Section 96B: Limitation of interest

96B. Limitation of interest (1) Notwithstanding articles 1154 and 2202-6 of the Code Civil Mauricien, where the amount of the principal of a non-performing loan or credit facility granted in Mauritius currency on or after 1 January 2014 in respect of an individual is outstanding and the interest, in accordance with the contract between the bank or non-bank deposit taking institution and the individual, is equal to the outstanding amount of the principal, only simple interest at the prevailing Repo rate determined by the central bank shall be charged on the outstanding balance of the principal. (2) Notwithstanding section 16 of the Borrower Protection Act, no bank or non-bank deposit taking institution shall, in respect of any individual, charge penalty interest at a rate exceeding 2 per cent per annum above the normal interest rate chargeable under the contract referred to in subsection (1). (3) No penalty or interest on a penalty shall, in respect of an individual, be charged by a bank or non-bank deposit taking institution, on the early repayment of any outstanding amount of a loan taken by, or credit facility referred to in subsection (1) granted to, that individual. [S. 96B inserted by s. 3 (p) of Act 27 of 2013 w.e.f. 21 December 2013.]