SHILLONG: The Meghalaya Cabinet on Tuesday approved the Meghalaya Money Lenders and Accredited Loan Providers Bill, 2026, paving the way for a legal framework to regulate private money lending and protect borrowers from unfair lending practices.
The proposed legislation seeks to bring private money lenders under a formal regulatory system by requiring them to register with the respective Deputy Commissioners. The move is aimed at increasing transparency in money lending activities across the state and ensuring greater accountability.
According to the government, the new law will help curb exploitative lending practices, including charging exorbitant interest rates, while offering better protection to people who rely on private loans. The Bill also introduces a mechanism to regulate accredited loan providers, making it easier for authorities to monitor lending activities and take action against unauthorised or unlawful practices. The Cabinet said the legislation is intended to promote responsible lending and strengthen financial safeguards for borrowers, particularly those who depend on private lenders for emergency or short-term financial needs.
The approval comes as part of the Cabinet’s decisions taken during its meeting on Tuesday. The Bill will now have to be introduced in the Meghalaya Legislative Assembly before it can become law. Once enacted, the legislation is expected to establish a clear legal framework governing private money lending in Meghalaya, with the objective of improving transparency, protecting borrowers and discouraging exploitative financial practices.