Credit Union Act, 1997
Interest on loans. |
38.—(1) A credit union may charge interest on loans made to its members under section 35 subject to the following conditions— | |
(a) the interest on a loan shall not at any time exceed one per cent. per month on the amount of the loan outstanding at that time; | ||
(b) the interest on a loan shall in every case include all the charges made by the credit union in making the loan; | ||
(c) the rate of interest charged on any class of loans granted at a particular time shall be the same for all loans of the class. | ||
(2) If a credit union knowingly charges or accepts interest on a loan at a rate greater than that permitted under this section, it shall be guilty of an offence and— | ||
(a) all the interest agreed to be paid by the member shall be deemed to have been waived by the credit union; and | ||
(b) any interest paid on the loan shall be recoverable summarily by the member (or his personal representative) as a simple contract debt. | ||
Other transactions |