Justice To Usury Victims

Sugam Gautam

Feeble voices emanating from the mouths of usury victims have fallen on the deaf ears of the authorities. Over the past two years, victims of loan sharks have consistently embarked on an arduous journey to the capital city, with the hope that that the government would mitigate their woes. Despite assurances from the government, the plight of the victims has only worsened, prompting them to march through the streets of Kathmandu in search of justice.

Residents of urban areas, who have an easy access to financial institutions, may find it difficult to fathom that usury still persists in the villages. It is only when various media outlets cover the sufferings of loan shark victims that urban dwellers become aware that such cases still occur in remote areas. The demonstrations of people squatting on the streets of Maitighar speak volumes about the dire straits of marginalised people.

Victims from over 50 districts have traveled to Kathmandu. The government is blamed for not doing sufficient to punish the culprits and do justice to the victims. Upon receiving assurances from the government, the victims feel relief and return to their homes. However, when pressured again by loan sharks, they once again tread their paths to Kathmandu. Once in Kathmandu, they plead for help, but their voices are drowned out by the pleas of another group of protestors plagued by a different problems.

The problem of loan shark victims starts with the money crisis, propelling them to knock on the door of moneylenders. The moneylenders feign a role of a messiah by providing the needed funds. Faced with economic crisis, the borrowers have respite after receiving the loan, only to realise later that they’ve fallen into the clutches of loan sharks. Even after repaying the principal, the accumulating interest becomes unmanageable, pushing victims into the perpetual cycle of debt. 

Afterwards, incessant phone calls from the moneylenders follow. When the victims can’t pay the high interest, lands and properties are confiscated, leaving victims destitute. In some cases, loan sharks often resort to verbal attacks, physical violence, and other more heinous crimes. While the federal government must intervene in citizens’ suffering, local governments also need to lend a helping hand to combat this predatory practice. Similarly, financial institutions must equitably extend their services, establishing branches and fostering financial awareness in rural communities.

The government-formed task force has been monitoring the cases of loan shark victims in Nepal.  According to existing laws, a loan shark may face a jail term of up to seven years and a fine of Rs 70,000. If a loan shark seizes cash or property from a borrower, restitution is ensured. While such laws will help curb this practice, it remains crucial to offer relief to victims who have already fallen prey to unscrupulous moneylenders. Moreover, only a fraction of victims choose to share their predicaments, with a substantial number enduring silently. The silent sufferers should not stay silent and unite to fight against injustice.