If the agreed rate is exceeding 15% it is against the Act Prohibiting Excessive interest Rate of 1932.And As a result, the agreed interest rate is void. The creditor will get only the interest rate is void. The creditor will get only the only the interest rate during default 7.5 % per year Note that excessive interest that has been paid by the debtor cannot be claimed back under article 401 In practice, small lenders do it at random, some require as high as 20% per day. No one complains about that, and as a result no any police arrest them.
Money interest rates are mentioned in a few places .The first and very important place is article 7 that says :”When interest is to be paid and the rate is not fixed by an agreement or an express provision of law, the rate shall be 7.5 % per year.” Suppose you have been given a sum of money by a friend to buy some thing for him it because you spent it for yourself . Under article 811, you have to pay back the money to your friend together with interest under the law of agency .But the rate of interest is not fixed in the agreement between you and him. So the rate of 7.5 % per year under article 7 shall apply
Money interest rates are mentioned in a few places.The first and very important place is article 7 that says :”When interest is to be paid and the rate is not fixed by an agreement or an express provision of law, the rate shall be 7.5 % per year.” Suppose you have been given a sum of money by a friend to buy some thing for him it because you spent it for yourself .
