2 Indian men arrested near Bangkok for offering high-interest loans

Immigration Bureau (IB) officers announced a successful operation to arrest two Indian men illegally offering high-interest loans to Thai people in Nonthaburi province near Bangkok.

The IB launched the operation to crack down on foreigners running illegal businesses or posing as powerful and influential people in the communities. The operation led officers to a 39 year old Indian man, identified only as A, who offered loans to Thais in the Nonthaburi province.

Officers observed the man and discovered that he rode around the area on a bicycle offering loans to Thais with financial problems. Armed with concrete evidence, officers arrested A at his accommodation in the province and also discovered that he had overstayed his visa by more than six years.

A further investigation into the matter was conducted until officers found a Thai woman who borrowed money from another Indian man, B. The woman made known that she was the owner of a clothes shop and borrowed 3,000 baht from B. No document or contract was made for the loan.

According to the woman, she borrowed 3,000 baht from B and had to pay back 150 baht per day for 24 days. The total amount of repayment was 3,600 baht. The 600 baht interest is considered very high as it works out at 25% per month or 300% per year.

The woman informed officers that B would visit her shop on December 21 of last year. Consequently, officers waited to apprehend him. They remained on standby until B arrived, collected money from the woman, identified themselves, and executed the arrest.

B guided officers to his residence, where they uncovered his bank accounts for receiving debtor funds. Additionally, they found a notebook containing records of each loan. B admitted to lacking employment and disclosed that he provided loans to individuals to generate interest and sustain his livelihood.

Police reported that B’s visa had not yet expired, and he was permitted to stay in the country until November 16, 2024.

Both Indian men face two charges including:

• Section 4 of the Excessive Interest Rate Prohibition Act: offering loans with an interest tighter than the legal limit. The penalty is imprisonment of up to two years, a fine of up to 200,000 baht, or both.
• Section 51 of the Alien Working Act for working without permission. The penalty for this offence may include imprisonment for up to five years, a fine ranging from 2,000 to 100,000 baht, or both.