The Rashtrakutas and their Times c22.110

c22.110

In some localities, however, much higher rates prevailed. A Bāṇa inscription, dated 915 A.D., ⁷⁷ states that the interest on 20 Kaḷanjus was to be 5 Kaḷanjus. The rate of interest in this case is, therefore, 25%. A still higher rate of interest is seen to prevail in a record, ⁷⁸ belonging to the time of Parāntaka I, i. e., the first half of the 10th century. A local temple at Annamalai, which had to pay to the assembly a tax of 18 ilakkāsu on the lands belonging to it, is seen arranging for the annual payment of 6 ilakkāsu by depositing a capital of 15 ilakkāsu with the members of the village assembly. The rate of interest here works out to be as high as 40%. This rate is much above the normal one; it may be due to the village assembly being in urgent need of funds for meeting some pressing need of the hour; it is also possible that the assembly may have decided to show a special favour to the deity of the village by giving an indirect concession in the land tax by allowing an abnormal rate of interest on the capital deposited by the temple authorities for that purpose.