Indian national arrested in Ang Thong over illegal loans in Thai baht
An Indian national has been arrested for operating an illegal daily loan scheme in Ang Thong. The arrest followed complaints by residents to the local Justice Centre about the extortionate interest rates and violent threats from the loan shark.
The investigation, conducted today, November 30, found that an Indian man, identified only as Harinda, had loaned amounts ranging from 2,000 to 10,000 baht, charging a daily interest of 20%, which equates to 300 baht per day. Failure to pay resulted in threats and physical harm.
The local authorities and police discovered that the loan sharking operation was masked as a roaming sales business, targeting daily market traders in Jarakay Rong Market and Wat Chaiyo Market. The loans, typically ranging from 2,000 to 10,000 baht, required daily repayments of 300 baht, equating to an exorbitant daily interest rate of 20%. Borrowers who were unable to repay were threatened and subjected to physical harm.
Following a thorough investigation, local authorities apprehended Harinda at a water shop in Moo 8, Chaiyaphum subdistrict. During the arrest, authorities seized several items of evidence, including 340 baht found in the suspect’s jacket pocket, a blue pen, an additional 1,650 baht in cash from a black wallet in his trouser pocket, a blue mosquito net from under the seat of his Honda PCX motorcycle, and a mobile phone, reported KhaoSod.
Harinda was turned over to an investigation officer at Chaiyo Police Station, where he was charged with lending money at a rate exceeding the legal limit, according to the Act Banning Excessive Interest Rates of 2023, and conducting a debt collection business without a license, as per the Debt Collection Act 2023.
Locals revealed that they had been forced to borrow from the illegal loan shark due to the economic downturn and job losses. They were unable to access capital through the formal financial system, leaving them with no choice but to risk their lives by borrowing from illegal money lenders.
