Nizamabad:Authorities in Nizamabad and Kamareddy districts are intensifying efforts to curb rampant illegal finance activities marked by exorbitant interest rates and harassment of borrowers. Alleged moneylenders in multiple towns and mandal headquarters — including Nizamabad, Armoor, Bodhan, Kamareddy, and Banswada — reportedly charge interest rates of up to Rs 2-3 for every Rs 100 lent per month.
In many cases, motorbikes, cars, house sites, and agricultural land are taken as surety, with some borrowers resorting to extreme measures, such as contemplating suicide, due to relentless pressure from lenders. If they fail to repay, these surety properties are sold at heavily discounted prices, causing severe financial distress.
According to local sources, people often turn to these illegal financiers for urgent needs such as medical treatments, marriages, and other family expenses. The loans range from Rs 25,000 to Rs 10 lakh, depending on the borrower’s financial and social background.
One such borrower, Hanumanthu, a private employee in Banswada, recounted his experience: “I pledged my motorcycle, worth around Rs 30,000, as collateral and received Rs 15,000. The moneylenders also took my signatures on blank papers and a vehicle sale agreement,” he told Deccan Chronicle.
In a recent raid, the task force police in Armoor uncovered a large number of motorcycles in a moneylender’s warehouse and seized the vehicles, registering a case against the lender. Officials note that not only private businessmen but also government employees — including some police personnel and teachers — are involved in these illegal financial dealings.
While official licences from revenue authorities are required to run finance businesses, many operators avoid doing so to evade taxes and scrutiny from the Income-Tax department. Transactions worth crores of rupees are believed to be happening clandestinely across rural and urban areas. Locals are urging authorities to impose stringent measures to end these unauthorised financial practices and protect vulnerable borrowers.
