ऋणादानप्रकरणम् (याज्ञवल्क्यस्मृतिः)

Cases of Loans

ऋणादानं in case of a person, who wants to take loan –

1	What kind of Loan should be given?
2	What kind of loan should not be given?
3	Which officer is eligible to grant loan?
4	When should the loan be paid back?
5	How should the loan be paid back?

ऋणादानं in case of a person, who gives loan –

1	Giving loan.
2	Taking back the amount of loan.

Interest to be paid every month on the loan taken on mortgage = 1/80 = 0.0125% = 1.25 per 100

Interest to paid every month on the loan taken on mortgage (for hundred)
1	To be paid by a Brahmin	2
2	To be paid by a Kshatriya	3
3	To be paid by a Vaisya	4
4	To be paid by a Sudra	5

Types of वृद्धिः (Interest)
1	कालिकवृद्धिः	Interest is taken every month
2	कायिकवृद्धिः	Interest is taken every day
3	कारितवृद्धिः	The debtor accepts to pay higher rate of interest
4	चक्रवृद्धिः	Interest is charged on the payable interest.

Higher interest
1	Those who live in the forests	10%
2	Those who do travel across the seas	20%
3	Voluntary	Any rate of interest

Other types of interest
1	अनाकारितम्	Sometimes, a hand loan may be given without being requested.	There is no interest till 6 months.  General interest rate is applied after 6 months.
2	याचितकम्	It is a hand loan given on the request of a party.	Those who go to foreign land have to pay interest after 1 year.
			Those who do not pay back the amount on demand and stay in foreign land have to pay interest from the 3rd month.
			Those who stay back in the native place but do not pay back the amount on demand have to pay the interest from the 1st month.

Other cases of special interest
1	पशुस्त्री	If a person is unable to feed his cows and temporarily gives them to somebody, the calves born during that period belong to that somebody.
2	रसः	If oil and ghee etc., are bought from the vendor and the price is not paid for a long time, the principal amount must be paid back with an interest of 8 times to the general interest.
3	वस्त्रम्	If cloth/clothes are bought from the vendor and the price is not paid for a long time, the principal amount must be paid back with an interest of 4 times to the general interest rate.
4	धान्यम्	If grains and cereals etc. are bought from the vendor and the price is not paid for a long time, the principal amount must be paid back with an interest of 3 times to the general interest rate.
5	हिरण्यम्	If gold is bought from the vendor and the price is not paid for a long time, the principal amount must be paid back with an interest of 2 times to the general interest rate.

How can a Creditor get back the amount of the loan given to the creditor?
1	धर्ममार्गः	Formal	Soft dealing
2	व्यवहारमार्गः	Presentation of proof	Exhibiting agreement text, and by calling witness
3	भवमार्गः	Pretext	Opting cunning ways
4	आचरितमार्गः	Emotional Blackmail	I will fast if you don’t pay back my amount etc.
5	बलमार्गः	Force	Exercising Force / Compelling

Order of paying back the loans taken
1	General Case	First taken – First pay back Then, pay the king.
2	Special Case	First pay back the loans taken from Brahmins Next pay back the loans as if in General Case. Then, pay the king.

When the Creditor wants the help of the King to get back the amount of loan given
1	Payable amount (Principal + Interest) will be decided according to justice.
2	Debtor will be forced to pay an extra amount of 10% on the payable amount to the Creditor. {(Principal + Interest + 10%)}
3	The debtor should pay 10% of the Payable amount to the King separately. {(Principal + Interest) 10%}
4	The Creditor should pay the king 5% of the amount he received from the Debtor. {(Principal + Interest + 10%) 5%}

Insolvency Cases (परिक्षीणता)
1	If a Low-born is bankrupt	The low-born should do the work assigned to him by the high born creditor, till the amount of loan is considered to be equalled.
2	If the High-born is bankrupt	The high-born should be given opportunity to pay back slowly.

Amount given to मध्यस्थः
1	If the creditor refuses to take his amount back, the debtor can deposit of the amount at मध्यस्थः। Later, the debtor need not pay interest any more.
2	However, if मध्यस्थः refuses to handover the amount to the creditor, the debtor has to pay the interest.

Loan(s) taken for the sake of the family
1	Head of the family is responsible
2	If the Head of the family is deceased, then, all his heirs (रिक्थी) who have shared his property are responsible.

If loan is not taken for the sake of the family
1	A woman is not responsible for the loan taken by any other person.
2	A father is not responsible for the loan taken by any other person.
3	A husband is not responsible for the loan taken by his wife.

A son need not pay the loan taken by his father
1	If the amount is not spent for the sake of the family.
2	If the amount is spent for drinking wine, for gambling etc.

Loan taken by the following woman must be paid back by her husband because; it is for the sake of their occupation.
1	गोपयोषित्	Wife of a cowherd
2	शौण्डिकयोषित्	Wife of a wine-seller.
3	शैलूषयोषित्	Wife of a cloth-colour dyer.
4	रजकयोषित्	Wife of a washer man.
5	व्याधयोषित्	Wife of a hunter.

Responsible/Non responsible for paying back the loan taken by a disappeared person
1	Disappearance = No return from foreign land/Demise/Suffering from chronic disease.
2	Sons (पुत्राः) are responsible to pay back.
3	Grandsons (पौत्राः) are responsible to pay back.
4	Minors (अप्राप्तव्यवहाराः) are not responsible to pay.
5	The sons who have shared the property of the disappeared are responsible to pay.
5	अनन्याश्रितद्रव्यः (The son, who has not gained any) of the disappeared is present is responsible to pay.
6	If the disappeared has no children, रिक्थिनः (Those who have shared the property) of the disappeared are responsible to pay.
7	One, who marries the wife of the disappeared, is responsible to pay.