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Nitin   10 September 2026

Illegal money lender

I had borrowed some 5 lakh from one money lender some at 10% some at 15% monthly interest. Till now I have paid him more than 10 lakhs within an year. Now he told I still have to pay him 2 lakhs. I did not had that much money so he told to pay interest. I was paying 20K per month for 2 3 months later on it became difficult for me to pay interest also. So the lender asked for interest on interest that was 5k per month. Later on I was not able to pay that also. We had lot of verbal arguments over me not being able to pay. He threatnes to harm this and that.

Last month he come up with one amount 5 lakhs 50k to be paid on1st Oct and that Diwali is coming so anyhow he needs amount. I don't have any amount to pay him and I am worried also he may do some harm.

I heard 5 6 months ago there was crackdown on such money lenders and the authorities was providing relief to affected parties. I don't know which is that authority which can protect people like me. I sent ananoymous mails to IG, SP, Collector, District Registrar & Collector of Stamps and CP but no one took any action. 

Please let me know any competent authority that can take action on such money lender and save many like me.

 

 



Quick Summary
This discussion details a harrowing experience with an illegal money lender who has charged exorbitant monthly interest rates, including interest on interest. Despite paying over double the initial loan amount, the lender continues to demand more and has resorted to threats. The individual is seeking information on competent authorities who can provide protection and take action against such lenders, as previous anonymous complaints have gone unanswered. Advice suggests lodging a criminal complaint with the police, escalating to higher authorities if necessary, or approaching a judicial magistrate.

 4 Replies

T. Kalaiselvan, Advocate (Advocate)     10 September 2026

If he poses threat to your life or property then you can very well lodge a criominal complaint against him and also you can mention about his demand for exorbitant interest, criminal intimidation and all other offfences he committed. 

If the local police refuse or do not cooperate then you may approach the Higher police officer with a similar complaint and even if that fails then you can approach jurisdictional judicial magistrate court with a private complaint 

P. Venu (Advocate)     10 September 2026

Such money-lending at exhorbitant rates of interest, that too, without licence is prohibited activity. Every State has notified laws impllement the same. You need to take action in accordance with the law in force in your State.

The authorities cannot take any action based upon anonymous or pseudonymous complaints and petitions.

Dr. J C Vashista (Advocate )     11 September 2026

File a police complaint against money lender through a local prudent lawyer.

Nitin   11 September 2026

Sir if not anonymous which authorities can I reach out?

Thank you experts for responding.


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