T.N. Deputy CM introduces Bill to prevent coercive recovery by money lending entities

Deputy Chief Minister Udhayanidhi Stalin. File
| Photo Credit: M. Periasamy

The Tamil Nadu government on Saturday (April 26, 2025) introduced a Bill seeking to protect people from coercive actions of money lending entities.

Deputy Chief Minister Udhayanidhi Stalin, who introduced the Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Bill, 2025, said that economically weaker and vulnerable sections of society — especially farmers, women, self-help groups, agricultural labourers, workmen, footpath vendors, dairy workers, construction workers, and migrant workers — often fall prey to attractive loan offers from money lending entities, including digital lending platforms, leading them into unsustainable debt.

“Further, the money lending entities are resorting to unethical ways of recovering the debt from borrowers, who are already in financial distress, which sometimes instigates the suffering borrowers to die by suicide, thereby ruining many families, which disturbs the social order,” he said.

Mr. Udhayanidhi said it was necessary to provide a statutory framework to protect economically weaker and vulnerable groups from the undue hardship caused by coercive recovery methods used by money lending entities engaged in providing loans to individuals, groups, self-help groups, or joint liability groups.