The Cambridge History of India, Vol. I: Ancient India v1.c21.68

v1.c21.68

Thus the legal rate of interest is set at (the equivalent of) fifteen per cent. per annum (five *māshas* a month for twenty *kārshāpaṇas*, Gaut., XII, 29; Baudh., I, 5, 10, 22); but according to Vasishṭha (II, 48), 'two, three, four, five in the hundred is declared in the Smṛiti to be the monthly interest according to caste.' This means that the highest caste pays two, the next caste three, and so on (limited by the scholiast to cases of loans without security). The same author prohibits Brāhmans and Kshatriyas from being usurers; but Baudhāyana says that a Vaiçya may practise usury (Vas., II, 40 and Baudh., I, 5, 10, 21). That there was, however, a notable laxity in carrying out the supposed inflexibility of caste-rules is evident from the fact that the law-makers expressly permit the upper castes to take to the occupation of the lower when in need of sustenance. Even the Brāhman priest who neglects to say his prayers may at the king's pleasure be forced to perform the work of Çūdras (Baudh., II, 4, 7, 15). Thus, with certain restrictions as to what he sells, etc., a priest or warrior may support life by trade and agriculture (Vas., II, 24 f.). But a man 'reborn' who persists in trade cannot be regarded as a Brāhman, nor can a priest who lives as an actor or as a physician (*ibid.* III, 3). In other words, as may be concluded from the very laws inveighing against them, at the time of the Sūtras there were many nominal members of the priestly and royal orders who lived as farmers and traders, perhaps even as usurers (a special law prohibits this, Vas., II, 40; cf. Manu, X, 117), not only acting the part of gentleman farmers but living as humble ploughmen (Vas., II, 33).