History of Dharmashastra (Ancient and Mediaeval Religious and Civil Law in India) v4.c63.561.2

v4.c63.561.2

235 and others state the rule first laid down by Vasiṣṭha that it is just and proper to take every month 1/80th part of the principal lent, so that the principal is doubled in six years and eight months,⁶⁸³ and Vṛddha-Hārīta adds that double the interest stated above may be taken when there is nothing pledged to secure the debt. Yāj. and Vyāsa provide that this rate is the proper one when some thing is pledged or mortgaged by way of security. Yāj. II. 37, Manu VIII. 142 (=Nār. IV. 100), Viṣṇu Dh. S. VI. 2 provide an option that two, three, four or five per cent per month may be charged as interest in the order of the *varṇas*⁶⁸⁴ (i. e. 2 per cent per month for a brāhmaṇa debtor and so on). Yāj. II. 37 allows these rates only if there is nothing pledged by way of security. Vyāsa⁶⁸⁵ (in Par. M. III. p. 221) provided that the monthly rate of interest was 1/80th of the principal lent when a pledge or mortgage was given as against the loan, 1/60th when only a surety was offered and two per cent per month when money was lent on personal security. The Anuśāsanaparva 117.20 condemns to Hell those who take exorbitant interest. Kauṭ. prescribed (as stated in n. 688) fines for taking heavier interest than that allowed by him. Kāt.