25$

lowing figures show the minimum and maximum rates of
interest charged by money-lenders according to the nature
of security offered :

Nature of the Security
Minimum rate of interest
Maximum rate of interest

Land . .
Percentage 12
Percentage 18

Silver ornaments . . Gold „ Personal .....
S)
10 18
»i 12 25

The money-lender, as a rule, charges some commission
at the time of advancing the loan. This varies from 6
to 9 per cent, when loans are taken on landed or personal
security, and 3 to 6 per cent, when they are taken on the
security of gold ornaments.
The Society does not charge any commission. On the
contrary, it teaches people thrift by making it a rule for
them to deposit in their own name 10 per cent, of the
loan they borrow. The rate of interest charged by the So-
ciety is 9 per cent, for all loans of Rs. 50 or more, and
9^ per cent, for all loans below Rs. 50. There is, however,
one noteworthy feature regarding this Society, namely,
that it has introduced a system of rebate which is
calculated at i per cent, on the loan repaid and is given
to one who repays the debt within due time. This
device was introduced only last year and it is too early
to announce any judgment on its effects.
The Pathan—a menace : While discussing the rate of
interest there is one thing of importance which deserves
notice. During the course of our enquiry on this subject
we came across one or two cases in this village where
families have borrowed money from Pathans, who are
notorious in this area for charging as high a rate of inte-
rest as 150 to 300 per cent. They give, say, Rs, *o and
will demand Rs. 15 or Rs. 30 even within a few months.
Not only do they charge an exorbitant rate of interest