Hyderabad: Despite regular crackdowns by the police, moneylenders continue to operate in the older parts of the city but are adopting different methods.
While earlier the moneylenders had swanky offices, they are now operating as mortgage units, and shops offering electronics and vehicles on instalments.
“They are levying huge interest on vehicle finance and employing musclemen to threaten and recover the money. The targets are not just lower class families but those in the middle class too,” said social activist S.Q. Masood.
At least five organised gangs consisting of big operators, history sheeters and lawyers are working in the Old City. “While banks charge between 10 and 15 per cent interest per annum, private moneylenders charge high interest rates for a month,” said social activist Mohsin Khan.
The police has learnt that some gangs lure families by offering a mortgage on their properties. These families are looking to borrow for marriages or to meet medical expenses.
“These families are offered loans between '5 lakh and '30 lakh. If these families default on even one instalment, the gangs take away the properties,” said a police official.
Sources said that such gangs are largely settled in the areas of Gulzar Houz, Mirchowk, Chandrayangutta, Bandlaguda, Kalapatther and Bhavaninagar.
A few government personnel run the money lending business through private persons. Staff from government schools, civic agencies and state-run hospitals top the list, sources said.
DCP, South, V. Satyanarayana said the police had registered several cases in the last few years against private moneylenders. “We detained a few moneylenders under Prevention of Dangerous Activities Act. Persons who are being victimised by the private money lenders should immediately approach the police,” Mr. Satyanarayana.
