The Rashtrakutas and their Times c22.114

c22.114

If the capital advanced was in kind we find that the rate of interest was much higher. Ukkal inscription No. 5, belonging to the time of Kampanavarman, (82) records an agreement of the villagers to pay an interest of 100 kāḍis on a capital of 400 kāḍis of rice, while another from the same locality mentions an interest of 500 kāḍis on a capital of 1000. The rate of interest in these cases works out to be 25% and 50% respectively. Here again epigraphy is seen confirming the testimony of the Smritis. Kauṭalya (83) permits an interest of 50% in the case of the capital in grain, and Manu, (84) Yājñavalkya, (85) and Vasiṣṭha, (86) who do not permit the capital in cash to be exceeded by the interest, declare that in the case of the capital in corn the interest may amount to two times the capital, showing thereby that the normal rate of interest permitted on the corn was about twice as high as that allowed on the capital in cash.