State · Karnataka
Section 2 of KARNATAKA ACT NO. 15 OF 2025
requires,-
- (a)"Borrower" means an individual or a Self Help Group (SHG) or Joint Liability Group (JLG) or group of individuals who avail money in the form of a loan for any purpose from Micro Finance Institutions or Money Lending Agencies or Organizations or Lender under an agreement either orally or in writing with terms and conditions that the money shall be repaid within a certain period of time.
- (b)"Coercive Action" means the Coercive Action as explained in section 8.
- (c)"Interest" for the purposes of the terms defined under the provisions of this Act means a return on the amount lent by the Micro Finance Institutions or Money Lending Agencies or Organizations or Lender in cash or kind as the case may be, to a Borrower and includes interest charged on daily, weekly, monthly or yearly basis;
- (d)"Loan" means micro loan, small loan and an advance or hand loan whether of money or in kind such as seed, fertilizer, etc, given to the borrower at interest explicitly or otherwise.
- (e)“Lender” includes Micro Finance Institutions (MFI) or Money
| Lending | Agencies or Organizations and any | partnership | firm or | ||||
|---|---|---|---|---|---|---|---|
| person | or group | of | persons | or | digital | lending | platform whose |
principal or incidental activity is to lend money or offer financial support of whatsoever nature, in cash or kind to earn profit by charging interest on daily, weekly, monthly or yearly basis.
- (f)"Registering Authority" means the Deputy Commissioner of the concerned District: Provided that, the State Government may by notification appoint such other designated officer as Registering Authority.
- (g)"Vulnerable section of the society" means and includes farmers, women, self help group of women, agricultural labours, workmen, footpath vendors, other vendors who move from one place to other, worker working in milk dairy, construction workers, migrant workers, those group of people who are disadvantaged as compared to others mainly on account of reduced access to their basic services and the underlying determinants of health, housing sanitation etc. and the people who are economically backward, low on livelihood patterns with no regular source of income.
- (2)Words used but not defined in this Act, shall have the same meanings respectively assigned to them in the relevant Acts and rules made thereunder.