Chief minister Himanta Biswa Sarma has announced a major crackdown on the illegal money lending business in the state, where private money lenders exploit vulnerable people by charging exorbitant interest rates. Over 200 loan sharks have already been arrested. The CM said individuals who have already taken loans from private money lenders will not have to repay the money.
People are borrowing more money from private lenders and non-banking financial firms, which in turn has led the total amount of household debt in Korea to surge to a record 1,870.6 trillion won ($1.38 trillion) in the third quarter, according to the Bank of Korea (BOK). According to the BOK s preliminary data, Tuesday, outstanding household debt, including the amount of credit used for the purchase of goods and services, increased in the July-September period by 2.2 trillion won from the three months earlier.