Life and Conditions of the People of Hindustan (1200–1550 A.D.) c6.s2.t2.18

c6.s2.t2.18

We shall treat the question of money-lenders separately from other business customs and practices. A whole class of people from both communities began to thrive on the business of lending money. They advanced loans to support commercial undertakings, but their principal business was to lend money at the most profitable rate of interest. These *Sahus* and *Mahajans*, as money-lenders and bankers were called, were extremely popular with all the upper classes whose extravagance and constant demand for money were proverbial. It is difficult to ascertain the rate of interest, but by comparing a number of stray statements of Amir Khusrau, we will put it for a rough calculation at 10 per cent. per annum on big sums and 20 per cent. on small or petty sums.² The system of these usurious loans and compound rates of interest led to the heavy indebtedness of the poorer people who borrowed small sums but could hardly pay back, while the greater resources of a noble and, in the last resort, his power and influence came to his rescue.³ Let us note in this connection, that people usually carried about their cash or valuables in *himyanis* or hollow belts of tough cloth, which they usually wore around their waist on a journey.⁴