Chennai

Ramadoss wants ban on online ‘usurious’ loan companies

PMK founder S. Ramadoss on Friday demanded a ban on online mobile applications that give easy loans at high rates to young people.

In a statement, he said these loan companies were contacting youngsters and giving them loans, without any document, through mobile phone applications. “They are taking the names, numbers and addresses of all their relatives, co-workers and friends. Loans to the tune of ₹5,000-₹50,000 are being given without any collateral or document. However, ₹1,500 is being deducted from a small loan of ₹5,000,” he said.

Dr. Ramadoss said a youth from Adambakkam, Chennai, was subjected to immense pressure and humiliation by these companies as he was unable to pay off his loans. “He then took his own life. Another youth had taken loans from another company to pay off his loans and at one point, unable to bear the stress, he took his own life. Yet another youth ran up lakhs of rupees in debt. And the representative of the company contacted the company where he worked, leading to his dismissal. Now, he has no job and no means of repaying his loans,” he said.

While usurious loans are banned in India, and it is illegal to publish the photographs of those who are unable to repay loans, these online loan providers charge up to 30% in interest and are defaming the borrowers. “It is condemnable that no action is being taken against them. Online usurious loans should be banned. If not, the number of people killing themselves would only increase,” he said.

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Printable version | Jan 21, 2021 1:40:26 AM | https://www.thehindu.com/news/cities/chennai/ramadoss-wants-ban-on-online-usurious-loan-companies/article33197105.ece

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