{ "schema_version": "qanun-law-text/1", "id": "punjab-code-c21ca7097e22a26b", "title": "PUNJAB PROHIBITION OF INTEREST ON PRIVATE LOANS ACT 2022", "source_collection": "Punjab", "content_kind": "stored_law_text", "content_extent": null, "source_url": "https://punjabcode.punjab.gov.pk/en/show_article/VmYGMAM8V2NQMA--", "version": null, "source_snapshot": "2026-08-06T16:59:28Z", "legal_status": "not independently verified", "text_quality": "Complete stored UTF-8 TXT file recovered byte-for-byte from owned Drive. Source transcription retained verbatim; legal completeness, OCR accuracy and current consolidation unverified.", "text_sha256": "d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4", "source_sha256": "d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4", "text_version_id": "law:punjab-code-c21ca7097e22a26b:sha256:d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4", "quality_flags": [], "encoding": "UTF-8", "text": "THE PUNJAB PROHIBITION OF INTEREST ON PRIVATE \r\nLOANS ACT 2022 \r\n(XV of 2022) \r\nCONTENTS \r\n1. Short title, extent and commencement. \r\n2. Definitions. \r\n3. Prohibition of Private Money Lending. \r\n4. Punishment for Abetment. \r\n5. Punishment for Molestation. \r\n6. Complaint. \r\n7. Liability to pay interest on debt to stand extinguished. \r\n8. Offences to be tried by Court. \r\n9. Cognizance of offences. \r\n10. Adjustment of principal amount. \r\n11. Recovery of sums. \r\n12. Appeal. \r\n13. Power to deposit in Court money due on loan. \r\n14. Act to override other laws, etc. \r\n15. Indemnity. \r\n16. Power to make rules. \r\n17. Interpretation. \r\n18. Repeal. \r\n \r\n \r\n \r\n \r\n \r\nTEXT \r\n \r\n1\r\nTHE PUNJAB PROHIBITION OF INTEREST ON PRIVATE LOANS ACT \r\n2022 \r\n(XV of 2022) \r\n [23 August 2022] \r\nAn \r\nAct \r\nto prohibit the business and practices of private money-lending and advancing loans \r\nand transactions based on interest. \r\nWHEREAS the injunctions of Islam as laid down in the Holy Quran and Sunnah have \r\nexplicitly and unequivocally prohibited charging interest on loans and have declared \r\nwar against those who do not abandon interest; \r\nAND WHEREAS the Constitution of the Islamic Republic of Pakistan obliges the State \r\nto take steps to enable the Muslims of Pakistan, individually and collectively, to order \r\ntheir lives in accordance with the fundamental principles and basic concepts of Islam \r\nand to provide facilities whereby they may be enabled to unders tand the meaning of \r\nlife according to the Holy Quran and Sunnah; \r\nAND WHEREAS it is expedient to make a comprehensive Legislation on the subject \r\nfor covering all the aspects of the mischief of private money lending and matters akin \r\nthereto; \r\nBe it enacted by Provincial Assembly of the Punjab as follows: \r\n1. Short title, extent and commencement. – (1) This Act may be called the \r\nPunjab Prohibition of Interest on Private Loans Act, 2022. \r\n(2) It extends to the whole of the Punjab. \r\n(3) It shall come into force at once. \r\n2. Definitions.– In this Act, unless there is anything repugnant in the subject or \r\ncontext– \r\n(a) “abetment” has the same meaning as assigned to it in Section 107 of \r\nthe Pakistan Penal Code 1860 (Act XLV of 1860); \r\n(b) “borrower” or debtor” means a person to whom a loan is advanced; \r\n(c) “Code” means the Code of Criminal Procedure, 1898 (Act No . V to \r\n1898); \r\n(d) “financial institution” includes the State Bank of Pakistan, a commercial \r\nor investment bank, a leasing company, a modaraba or other concerns, \r\nso defined in terms of section 2(a) of the Financial Institutions (Recovery \r\nof Finances) Ordinance, 2001 (Ordinance No. XLVI of 2001); \r\n(e) “Government” means the Government of the Punjab; \r\n \r\n1This Act was passed by Provincial Assembly of the Punjab on 16 August 2022; and assented to by the Governor of the Punjab \r\non 22 August 2022; and was published in the Punjab Gazette (Extraordinary), dated: 23 August 2022, pp. 219-222. \r\n \r\n \r\n(f) “interest” includes any amount, big or small, over the principal, i n a \r\ncontract of loan or debt, regardless of whether the loan is taken for \r\npurpose of consumption or for some production activity, whether the \r\nsame is charged or sought to be recovered specifically by way of interest \r\nor otherwise, or found so to be recoverable by a competent Court; \r\n(g) “Interest based transactions” include transactions: \r\n(i) where differences in prices are exchanged without any intention \r\nof exchange of goods by the parties involved; or \r\n(ii) where sale is made on credit for higher price and re purchase of \r\nthe same for lower price on cash, basis by the original owner in a \r\ngiven transaction; or \r\n(iii) where two prices are stipulated in the same deal that is to charge \r\nlower or discounted price for shorter period or given listed price , \r\nfor longer period by the buyer in a given transaction. \r\n(h) “loan or debt” means an advance whether of money or in kind, where \r\nthe repayment is guaranteed on demand or after a specified period. \r\n(i) “molest”-a person shall be deemed to molest another person if he– \r\n(i) obstructs, or uses violence or criminal force to or criminally \r\nintimidates, such other person; \r\n(ii) Interferes with any property owned or used by him or deprives \r\nhim of, or hinders him in the use of any such property; and \r\n(iii) Does any act calculated to i ntimidate the members of the family \r\nor such other person; \r\n(j) “money lender” means a person, other than the Federal or Provincial \r\nGovernment or a financial institution, who lends money on interest or \r\ndeals in interest based transactions and includes any person appointed \r\nby him to be in charge of a branch office or branch offices or a liaison \r\noffice or any other office by whatever name called, of his principal place \r\nof business and a pawn broker who carries on the business of taking \r\ngoods and chattels in pawn or pledge for a loan, offering payday loans, \r\nsmall personal loans or credit chits. \r\n Explanation: Where a money lender is resident outside the province, \r\nthe agent of such person resident in the Province, shall be deemed to \r\nbe the money lender in respect of that business for the purposes of this \r\nAct. \r\n(k) “Prescribed” means prescribed by rules under this Act; \r\n(l) “principal amount” in relation to loan means the amount actually lent to \r\nthe debtor; · \r\n(m) “Province” means the Province of the Punjab; and \r\n(n) “Rules” means rules made under this Act. \r\n \r\n3. Prohibition of Private Money Lending. – (1) No money lender either \r\nindividually or in group of persons shall lend money for any moveable or immoveable \r\n \r\n \r\ngood or in kind or any other purpose or advance loan to any person for the purpose of \r\nreceiving interest thereon, nor shall carry on an interest based transaction in the \r\nProvince. \r\n(2) Whoever contravenes the provisions of sub -section (1) shall be \r\npunished with imprisonment of either description which may extend to ten years but \r\nshall not be less than three years and shall also be liable to fine not exceeding one \r\nmillion rupees. \r\n \r\n4. Punishment for Abetment. – Whoever intentionally and willfully abets , \r\nengages, assists or aids the money lender in lending money or in recovery of interest \r\nor in interest based transaction in contravention of sub -section (1) of section 3 shall \r\nalso be liable to the same punishment as provided in sub -section (2) of section 3 of \r\nthis Act. \r\n \r\n5. Punishment for Molestation. – Whoever molests any b orrower or debtor , \r\nwhether on his own behalf or on behalf of anybody else with intention to force such \r\nborrower or debtor to pay back any loan or debt or any part thereof or any interest \r\nthereupon, shall be punished with imprisonment of either description for a term which \r\nmay extend to five years and shall also be liable to fine up to five hundred thousand \r\nrupees. \r\n \r\n6. Complaint.– A justice of peace shall, within three days on receipt of any \r\napplication or complaint with regard to the commission of an offenc e under this Act , \r\norder the local police to register a case against such person or group of persons. \r\n \r\n7. Liability to pay interest on debt to stand extinguished. – On the \r\ncommencement of this Act, every obligation of any debtor or borrower to pay interest \r\non debt or such part of interest shall stand extinguished. \r\n \r\n8. Offences to be tried by Court.– No Court inferior to that of Judicial Magistrate \r\nof the first class shall try an offence under this Act. \r\n \r\n9. Cognizance of offences.– Notwithstanding anything to the contrary contained \r\nin the Code or any other law for the time being in force an offence under this Act shall \r\nbe cognizable, non-compoundable and non-bail able. \r\n \r\n10. Adjustment of principal amount.– The trial court, if it is proved that the money \r\nlender committed an offence under this Act, shall order that the interest already p aid \r\nto the money lender is considered as payment towards the principal amount. \r\nProvided that where the amount of interest paid by a borrower e xceeds the \r\nprincipal amount, the court shall order the money lender to return such excess amount \r\nto the borrower. \r\n \r\n11. Recovery of sums.– Where penalty imposed on money lender under this Act \r\nor the amount ordered to be returned, is not paid– \r\n(a) the Court may order to recover the amount so pay able by selling the \r\nassets belonging to such person; and \r\n \r\n \r\n(b) in case the amount cannot be recovered from such person in the manner \r\nprovided in clause (a) the Court may prepare and sign a certificate \r\nspecifying the amount due from such person and send it to the collector \r\nof the district in which such person owns any property or resides or \r\ncarries on business ; and the collector of the district on receipt of such \r\ncertificate shall proceed to recover from the said person the amount \r\nspecified in the certificate as if it is an arrear of land revenue. \r\n \r\n12. Appeal.– Save as provided, any person aggrieved by any decision given, \r\nsentence passed or order made by the trial court under this Act, may within thirty days \r\nof such decision, sentence or order prefer an appeal under the provisions contained \r\nin chapter XXXI of the Code. \r\n \r\n13. Power to deposit in Court money due on loan. – (1) Where any lender, \r\nwhether a money lender as defined in this Act or otherwise, refuses to accept the \r\nwhole or any portion of the money or other property due in respect of his loan without \r\npayment of interest, the debtor may deposit the said money or property into the Court \r\nhaving jurisdiction to entertain a suit for recovery of such loan and apply to the Court \r\nrecord full or part satisfaction of the loan, as the case may be. \r\n(2) Where any such application is made, the Court shall, after due inquiry , \r\npass orders recording full or part-satisfaction of the loan as the case may be. \r\n(3) The procedure laid down in the Code of Civil Procedure 1908 (Act No. \r\nV of 1908), for the trial of suits shall, as far as may be, apply to applications under this \r\nsection. \r\n(4) An appeal shall lie from an order passed by a Court under sub -section \r\n(2) within thirty days excluding the time for obtaining a certified copy of the order as if \r\nsuch an order relates to the execution, discharge or satisfaction of a decree within the \r\nmeaning of section 47 of the Code of Civil Procedure, 1908 (Act No. V of 1908). \r\n \r\n14. Act to override other laws, etc .– The provisions of this Act shall have effect \r\nnotwithstanding anything contained in any other law for the time being in force or in \r\nany instrument having effect by virtue of any such law. \r\n \r\n15. Indemnity.– No suit, prosecution or other legal proceeding shall lie against any \r\nperson for anything which is in good faith done or intended to be done in pursuance \r\nof this Act or of any rules made thereunder. \r\n \r\n16. Power to make rules. – Government may make rules for carrying out the \r\npurposes of this Act. \r\n \r\n17. Interpretation.– In the interpretation and application of the provisions of this \r\nAct, and in respect of matter ancillary or akin thereto, the Court shall be guided by the \r\ninjunctions of Islam as laid down in the Holy Quran and Sunnah. \r\n \r\n18. Repeal.– The Pun jab Prohibition of Private Money Lending Act 2007 (VI of \r\n2007) is hereby repealed.", "passage_offset_convention": "zero-based Unicode code points and UTF8 bytes; end exclusive", "passages": [ { "passage_id": "law:punjab-code-c21ca7097e22a26b:sha256:d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4:chars-0-1777:05201ff8a63b4331ef3ffb8f6e22ccb09ba1086590f8ff52aea42d67b57a16d1", "character_start": 0, "character_end": 1777, "utf8_byte_start": 0, "utf8_byte_end": 1777, "passage_sha256": "05201ff8a63b4331ef3ffb8f6e22ccb09ba1086590f8ff52aea42d67b57a16d1", "reader_fragment": "p-0-1777-05201ff8a63b4331" }, { "passage_id": "law:punjab-code-c21ca7097e22a26b:sha256:d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4:chars-1777-3559:91c7c70b1a4778219cf4ea01a715f2eb4c6be74d967dae0b48c751c44fc86e47", "character_start": 1777, "character_end": 3559, "utf8_byte_start": 1777, "utf8_byte_end": 3595, "passage_sha256": "91c7c70b1a4778219cf4ea01a715f2eb4c6be74d967dae0b48c751c44fc86e47", "reader_fragment": "p-1777-3559-91c7c70b1a477821" }, { "passage_id": "law:punjab-code-c21ca7097e22a26b:sha256:d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4:chars-3559-5313:d43bbd0071ac9f8e99076b32a742ccee69e1ac8224aad3d5c18a951caf328447", "character_start": 3559, "character_end": 5313, "utf8_byte_start": 3595, "utf8_byte_end": 5367, "passage_sha256": "d43bbd0071ac9f8e99076b32a742ccee69e1ac8224aad3d5c18a951caf328447", "reader_fragment": "p-3559-5313-d43bbd0071ac9f8e" }, { "passage_id": "law:punjab-code-c21ca7097e22a26b:sha256:d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4:chars-5313-7091:ae06f906e38c547c5f4040a936b1b74aa7ce986b08540d01d37023693f9ec6ca", "character_start": 5313, "character_end": 7091, "utf8_byte_start": 5367, "utf8_byte_end": 7166, "passage_sha256": "ae06f906e38c547c5f4040a936b1b74aa7ce986b08540d01d37023693f9ec6ca", "reader_fragment": "p-5313-7091-ae06f906e38c547c" }, { "passage_id": "law:punjab-code-c21ca7097e22a26b:sha256:d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4:chars-7091-8836:a620ef0a41ff4bf036606daf75aecac5bd9a85606d75bef1111468e4e5fe19f4", "character_start": 7091, "character_end": 8836, "utf8_byte_start": 7166, "utf8_byte_end": 8923, "passage_sha256": "a620ef0a41ff4bf036606daf75aecac5bd9a85606d75bef1111468e4e5fe19f4", "reader_fragment": "p-7091-8836-a620ef0a41ff4bf0" }, { "passage_id": "law:punjab-code-c21ca7097e22a26b:sha256:d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4:chars-8836-10626:deeea605530679f429e13b4eb88567945ed6e9bbbccf4b3ea8425f350af2658f", "character_start": 8836, "character_end": 10626, "utf8_byte_start": 8923, "utf8_byte_end": 10719, "passage_sha256": "deeea605530679f429e13b4eb88567945ed6e9bbbccf4b3ea8425f350af2658f", "reader_fragment": "p-8836-10626-deeea605530679f4" }, { "passage_id": "law:punjab-code-c21ca7097e22a26b:sha256:d44aeb1d74d1f0ed512cafe11eb3068638e9269a7453bbb6d2835cbc77a64ed4:chars-10626-11366:cee2a531426ffe42360784cbb7915fe0a520830b355c10a6d71d1fb59bf93f85", "character_start": 10626, "character_end": 11366, "utf8_byte_start": 10719, "utf8_byte_end": 11467, "passage_sha256": "cee2a531426ffe42360784cbb7915fe0a520830b355c10a6d71d1fb59bf93f85", "reader_fragment": "p-10626-11366-cee2a531426ffe42" } ] }