Sutra 1

Devanagari script

सपादपणा धर्म्या मासवृद्धिः पणशतस्य पञ्चपणा व्यावहारिकी दशपणा कान्तारगाणाम् विंशतिपणा सामुद्राणाम् ॥ कZ_०३.११.०१ ॥

Transliteration

sapādapaṇā dharmyā māsavṛddhiḥ paṇaśatasya pañcapaṇā vyāvahārikī daśapaṇā kāntāragāṇām viṃśatipaṇā sāmudrāṇām

Translation

The lawful monthly interest is one and a quarter paṇa per hundred. The ordinary commercial rate is five per hundred; for caravan/forest-route trade, ten per hundred; for sea-trade, twenty per hundred.

Word by Word

• सपादपणा: one and a quarter pana (1.25 pana)
• Type: Noun
• Root: पण
• Form: स्त्रीलिङ्ग; प्रथमा एकवचन; संख्यावाचक-समासः (स + पाद + पण) = 1¼ पण

• धर्म्या: lawful, legally sanctioned
• Type: Adjective
• Root: धर्म
• Form: स्त्रीलिङ्ग; प्रथमा एकवचन; विशेषणम् (मासवृद्धेः)

• मासवृद्धिः: monthly interest (rate)
• Type: Noun
• Root: वृद्धि
• Form: स्त्रीलिङ्ग; प्रथमा एकवचन; मासस्य वृद्धिः (षष्ठी-तत्पुरुषः)

• पणशतस्य: of one hundred panas
• Type: Noun
• Root: पणशत
• Form: नपुंसकलिङ्ग; षष्ठी एकवचन; पणानां शतम् (षष्ठी-तत्पुरुषः)

• पञ्चपणा: five panas
• Type: Noun
• Root: पण
• Form: स्त्रीलिङ्ग; प्रथमा एकवचन; संख्यावाचक-समासः (पञ्च + पण) = 5 पण

• व्यावहारिकी: commercial / pertaining to ordinary transactions
• Type: Adjective
• Root: व्यवहार
• Form: स्त्रीलिङ्ग; प्रथमा एकवचन; विशेषणम् (मासवृद्धेः)

• दशपणा: ten panas
• Type: Noun
• Root: पण
• Form: स्त्रीलिङ्ग; प्रथमा एकवचन; संख्यावाचक-समासः (दश + पण) = 10 पण

• कान्तारगाणाम्: of those travelling through wilderness routes (overland traders)
• Type: Noun
• Root: कान्तारग
• Form: पुंलिङ्ग; षष्ठी बहुवचन; कान्तारे गच्छन्ति ये (उपपद-तत्पुरुषः)

• विंशतिपणा: twenty panas
• Type: Noun
• Root: पण
• Form: स्त्रीलिङ्ग; प्रथमा एकवचन; संख्यावाचक-समासः (विंशति + पण) = 20 पण

• सामुद्राणाम्: of maritime (sea-going) traders
• Type: Noun
• Root: सामुद्र
• Form: पुंलिङ्ग; षष्ठी बहुवचन; समुद्र-सम्बद्धाः (समुद्रयात्री/समुद्रव्यापारी)

Entities Mentioned

• borrower
• lender
• state courts
• caravan traders
• maritime traders

More Details

FAQs

What principle underlies the different interest rates across contexts?

Risk-adjusted regulation: higher uncertainty and hazard (wilderness, sea) justify higher permitted interest, while ordinary loans are capped lower.

Why would Kautilya codify interest ceilings?

To prevent usury, standardize adjudication, and keep credit flowing for trade without destabilizing households and revenues.