Crackdown Demanded on Loan Sharks Exploiting the Poor in Jogulamba Gadwal

Gawal: Macherla Prakash, the district president of the All India Ambedkar Youth Association, has strongly condemned private financiers in Jogulamba Gadwal for charging excessive interest rates and exploiting the poor. He demanded immediate legal action against those imposing compound interest (chakravaddi) and mortgage-based high-interest loans (bhuchakra vaddi), which are pushing borrowers into severe financial distress.

Speaking to the media, Prakash highlighted that these private finance companies are taking advantage of people’s urgent financial needs, offering quick loans but later trapping them in cycles of exorbitant interest rates. Many individuals who fail to repay these high-interest loans are losing their properties, and in extreme cases, even their lives due to unbearable pressure and harassment by moneylenders.

He criticized private financiers for violating RBI regulations and government norms, stating that their unlawful interest rates exceed the legally permissible limits. He further pointed out that the aggressive recovery tactics of these financiers are leading to land confiscations, loss of livelihoods, and even suicides among borrowers.

Prakash urged district authorities to take strict action against these illegal financial practices. He demanded that police register cases against moneylenders charging interest beyond the permissible limits and impose severe penalties on them. "No lender should charge even a single rupee more than the legally allowed interest rate," he emphasized.

Calling for government intervention, Prakash stressed that strict monitoring and enforcement are necessary to protect the poor from financial exploitation. He warned that if immediate action is not taken, more families in Jogulamba Gadwal would continue to suffer at the hands of these predatory lenders.