Hindu Law and Custom (Recht und Sitte) c8.83

c8.83

High rates of interest at the present day. Even at the present day the rate of interest is still very high, particularly in the country. Thus in Bengal the farmers have to pay 50 p. c. for advances in corn at the time of sowing to the Mahājan (Mahājana) “village banker” corresponding to the Kusidin or Vārdhuṣin of the Smṛtis ; as laid down in the Smṛtis, the interest is paid in kind and the Mahājan has the right of a mortgage bottomry on the corn reaped. 2 p. c. per month is allowed for advance in money¹. In Behar where the ancient expression Mul for “principal” (Mūla), Khaduka for “debtor” (Khādaka), Udhār (Uddhāra) for loans on which no interest can be charged are still in evidence, there is a whole series of different expressions which vary from province to province to designate the interest for seed-corn to be paid in kind after harvest and for every grade of the rate of interest, which here too often amounts to 50 p. c.² According to Steele in Bombay, 1/2—1 p. c. per month were charged for loans on security from well-to-do farmers, but it is also seen in Puna and Southern Mahārāṣṭra that a farmer at the end of the year has to return 1 1/4 times as much or even double the amount of the grain lent to him. There is a particular word (dāmupat) in Mahrathi to designate the principal doubled by interests ; when this doubling takes place, the interest as a rule, as laid down in the Smṛtis, ceases to accumulate, though triplication (tripat) is allowed in the case of the loan of grains. Small traders have to pay sometimes even 6 1/4 per cent. per week and the rate