Report of the Royal Commission on Labour in India

Bibliographic data

Monograph

Identifikator:: 1850495947

URN:: urn:nbn:de:zbw-retromon-233603

Document type:: Monograph

Title:: Report of the Royal Commission on Labour in India

Place of publication:: London

Publisher:: His Majesty's Stationery Off.

Year of publication:: 1931

Scope:: xviii, 580 S.; graph. Darst., Kt.

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIII. - Indebtedness

Collection:: Economics Books

INDEBTEDNESS. 9295 fact in one case the rate of interest reported was as high as 225 per cent.” The prevailing rates of 12 to 24 per cent are low by comparison with other places, and may, we think, be attributed to the fact that a large proportion of the workers reside permanently in Ahmedabad or the adjacent areas. The enquiry made for us into the standard of living in certain towns of the Central Provinces states ‘ Rates of interest on debts show that 25 per cent per annum is the most usual rate charged, and by far the largest amount of loans is incurred at that rate. But interest as high as 150 per cent, 5.e., two annas per rupee per month is not unknown and is generally exacted by the Kabuli money-lenders. The commonest term of such loan is the sawai system (i.e., with 25 per cent interest) which requires that 1} times the money borrowed should be repaid with- in one year, and if it is not repaid within the stipulated time, compound interest is charged.” As already observed, the system last described involves the payment of interest at a rate much larger than the apparent one. The Bombay Working Class Budgets Enquiry of 1921-23 gave the usual rate of interest as one anna in the rupee per mensem ; a recenf enquiry which was much more limited in scope states While in a few cases no interest had to be paid on the money borrowed, at least in one case the rate of interest was as high as 150 per cent. In 29 per cent of the cases the rate of interest varied from 72 to 78 per cent and in 19 per cent of the cases it varied from 24 to 30 per cent.” This relates to families ; of 49 single persons in debt, the report observes, ““ The most usual rate of interest is from 18 to 30 per cent, although in 14 cases it was as high as 75 per cent.” The enquiries made for us into the standard of living in the United Provinces give 75 percent as the com- monest rate at Cawnpore, the next commonest rate being 37} per cent, In Lucknow and Gorakhpur, the higher rate is exceptional ; this appears to be due in part to a number of the workers being members of co-operative societies. The enquiry made for us intc the standard of living of jute mill workers in Bengal gives the average rate of Interest at 78 per cent. The report on this enquiry and the evidence given to the Bengal Banking Enquiry Committee by the Indian Jute Mills Association both mention as the highest rate 325 per cent annually (one anna in the rupee weekly) on small sums. Rates in the Punjab Appear to be much lower, but particulars are not available to distin- guish loans by money-lenders from loans by co-operative societies, and here, as in other places, low rates seem to be associated with repay- Ment by monthly instalments. The enquiry: made into the standard of living on the South Indian Railway states “ More than 80 per cent of the loans are obtained from money-lenders whose usual rate of interest ranges from one anna in the rupee or 75 per cent to two annas in the fupee or 150 per cent.” Payments on Debt. Actual payments are seldom on the scale which strict fulfilment of the terms of the loan would require. The prompt repayment of the “apital is not usually desired by the money-lender ; he prefers to remain a creditor and receive interest, and in most cases he does not receive

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