CHENNAI: Tamil Nadu Deputy Chief Minister Udhayanidhi Stalin on Saturday introduced a Bill to protect poor and vulnerable groups and individuals from coercive means of loan recovery by money lending entities. The Bill extends protection particularly to farmers, women and self-help groups.
At the time of the introduction of this Bill, AIADMK MLA Agri SS Krishnamurthy said the AIADMK wants to make some suggestions and modifications to the Bill.
On the objectives and reasons for bringing such legislation, the Deputy CM, in the Bill, said Tamil Nadu is a pioneer state in protecting people from usurious interest in loans by regulating the business of moneylenders and pawnbrokers.
The State has enacted the Tamil Nadu Pawn Brokers Act, 1943, the Tamil Nadu Money-Lenders Act, 1957 and the Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003.
“However, recently economically weaker and vulnerable sections of the society especially farmers, women, self-help groups, agricultural labourers, workmen, footpath vendors, dairy workers, construction workers, migrant workers often fall prey to attractive loans offered by money lending entities including digital lending platforms which lead people into unsustainable debt,” Udhayanidhi Stalin added.
The Deputy CM also said the money lending entities are resorting to unethical ways of recovering the debt from the borrowers who are already in financial distress. This sometimes instigates the borrowers to even die by suicide, thereby ruining many families and disturbing social order.