Rajasthan Man Alleges Predatory Lending Scheme by Moneylenders

Preamprakash Bihani filed a police complaint in Nagaur after attempting suicide on August 23, citing psychological distress stemming from alleged abusive lending practices. The complaint, formally registered on September 25 following his medical treatment, details accusations that moneylenders systematically inflated his debt through excessive interest charges and withheld six tolas of gold jewellery pledged as collateral.

According to the complaint, Bihani initially borrowed approximately 16 lakh rupees but claims the amount ballooned to between 50 and 60 lakhs after interest accumulation. The moneylenders allegedly demanded additional payments while refusing to return the gold ornaments, despite receiving substantial sums.

Bihani's case highlights ongoing concerns about predatory lending practices in rural and semi-urban areas of Rajasthan. The accused moneylenders reportedly used intimidation tactics and threats to pressure the borrower, leading to severe psychological distress that culminated in the suicide attempt.

The Nagaur police have registered a formal case against the moneylenders. Authorities are investigating the allegations of extortionate interest rates, wrongful retention of pledged valuables, and intimidation. The complaint has drawn attention to the need for stronger regulation of informal lending practices in the state.