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KATHMANDU: Loan-sharkers (individuals collecting high-interests through unfair transactions) will be imprisoned for up to 7 years and fined up to Rs 70,000.
The government has amended some Nepali Acts and included punishments for loan sharkers making unfair transactions.
The Ordinance has been published in the Nepal Gazette on Friday.
According to the amended law, preparing a document for lending money that has not been transacted, preparing a document for an amount greater than the amount transacted, and preparing a double document for the principal including the interest amount during the transaction will be taken action.
In the same way, creating a double document on the principal, not paying the amount paid by the debtor or creating a document, charging more interest than the principal amount of the loan, issuing any kind of threat, exploitation for debt collection, transferring the right of immovable property of the debtor on the basis of unfair transaction, will be imprisoned up to seven years.