieved under the Act.

3. Application for Registration: –

(1) Every Micro Finance Institution operating in the State as on the date of the commencement of the Act shall, apply to the respective Registering Authorities in rural  and  urban  areas  seeking  Registration  in  Form-I  furnishing  the  details. Provided that Micro Finance Institution operating in more than one District shall file separate applications for Registration in each District.

4. Verification by the Registering Authority:

(1) The Registering Authority shall verify whether the details submitted by the Micro

Finance Institution are in accordance with the requirements of rule 3 or not.

 

(2) In case, the application is not in accordance with the requirements of rule 3, it shall be returned for rectification duly stating the reasons for the same.

 

(3) If the application is in accordance with the requirements of rule 3, the same shall be published in the village/municipal ward at the office of the Village Organization / the Slum Level Federation, for information and to get feed-back, if any.

 

5. Consequences of furnishing incorrect information: If any of the information furnished in Form – 1 is found to be incorrect, the Registering Authority shall also launch prosecution under the relevant provisions of the Indian penal Code, 1860.

 

6. Undertaking to be given  by Micro  Finance Institution  before according Registration: Every Micro Finance Institution shall give an undertaking in Form-2 signed by the Chief Executive Officer or a person of equivalent designation of the Micro Finance Institution.

 

7. Time limit for Registration: If all the details furnished by the Micro Finance Institution are in accordance with the requirements of rules 3 and 6, Registration in Form – 3 shall be issued within seven working days from the date of submission of Form-1 and Form – 2.

 

8. Renewal of Registration:

 

(1) Every Micro Finance Institution registered as stated above and desirous of continuing operation of money lending after completion of the one year period, shall apply for renewal of Registration as per the provisions of sub-section (4) of Section

3 of the Act in Form – 4 listing therein name-wise details of the borrowers along with the purpose for which loan has been given and the interest rate charged.

 

(2) Every application for renewal shall be verified by the Registering Authority by publishing the relevant details in the villages/wards through the Village Organisation or Slum Level Federation or any other person or agency authorised by the Registering Authority inviting objections if any, for such renewal within such date as shall be specified.

 

 

(3) All objections received from the Self Help Groups or the Village Organisations or the Slum Level Federations, shall be got verified by the Registering Authority to satisfy  himself  about  the  compliance  of  the  Micro  Finance  Institution  to  the provisions of the Act and these rules.

 

(4) If any of the details furnished by the Micro Finance Institution in the application filed for renewal, either based on the verification done by the Registering Authority or based on complaints received from public, are found to be incorrect, or if the Micro Finance Institution is found to have violated any of the conditions of the Act, the Registering Authority shall refuse renewal in writing stating the reasons therein.

 

(5) The Registering Authority shall also launch prosecution under the relevant provisions  of  the  Indian  Penal  Code,  1860  in  all  cases  of  furnishing  false information.

 

9. Register of Micro Finance Institutions operating in a district:

 

(1) Each Registering Authority shall maintain the list of Micro Finance Institutions registered in the district in Form – 5, which shall be available for inspection by general public during the office hours.

 

(2) The relevant particulars of the Form – 5 concerning the Gram Panchayat or the slum area shall be published at least twice a year on the notice board of the concerned Gram Panchayat or the Ward Office concerned, apart from exhibiting them on the website.

 

10. Cancellation of the Registration:

 

(1) The Registering Authority shall cancel the Registration accorded to a Micro Finance Institution on violation of any condition of the Act, or any of these Rules or any clauses of the points of the Undertaking submitted in Form – 2, or on any complaint filed and found to be valid under section 14, or suo  moto  under  section

5 (1), including the following:

 

(a) Charging of rates of interest higher than what has been stated in the application for registration.

 

(b) Attempt to recover any money not permitted under the Act or under these rules on the loans given.

 

(c) Operating in areas not specifically permitted in the Registration.

 

(2) Before passing an order for cancellation of the Registration, the Registering Authority shall cause a notice to be served upon the Micro Finance Institution, requiring it to show cause within fifteen days from the date of service of such notice as to why its registration should not be cancelled.

 

(3) The Registering Authority shall, if the Micro Finance Institution files objections before the date fixed in the notice, after considering the same and if the Micro Finance Institution does not file objections before the date fixed, than after the said date, pass an Order in accordance with the Act, which shall be communicated to the Micro Finance Institution.

 

11. Suspension of Registration:

 

(1) In case of commission of offences under section 11(7) and section 16 of the Act, the Registering Authority can issue an order for suspension of the Registration pending enquiry after recording the reasons for such suspension which shall be communicated to the Micro Finance Institution.

 

 

(2) Every suspension of Registration shall immediately be followed by a notice under Rule 10 (2) and the enquiry shall be completed within 15 days from the date of receipt of explanation of such Micro Finance Institution.

 

12. Effect of cancellation or non-renewal of Registration: In case of cancellation of registration as per rule 10 or non-renewal of registration as per rule 8 (4), such Micro Finance Institution shall not extend any fresh loans to the borrowers, but will be entitled to recover the dues of the subsisting loans subject to following the provisions of section 16 of the Act.

 

13. No dual membership:

 

(1) No member of a Self Help Group shall be a member of another Self Help Group or any group formed by any Micro Finance Institution.

 

(2) For this purpose, each Registering Authority shall maintain a complete and updated database of the all Self Help Group members and the list of borrowers furnished by the Micro Finance Institutions operating in the district.

 

14. Disclosure of interest rates:

 

(1) All Micro Finance Institutions registered under this Act shall display the effective interest rates being charged on the loans given by them prominently in all their offices; and the same shall be furnished to the borrowers in writing.

 

(2) Non-display of the effective rate of interest shall be an offence punishable under section 18 of the Act.

 

15. All Charges to be subsumed under interest only:

 

(1)  No  Micro  Finance  Institution  shall  levy  any charge  or  impose  any cost  by whatever name called, on the borrowers except the interest rate as disclosed in the letter granting the loan and as reported in the Form – 1 and in Form – 4.

 

(2) No Micro Finance Institution can collect any amounts not being a part of the interest rate and any such collection is a violation under section 8 (2) of the Act punishable under section 18.

 

16. Discharge of certain loans:

 

(1) Based on the database submitted by Micro Finance Institutions registered under these Rules, each Registering Authority shall, identify such loans where the interest paid has exceeded the principal borrowed, and issue a direction in Form – 6 for discharge of such loans and for return of such interest portion that exceed the principal amount to the borrower.

 

(2) Any attempt to recover these loans discharged in the above manner shall be an offence under section 18 of the Act and the Registration of such Micro Finance Institutions is liable for cancellation as per section 5 of the Act.

 

17. Procedure to be adopted in case of excess recovery:-

 

(1) Every Registering Authority, on any complaint of excess recovery of the loan by the Micro Finance Institution or in cases where the interest exceeded the principal amount, shall cause notice to be served upon the said Micro Finance Institution, fixing a date requiring the Micro Finance Institution to show cause why the Registration should not be suspended or cancelled or renewal thereof be prohibited for the said contravention.

 

 

(2) The Registering Authority shall consider the explanation filed if any, received before the last date stated in the notice, and pass order for refund of such excess money to the borrower.

 

(3) Non-implementation of the Order passed in accordance with section 9 of the Act shall be an offence punishable under section 18 of the Act.

 

18. Procedure in case Micro Finance Institution wants to advance loan to a Self Help Group member:- (1) Micro Finance Institution proposing to advance loan to a Self Help Group or its member already having an outstanding loan taken from any Bank through the Self Help Group, shall apply for prior approval in Form-7 giving details of the member of the Self Help Group as provided in section 10 (2) of the Act.

 

Provided that any advance of loan to family member of the Self Help Group woman by the Micro Finance Institution after the  Act  is deemed  to be a  loan advanced to Self Help Group woman by the Micro Finance Institution. Any violation of this rule by Micro Finance Institution is  violation of the Act.

 

 

(2) The Registering Authority or any person or Agency authorised by him shall verify the details within the time limits laid down in the Act; and conduct such verification with the Self Help Group to satisfy himself that the purpose for which the loan is proposed would generate additional income needed to service the loan.

 

(3) Every permission granted under section 10 (3) of the Act shall be in Form – 8.

 

19.  Granting multiple  loans to be  an  offence: Any Micro  Finance Institution granting a loan to any Self Help Group or its members having an outstanding loan except as provided in section 10 shall be liable for punishment under section 18 of the Act.

 

20. Manner, form and format of the loan: –

 

(1) The loan contracted between a borrower and the Micro Finance Institution shall be repayable in the manner as laid down below:

 

(a) The repayment of the loan shall be on a periodicity which shall not be less than one month.

 

(b) The interest shall be calculated on diminishing balances.

 

(c) The equated installments calculated in the above manner shall be intimated along  with  all  other  terms  and  conditions  of  the  loan  and  shall  be  duly acknowledged by the borrower.

 

(2) The letter sanctioning the loan shall be in Form – 9.

 

21.  Issue  of  receipts  for  the  repayments:  Every  payment  received  from  a borrower shall be duly acknowledged by issuing a written receipt and a copy of the same shall be available in the records of the Micro Finance Institution.

 

22. Furnishing statement of account to the borrower:- The Micro Finance Institution shall deliver a copy of the statement of account on demand free of cost to the borrower.

 

23. Place of collecting repayments in urban area: No Micro Finance Institution shall collect repayment of the installment due in urban areas except in a public place like office of Slum level Federation or ward office.

 

 

24. Micro Finance Institution not to employ recovery agents:

 

(1) No Micro Finance Institution shall employ any recovery agent for recovery of the loans except the employees named in the Form-1 filed at the time of Registration.

 

(2) For the purpose of this Rule, any person who is not named in Form 1 but effecting  recoveries  shall  be  treated  as  recovery  agent;  and  Micro  Finance Institution responsible for such collection shall be liable for action under section 18 of the Act.

 

 

 

25. Monthly Statement by Micro Finance Institution to Registering Authority :

 

(1) The monthly Statement as per section 12 of the Act shall be in Form-10 of these rules  and  shall  contain  all  the  loans  granted  and  recoveries  made  during  the previous month.

 

(2) Non submission of Form-10 shall be an offence punishable under section 18 of the Act.

 

26. Procedure for summoning Witnesses and requiring production of documents: – For the purposes of implementing the provisions of the Act, the Registering Authority shall have the same powers with regard to summoning of Witnesses, requiring production of documents, recording evidence and other proceedings as are provided under the Code of Civil Procedure, 1908 and the provisions of the Code of Criminal Procedure 1973.

 

27. Power to search and seizure:

 

(1) The Registering Authority or any other officer authorised by him can conduct the search of such premises and seize such records as required under section 13 of the Act.

 

(2) The Registering Authority or any other officer authorised by him can summon the representative of the Micro Finance Institution located in the district by issuing summons as per Form-11.

 

28. Complaints:

 

(1) Every complaint under Section 14 of the Act shall be either in writing before the

Registering Authority or by using the Toll Free telephone provided for this purpose.

 

(2) All complaints registered shall be enquired into by the Registering Authority or an officer authorised by him within seven days from the date of receipt of the complaint.

 

(3) If, after due enquiry into the complaint, the Registering Authority is satisfied that there is sufficient evidence of violation of the provisions of the Act,  he shall, issue a show cause notice to the Micro Finance Institution in Form – 12 and take action under Rule 10.

 

 

29. Prosecution of cases:

 

(1) In case of any offence committed under sections 16 and 17 of the Act, the Officer in charge of the Police Station under whose jurisdiction the offence has occurred shall register the case either on complaint or suo moto and proceed in accordance with the provisions of the Code of Criminal Procedure, 1973.

 

(2) The progress of investigation and prosecution in all such cases shall be reported to the Registering Authority on a monthly basis.

 

 

The Commissioner of Printing, Stationery and Stores Purchase (Printing Wing) Hyderabad is requested to publish the above  notification in the Extraordinary issue of the Andhra Pradesh Gazette, and furnish 1000 copies of the Notification to Government in Panchayat Raj and Rural Development (RD.III) Department immediately.

 

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

 

R.SUBRAHMANYAM

PRINCIPAL SECRETARY TO GOVERNMENT (RD) To

The Commissioner Printing, Stationary and Stores purchase (Printing wing) Printing

Press, Chanchalguda, Hyderabad

The Chief Executive Officer, SERP (with a request to cause wide publicity among all concerned)

All Project Directors, DRDAs and Registering Authorities for rural areas All Project Directors, MEPMA and Registering Authorities for urban areas Copy to:

The Principal Secretary, Municipal Administration  & Urban Development

Department

The Director General of Police, AP Hyderabad

The District Collectors of all Districts

The Superintendents of Police of all districts The Principal Secretary to Chief Minister. The OSD to Minister (RD & NREGP)

The PS to Chief Secretary to Government

The PS to Principal Secretary to Govt. (RD), PR&RD Department

The PR & RD (General) Department

SF/SC.

 

 

//FORWARDED :: BY ORDER//

 

 

 

SECTION OFFICER

 

 

 

Format for application for registration

1. Name of the Micro Finance Institution / Organization :

2. Nature of the Organization : (Company/Partnership Firm/Society/NBFC/ Co-Operative Society/Money Lender/HUF/ Proprietary Firm / Others Specify)

 

B. Details of incorporation

1. Whether Incorporated or not :

2. Date of incorporation:

3. Place of Incorporation:

4. Reference number of Incorporation:

5. Present Address of the registered office:

6. Details of persons connected with and responsible For the day-to-day control, business and Management of the Micro Finance Institution:

 

S No Name

of the person

Designation

Official address

Residential

address

Contact

number

Email address
1 2 3     6 7

 

 

 

C. Details of Organization at District Level

1. New Micro Finance Institution or Existing Micro Finance Institution

2. List of the office(s) of the Micro Finance Institution in the district:

 

S No Name of

the branch

Office

Address

Name of

the head of the branch operations

Contact

number

Email

address

1 2 3 4 5 6

 

3. Names and details of employees deployed in the district.

Sl. No. Name Designation Residential

Address

Contact

No.

EPF

Code

Area

allocated for operation

1 2 3 4 5 6 7

 

Sl

. N o.

Name

of the Borro wer / Fathe r/ Husb and

Rati

on Car d No.

Village/War

d/slum

Mandal/

Town

Name

of the Self Help Group belon ging

to

Amo

unt of loan give n

Purp

ose for loan

Amount

realized so far towards

Princip

al

Inter

est

1 2 3 4 5 6 7 8 9 10

 

D. Details of subsisting loans

 

 

 

 

Number of Installments

for repayment

Periodicity

of payment (Daily/ Weekly/ Fortnightly/ Monthly)

Mode of

compounding of interest

 

((Weekly rest

/ Monthly rest

/ Quarterly rest / Half Yearly rest

/Yearly rest)

Installment

amount

Effective

rate of interest (including interest, insurance and all other charges payable by the borrower)

Total

number

So far paid
11 12 13 14 15 16

 

Sl.No. Village/slum Mandal/Town Name of

the functionary

/supervisor

Name of

the branch of Micro Finance Institution servicing the area

Number of

existing borrowers

1. 2. 3. 4. . 6.

 

E. Area of Operation: Currently operating or assigned to operate during the year

 

 

 

 

 

 

 

 

 

 

 

 

C E R T I F I C A T E

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed.

 

I understand and agree that if any of the information is found to be false, the organization will be liable for prosecution under provisions of Law.

 

I request that the Micro Finance Institution may be registered for operation in the district in accordance with the provisions of the Act.

 

 

 

 

 

 

Date : Place :


Signature of the CEO

 

 

Written undertaking to be submitted by the Chief Executive Officer

 

I, the Chief Executive Officer of the Micro Finance Institution authorized to sign on behalf of the Micro Finance Institution, hereby give the following undertaking that the  said Micro Finance  Institution  shall at  all times  during the currency of  the Registration shall:

 

1. Act in conformity with all the provisions of the Act.

2. Not seek any security from a borrower by way of pawn, pledge or other security for the loan.

3. Not levy any hidden charges by any name or in any form, in the name of insurance, application fee, processing fee, recovery fee and the like -except the interest rate duly disclosed to the borrower.

4. Display the rates of interest charged in a conspicuous place in the Registered Office, Head Office and all Branch Offices in bold letters visible to members of the public.

5. Not collect interest in respect of any loans advanced an amount in excess of the principal amount under different names.

6. Not resort to further loaning to an Self Help Group or its members having an outstanding bank loan without prior approval in writing from the Registering Authority.

7. Furnish and update the details of the borrowing Self Help Group group members and other information in manner laid down under these Rules.

8. Not deploy any agents for recovery nor shall use any other coercive action.

9. Maintain the statutory records as per the Act and to cooperate with any officers acting under the provisions of the Act.

10.Not carry out any money lending activity outside the area mentioned in the

Form 1.

11. Not to recover any loan not disclosed in Form 1.

 

C E R T I F I C A T E

 

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed.

 

I understand that any violation of any of the above conditions of undertaking will result in cancellation of Registration as laid down in the Act and the Rules.

 

 

 

 

Date :                                                                  Signature of the CEO Place :

 

 

Office of the Registering Authority            District

 

under the AP Micro Finance Institutions ( Regulation of Money lending ) Rules,

2011

 

Registration of a Micro Finance Institution for operation

 

In accordance with the information furnished by the Micro Finance Institution in the Form I and II, Registration has been accorded to the Micro Finance Institution under the Provisions of A.P. M.F.I. (Regulation of Money Lending) Act, 2011 as per the details stated below:

 

1.       Name of the Micro Finance Institution:

2.       Registration Number:

3.       Area of operation: Urban/rural

4.       List of villages/wards permitted for operation (enclosed):

5.       Date of issue of Registration:

6.       Date of expiry of the Registration:

 

This Registration can be cancelled prior to the period of expiry in accordance with the Section 5 of the Act and as laid down in the Rules issued thereunder.

 

This Registration shall not be transferable or assignable to any other person or

Organisation.

 

Given under my hand and seal on this …………….. day of ………… 20..

 

Registering Authority,

…………… District

 

 

Prescribed format for application for renewal of registration

 

1. Name of the Micro Finance Institution / Organization          :

2. Nature of the Organization                                                   : (Company/Partnership Firm/Society/NBFC/

Co-Operative Society/Money Lender/HUF/ Proprietary Firm / Others Specify)

 

B. Details of incorporation

1. Whether Incorporated or not :

2. Date of incorporation:

3. Place of Incorporation:

4. Reference number of Incorporation:

5. Present Address of the registered office:

6. Details of persons connected with and responsible For the day-to-day control, business and Management of the Micro Finance Institution:

 

S No Name of

the person

Designation Official

address

Residential

address

Contact

number

Email

address

1 2 3 4   6 7

 

 

 

C. Details of Organization at District Level

 

1. New Micro Finance Institution or Existing Micro Finance Institution

2. List of the office(s) of the Micro Finance Institution in the district:

S No Name of

the branch

Office

Address

Name of

the head of the branch operations

Contact

number

Email

address

1 2 3 4 5 6

 

3. Names and details of employees deployed in the district.

Sl.No. Name Designation Residential

Address

Contact

No.

EPF

Code

Area

allocated for operation

1 2 3 4   6 7

 

 

 

 

D. Details of subsisting loans

Sl

. N o.

Name

of the Borro wer / Fathe r/ Husb and

Rati

on Car d No.

Village/War

d/slum

Mandal/

Town

Name

of the Self Help Group belon ging

to

Amo

unt of loan give n

Purp

ose for loan

Amount

realized so far towards

Princip

al

Inte

rest

1 2 3 4 5 6 7 8 9 10

 

D. Details of subsisting loans

 

 

Number of Installments

for repayment

Periodicity

of payment (Daily/ Weekly/ Fortnightly/ Monthly)

Mode of

compoundin g of interest

 

((Weekly rest

/ Monthly rest / Quarterly rest / Half Yearly rest

/Yearly rest)

Installm

ent amount

Effective rate of

interest (including interest, insurance and all other

charges payable by the borrower)

Total

number

So far paid
11 12 13 14 15 16

 

Sl.No. Village/slum Mandal/Town Name of the

functionary

/supervisor

Name of the branch

of Micro Finance Institution servicing the area

Number of existing

borrowers

1. 2. 3. 4. . 6.

 

E. Area of Operation: Currently operating or assigned to operate during the year

 

 

 

 

 

 

 

 

 

 

 

 

C E R T I F I C A T E

 

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed.

 

I understand and agree that if any of the information is found to be false, the organization will be liable for prosecution under provisions of Law.

 

I request that the Registration of the Micro Finance Institution may be extended for a further period of one year for operation in the district in accordance with the provisions of the Act.

 

 

 

 

 

 

Date : Place :


Signature of the CEO

 

Form 4 A

Written undertaking to be submitted by the Chief Executive Officer

 

I, the Chief Executive Officer of the Micro Finance Institution authorized to sign on behalf of the Micro Finance Institution, hereby give the following undertaking that the said Micro Finance Institution shall at all times during the currency of the Registration shall:

 

1. Act in conformity with all the provisions of the Act.

2. Not seek any security from a borrower by way of pawn, pledge or other security for the loan.

3. Not levy any hidden charges by any name or in any form, in the name of insurance, application fee, processing fee, recovery fee and the like -except the interest rate duly disclosed to the borrower.

4. Display the rates of interest charged in a conspicuous place in the Registered Office, Head Office and all Branch Offices in bold letters visible to members of the public.

5. Not collect interest in respect of any loans advanced an amount in excess of the principal amount under different names.

6. Not resort to further loaning to an Self Help Group or its members having an outstanding bank loan without prior approval in writing from the Registering Authority.

7. Furnish and update the details of the borrowing Self Help Group group members and other information in manner laid down under these Rules.

8. Not deploy any agents for recovery nor shall use any other coercive action.

9. Maintain the statutory records as per the Act and to cooperate with any officers acting under the provisions of the Act.

10.Not carry out any money lending activity outside the area mentioned in the Form

1.

11. Not to recover any loan not disclosed in Form 1.

 

C E R T I F I C A T E

 

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed.

 

I understand that any violation of any of the above conditions of undertaking will result in cancellation of Registration as laid down in the Act and the Rules.

 

 

 

 

Date :                                                                  Signature of the CEO Place :

 

 

Register of Micro Finance Institutions Registered to operate in the district

(Rule 9)

 

1. S. No. :

2. Registration No: :

3. Name of the Micro Finance Institution :

4. Incorporation details :

5. Address of the Head office :

6. Address of the Head Office in the District :

7. Area of Operation :

8. Name Micro Finance Institution Employees of the village/slum :

9. No of the loans given in the village/slum :

10.Effective Rate of Interest :

11.Date of Expiry of Registration Certificate:

 

Registering Authority

 

 

Discharge of loans

(Rule 16)

Proceedings of the Registering Authority

Present:                 

 

Whereas it has come to the notice of the Registering Authority that (state the name of the Micro Finance Institution) has given a loan to (Name of the borrower) of (Rs. –

–) repayable in (—) installments at (effective interest rate)

 

 

And  the  said  borrower  has  repaid  Rs.

thereon,


being the principal and the interest

 

 

Now the interest having exceeded the principal amount, in accordance with the provisions of Section 9 of the Act, the following orders have been issued:

 

1. The loan stated above taken from the said Micro Finance Institution by the said borrower stand discharged and the said Micro Finance Institution shall not recover any further amounts from the borrower.

 

 

2.  The  said  Micro  Finance  Institution  shall  return  (Rs.


) being the interest

 

portion that exceeded the principal amount to the borrower within 15 days from the date of this order.

 

Further the said Micro Finance Institution shall take note that any attempt to recover the loans as discharged in the above manner shall an offence under Section 18 of the Act for which the Registration of the said Micro Finance Institutions would be liable for cancellation as per Section 5 of the Act.

 

 

 

 

 

 

To

The Representative of the Micro Finance Institution

The Borrower

The Village Organisation / Slum Level Federation


Registering Authority

 

Form – 7 (Rule 18)

Prescribed format to get prior Approval to advance loan to Self Help Group

Member

Name of the Micro Finance Institution :                        Registration Number: Permission may be issued for lending to the Self Help Group members details of

whom  are  furnished  hereunder  for  giving  further  loan  from  the  Micro  Finance

Institution in accordance with Section 10 of the Act:

 

 

 

 

Name of the Borrower & Name of the SHG

woman related to the borrower

 

Name of the Self Help Group

 

Bank from which Loans has been obtained by the Self Help Group

 

Date of the loans granted by the Bank

 

Amount paid to the Self Help Group by the

Bank

 

Amount due from the Self Help Group

 

Fresh amount of loan sought by the Self Help

Group from the Micro Finance Institution

 

Rate of Interest

 

Installment amount

 

Purpose of the loan

 

Periodicity of the loan repayment

 

Total no of installments

 

Anticipated additional monthly income to the member

 

Details of due diligence done

Details of other loans of the

borrowers

 

Name of the Lender

 

Amount Borrowed

 

Date of loan

 

Rate of interest

 

EMI

 

Amount repaid so far

 

Outstanding loans

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

 

 

 

This is to certify that the particulars stated above are true and correct to the best of my knowledge and belief and no information has been knowingly or unwittingly suppressed. I understand that any violation of any of the above conditions of undertaking will result in cancellation of Registration as laid down in the Act and the Rules. The Resolution of the Self Help Group has been enclosed in Form-7 A.

 

Authorised signatory for the Micro Finance Institution

 

Form -7 A

Resolution of the Self Help Group

 

Name of the Self Help Group: Name of the village/slum Name of the Mandal/Town Date:

 

Resolved  that  Smt……………….w/o                         ,  a  member  of  this  group requires loan of (Rs.        _) for (state purpose of the loan). The group has verified and is convinced that the above loan would generate additional income required to service the loan.

 

The …… Micro Finance Institution come forward to advance the above loan at

% of effective interest requiring her to pay an equated installment of Rs._       for (state the number of installments) on a declining balance method. There are no other charges levied on the loan except the above interest.

 

Hence this group is resolved to recommend the name of the member to get loan from the said Micro Finance Institution.

 

Signature of the Self Help Group members.

 

 

Grant of Permission for further loan

(Rule 18)

Proceedings of the Registering Authority ————- District,

 

Under the provisions of The AP Micro Finance Institutions (Regulation of money lending ) Rules 2011

 

Having gone through the application of ———Micro Finance Institution for the prior approval for advancing a loan of Rs.                    to Smt ————– of the (state the name   of   the   Self   Help   Group),   —————–village/ward,   ————   —— mandal/town and the resolution passed by the ——– Self Help Group, and after verifying  satisfying myself  of  the  capability  of  the  Self  Help  Group  member  to service the said loan, and also that the further loan will generate additional income to the Self Help Group member, needed for servicing the debt, permission has been accorded to ————–Micro Finance Institution to advance (Rs.            ) as the loan to Smt. ——————- member of the Self Help Group——————.

 

Seal                                                                               Sd/-Registering Authority

 

 

Sanction letter of a loan by Micro Finance Institution

 

To

 

 

 

With reference to your application dt… for sanction of loan (state the name of Micro Finance Institution) hereby sanction an amount of Rs.————— loan as per the terms and conditions stated below:

 

1. Name of the borrower :

2. Amount sanctioned :

3. Date of the sanction :

4. Effective rate of interest (to include all charges) :

5. No of installments :

6. Periodicity of the repayment (monthly/quarterly/half-yearly):

7. Equated instalment amount (Rs)

8. Purpose of the loan :

9. Name and address of the Micro Finance Institution functionary :

 

Please arrange to return the duplicate copy of this letter duly signed for having accepted the above conditions.

 

Seal                                   Sd/-(Authorized signatory of Micro Finance

Institution)

 

 

Monthly Statement of Micro Finance Institution for        month

 

Name of the Micro Finance Institution: Address of the Micro Finance Institution:

 

Name of

the borrower

Name of

Self Help

Group

Village

/slum

Mandal/Town Sanctioned

amount

Date of

Sanction

(1) (2) (3) (4) (5) (6)
Purpose of

the loan

Repayment

frequency

Number of

installments

Equated

instalment

Amount so

far repaid

Outstanding
(7) (8) (9) (10) (11) (10)

 

 

 

sd / Authorised signatory

 

 

(rule  27) Summon to witness

(See sections 160,91 CrPC under section 13 of The Andhra Pradesh

Micro Finance Institutions ( Regulation of Money Lending) Act, 2011

 

To

[Name, description and place of residence.] …………….

 

WHEREAS A complaint has been made before me against the (state the name of the Micro Finance Institution) for violating the provisions of the A.P. Micro Finance Institutions (Regulation of Money Lending ) Act, 2011 and it appears to me that you are likely to give material evidence or to produce any document or other thing for the prosecution;

 

You  are  hereby  summoned  to  appear  before  the  Registering  Authority  on  the

…………….day of.. …………………next at ten o’clock in the forenoon, to produce such document or thing or to testify what you know concerning the matter of the said complaint., and not to depart thence without leave of the Registering Authority; and you are hereby warned that, if you shall without just excuse neglect or refuse to appear on the said date, a necessary proceedings will be issued to compel your attendance.

 

Dated this ………………………………….day of……………20……………………

 

 

(Seal of the Registering Authority)


 

 

(Signature)

 

Form – 12 (Rule 10 and 28)

SHOW CAUSE NOTICE TO Micro Finance Institution

(O. 5, R. 3. of CPC r/w Section 5 of the A.P. Micro Finance Institution (Regulation of

Money Lending) Act, 2011)

 

To

………………………………………….

…………………………………………………………

……..[Name, description and place of residence.] …………….

 

Whereas it has brought to the knowledge of the Registering Authority that the Micro Finance Institution has violated the provisions of the Act, 2011 by indulging in the following acts.

1….

2….

3…

 

You are hereby summoned to appear before the Registering Authority in person on the ……… day of……… 20… at ……… o’clock at ……….(place)….., to submit your reply; and you are further directed to produce on that day all the documents upon which you intend to rely in support of your defense.

 

Take notice that, in default of your appearance of the day before mentioned, the mater will be heard and determined in your absence.

 

Given under my hand and the seal of the Court, this ….. day of……. 20

….

Seal                                                                               Registering Authority

 

You are hereby summoned to appear before the Registering Authority in person on the ……… day of……… 20… at ……… o’clock at ……….(place)….., to submit your reply; and you are further directed to produce on that day all the documents upon which you intend to rely in support of your defense.

 

Take notice that, in default of your appearance of the day before mentioned, the mater will be heard and determined in your absence.

 

Given under my hand and the seal of the Court, this ….. day of……. 20

….

Seal                                                                               Registering Authority

Leave a comment

Your email address will not be published. Required fields are marked *