Of lending and depositing

Having dealt with the overview, general rules of transactions, marriages, division of inheritance and real estate; this post tries to give some highlights on two chapters of dharmasthIyam. 

Chapter 11 – RNa dAnam – relating to lending money
Chapter 12 – aupanithikam – concerning deposits including pledge

cANakya defines maximum percentage of interests for each type of loan. 1.25% per month is the allowed limit on the interest. For business the rates can go up to 5%, 10% and 20% depending on types of trade.

The loan transaction between wife and husband, father and son and brothers are invalid. They can’t approach a court to settle disputes.

Wife is generally not a joint litigant in case of loans taken by the husband. There are exceptions to the rule. When wife takes loans while the husband on long trip abroad, husband is responsible to repay.

Wife’s brother, friend, dependent, the giver and taker of the loan can’t be the witness in case of disputes.

Depositing money with others for an interest follows the same rules as lending money. But when items are pledged there are specific rules related to them.

Chapter 12 also deals with the disputes related to the money clearing agencies (like modern day banks and olden day Hundi systems etc., )

As with every other matter, several fines for different kinds of situations in the dispute are prescribed in these chapters.

These two chapters give critical view into the matters related to money lending, depositing and resolving disputes arising from them.

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