Local Government in Ancient India c9.109

c9.109

Lastly we may note that there were also money-lending corporations like our modern loan offices or banks. They used to lend not merely gold and silver, but also liquids, condiments, and grain. In the case of the former, no time limit for the liquidation of the loan was insisted upon, the matter being left to the choice of the parties. In the other case, where goods of a more perishable nature were concerned, it was necessary to fix a time limit. The recovery of the loan was the duty of the corporation as a body. An individual member trying to realize his part of the joint-loan separately is to forfeit interest (*Bṛhaspati*, 18. 19). All the other rules relating to the loans of individuals are also applicable to those of associations (ibid. 20).