Administrative System of the Marathas c18.s24.9

c18.s24.9

It is needless to point out that mere legal suppression of usury is useless. So long as there is a need for capital, men in want will borrow at any interest when money is not available on reasonable terms. The tagai removed this need. It was practically a state loan although the Mamlatdar had to provide for it out of his own resources. The Rayat was not oppressed for interest. Sometimes he got the loan without any interest and frequently easy terms of payment were granted. In the year 1750-51, Ragho Govinda was desired to advance Rs. 1,500 as tagai loan to Kasba Mukhde, in Pargana Patode and he was told that the money was to be recovered in two years.³⁴ No mention of interest is made in the letter. But in another document we find that while the current rate of interest was 75 per cent. the government reduced the interest to 25 p. c. on tagai advanced to the Rayats of Prant Rajpur.