Recently while watching the news channel NDTV 24x7, I came across a shocking and emotional report about an incident which occurred at Vidarbha, Maharashtra. A Government Clerk commits suicide leaving behind young children and family. The reason, he was in debt to moneylenders despite he repaying the amount those money mongers were still after him for more. This may sound like any other report of everyday incident but that incident will have far reaching effect on the future of the rest of the family members he has left behind. This shows that money lending/borrowing can seriously affect his well being as well as family well being.
Money lending has become a serious minting business for moneylenders in Nagaland for quite sometime. Loans are given out by the moneylenders at an exorbitant interst rates starting from a low (By their standard) of 5% per month i.e. per month up to 20-25% per month. Therefore this will sum up to 60% p.a to 340% to 300%p.a. This becomes serious again when a loanee is unable to repay his/her loan amount (principle) and the interest by next month, sum of principle loan amount and interest becomes the principle for the next month and this goes on and on i.e. compounding. So by the end of the year his/her debt increases by upto 800%. Imagine incase a person is unable to repay for 6 months or a year of two what will be the plight of his debt. Imagine a person borrowing Rs.10,000 @ 20% p.m compounding the interest at the end of the year he is indebted by about Rs.90,00 (Rupees ninety thousand) this is serious money. This is Naga style of money lending or banking.
This business has become a very good source of income for some individuals/groups but thousands of families are driven to poverty and debt. Thousand of families are spending sleepless nights, shed silent tears. Thousands of government employees in Nagaland are under such debts, loan after loan, personal loan, house building loan, lifelong GPF savings, any other available loans, further loans again from some other moneylenders/groups/society are availed just to repay the interest whereas the principle loan amount still remains intact. He is still in debt even deeper than before, now he is in debt to the money lenders as also he has to repay all the loans availed from the bank as well as from the government department concern. These money lenders thus fleece their victims to their bones, Shylock was more merciful he only wanted a pound of flesh whereas out here they want every ounce of flesh. There are so many families whose house and property are grabbed/confiscated by this money mongers. Is this not another form of exhortation?
Some very disturbing facts about these money lenders are they are themselves government employee or group of government employees (forming money lending group/society), self help groups (SHG) availing government subsides or loans helping themselves whereas to unsettle other families help themselves to put other families under burden of debt. Every NGOs Union etc. are also involved in this money lending business though at different rates for they say fund raising purpose etc. Should NGOs, Unions etc. raise funds by putting someone under huge debt? Are they social upliftment or unsetting families? How far is it to your conscience?
“If you lend money to any people who are poor among you, you shall not be like moneylender to him you shall not charge him interest” Exodus 22: 25
If this business persist at this rate than it won’t be long when we in ‘Nagaland for Christ” too will have suicide killings, murders etc. due to debt and poverty. It’s high time we come to our senses, do something before it is too late. Why not appropriate authority take serious look into this matter? Why not banned money lending at such exorbitant rate? Why not fix a uniform rate of interest for all? Why not fix uniform rate of interest for all? Or ban it together?
“Alas- For the love money is the root of all evil, for which some have strayed from the faith in their greediness and pierced themselves with many sorrows” I Timothy 6:16
Nulen, Bayavu Hill, Kohima
