India as Known to Panini: A Study of the Cultural Material in the Ashtadhyayi c9.s6.t1.48

c9.s6.t1.48

Pāṇini also refers to a much lower rate of interest of half a *kārshāpaṇa* per month called *ardha* and *bhāga* (V.1.48-49) which was equivalent to 6% per annum, the loan transaction being called *ardhika* or *bhāgika*. The *Kāśikā* explains it either as ½ percent (*bhāgikaṁ śataṁ*) or 2½ percent (*bhāgikā viṁśatiḥ*) per month, which would make the rate of interest vary from 6% per annum to 30%.