Money lenders under scanner, pressure on Andhra government to provide alternative means to loans

Hyderabad: In the last few weeks, the call money racket in Andhra Pradesh has become synonymous with harassment and exploitation of borrowers. And to keep a check on the private money lending business, the state Assembly passed the Money Lenders Bill.

The Bill states that money lending cannot be done without a license and accounts of money lenders will be audited at least once a year. Money lenders can be jailed for charging a rate of interest higher than that is being shown in their account.

Vijaywada Commissioner of Police Gautam Sawang said, "People should not sign on blank cheques and papers and give away their rights. They also have to be careful."

But not all are happy with the crackdown. For those who were in dire need of cash, loans were just a phone call away. Small business owners like Rajeshwari who used to be turned away by banks are now being shown the door by money lenders too.

Rajeshwari, a fruit vendor, said: "We would get immediate money from call money lenders. Now due to call money issue we are not getting money. Our business is suffering."

Another fruit vendor Shrinivas Reddy said, "We have been taking money from call money lenders only. Where do we go now. The government should help us in getting loans."

With money lenders under the scanner, the pressure is on the Andhra Pradesh government to provide alternative means to loans.