The Islamabad Capital Territory Prohibition of Interest on Private Loans Act, 2023
The Islamabad Capital Territory Prohibition of Interest on Private Loans Act, 2023 was enacted to repeal The West Pakistan Private Money Lenders Ordinance,1960 and to Islamabad Capital territory only. The Act aims at restricting the commercial and private practice of charging interest through lending money. The act limits the prohibition of private and commercial interest-based businesses. Under the Act, individuals, groups, or people intentionally and willfully assisting the money lender to charge interest on the money lent shall be liable for imprisonment and a fine. Whoever on his behalf or on behalf of someone else molests the borrowers intending to make them pay back the interest-based debt shall also be liable for imprisonment and a fine. Through the commencement of this Act, any obligation on the borrower to pay the subsisting interest on the loan is extinguished. Where the borrower has paid the total amount exceeding the principal amount due to interest, the trial court shall order the money lender to return such excess amount to the borrower.
