The Cambridge History of India, Vol. I: Ancient India v1.c19.s9.360

v1.c19.s9.360

No definite rates of interest on money loans appear in the early books. But the term which appears in the law-books as ‘usury’ (*vṛddhi*, Pāli *vaḍḍhi*) is found. Meaning literally profit or increase, it may very early have acquired the more specialised import. There is a tolerant tone concerning the money-lender in a Jātaka tale, where a patron, in enabling a huntsman to better himself, names money-lending (*iṇa-dāna*), together with tillage, trade, and harvesting as four honest callings¹². Gautama is equally tolerant¹³. But the general tendency of this profession to evade any legal or customary rate of interest and become the type of profit-mongering finds condemnation in other law-books¹⁴. Hypocritical ascetics are accused of practising it¹⁵. No one but the money-lender seems to have lent capital wealth for interest as an investment. For instance, only bonds (*paṇṇā*) are spoken of in the case of the generous Anāthapiṇḍika's 'bad debts'¹. Capital wealth was hoarded, either in the house—in large mansions over the entrance passage (*dvāra-koṭṭhaka*)²—under the ground³, in brazen jars under the river bank⁴, or deposited with a friend⁵. The nature and amount of the wealth thus hoarded was registered on gold or copper plates⁶.