Manusmriti: The Laws of Manu

151. In money transactions interest paid at one time (not by installments) shall never exceed the double (of the principal); on grain, fruit, wool or hair, (and) beasts of burden it must not be more than five times (the original amount).

152. Stipulated interest beyond the legal rate, being against (the law), cannot be recovered; they call that a usurious way (of lending); (the lender) is (in no case) entitled to (more than) five in the hundred.

153. Let him not take interest beyond the year, nor such as is unapproved, nor compound interest, periodical interest, stipulated interest, and corporal interest.

154. He who, unable to pay a debt (at the fixed time), wishes to make a new contract, may renew the agreement, after paying the interest which is due.

155. If he cannot pay the money (due as interest), he may insert it in the renewed (agreement); he must pay as much interest as may be due.

156. He who has made a contract to carry goods by a wheeled carriage for money and has agreed to a certain place or time, shall not reap that reward, if he does not keep to the place and the time (stipulated).

157. Whatever rate men fix, who are expert in sea-voyages and able to calculate (the profit) according to the place, the time, and the objects (carried), that (has legal force) in such cases with respect to the payment (to be made).

158. The man who be- comes a surety in this (world) for the appearance of a (debtor), and produces him not, shall pay the debt out of his own property.

159. But money due by a surety, or idly promised, or lost at play, or due for spirituous liquor, or what remains unpaid of a fine and a tax or duty, the son (of the party owing it) shall not be obliged to pay.

160. This just mentioned rule shall apply to the case of a surety for appearance (only); if a surety for payment should die, the (judge) may compel even his heirs to discharge the debt.

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