Hindu Administrative Institutions c10.s3.23

c10.s3.23

The *Saṃhitas* fix it at 15 per cent. per annum. The ruling of Vyāsa on this point is interesting. ‘In the case of a pledge the rate of interest is 1¼ per cent per month. In the case of a surety the eighth part is added to this. In the absence of either (a pledge or surety) 2 per cent. per mensem would be levied from the debtors of the sacerdotal class.¹ We can understand Kauṭalya prescribing different rates of interest for traders in forests, by sea, and by land, for secured and unsecured loans.