CM Naidu urged to revive AP Money Lending Bill

Vijayawada: The state government must urgently revive and enact the Andhra Pradesh Money Lending Bill, 2017 to protect vulnerable communities, including survivors of trafficking and victims of Commercial Sexual Exploitation (CSE).

VIMUKTHI, a state-level forum of rescued survivors, highlighted that post-pandemic challenges and recent floods have worsened the socio-economic conditions of these marginalised groups who are forced to rely on private money lenders and paying exorbitant interest rates and harassment.

President and secretary of VIMUKTHI N Apurwa and Pushpa emphasised the severe exploitation by unregulated private money lenders, often leading to debt traps, abuse, and even trafficking.

During 2015-16, the issue of “call money” lending devastated many vulnerable families, leading to suicides and further exploitation. Despite past efforts by the state to control money lending, the absence of legal frameworks today leaves survivors with no protection or recourse.

The Andhra Pradesh (Andhra Area) Debtors’ Protection Act of 1934 was repealed in 2018, and the Money Lending Bill of 2017 has yet to receive presidential assent. As a result, unlicensed money lenders continue to exploit borrowers with high-interest rates, pushing many into deeper poverty.

The problem has worsened due to the recent floods in Vijayawada, which have destroyed the livelihoods of many survivors.

VIMUKTHI leaders are calling for immediate action, requesting the government to regulate money lenders and provide legal protections to prevent further exploitation. Lakshmi (name changed) urged the government to implement two key solutions: Unconditional Cash Transfers (UCT) and a stronger legal framework to control the private money lending industry. She explained how many survivors, lacking alternative financial resources, are forced into taking high-interest loans, which further entrap them in a cycle of debt.

A survey by Sanjog, an NGO working with trafficking survivors, revealed that 70 per cent of VIMUKTHI leaders had borrowed from informal lenders during the pandemic, with somestill repaying these debts.

They demanded immediate revival and enforcement of the Andhra Pradesh Money Lending Bill, with strict provisions to regulate private lenders, set maximum interest rates, and ensure legal recourse for borrowers. The government must prioritise protecting survivors from further exploitation and implement UCTs to provide immediate relief.