Old City financiers now insist on daily ‘Malai’

Private financiers in the Old City are adopting a new modus operandi to make money. They have coined a new term for the daily collection of money from shopkeepers and hawkers and that is Malai. This means that if someone has taken a loan of `10,000 from the financier, then he has to pay him `100 everyday, no matter what happens. This daily collection is known as Malai.

The irony is, the principal amount remains the same despite paying Malai everyday.

The operations of financiers in the Old City are different from that of new city. When someone seeks a loan from a financier in the new city, he can take it on a daily return or monthly return basis. He can pay the amount in EMIs, or daily for a certain period, after which he will be relieved of the loan, said Abdul Zaki a fruit shop owner. “But things are different in the Old City. Here a person has to keep paying the daily interest (which is now known as Malai) until he repays the principal,” he added.

The term malai is in circulation from the beginning of this year and it is used as a code to avoid the attention of police and others.

Md Abdul Akram, an activist in Old City, said that malai will be collected more during Ramzan as private financiers lend money to push-cart vendors, shop owners and hawkers at high interest rates, and these people do the seasonal business of selling Haleem, fruits, vegetables, dresses etc.

“People take loan from them as they can pay malai everyday, because of the flourishing business dring Ramzan. But problem crops up after the business slows down. There were serious repercussions when many people couldn’t pay the daily interest. The financiers would react by taking away the household items of the defaulter. They even take away vehicles. In worst cases, people who took loans were beaten up when they were unable to pay; and some were murdered.”

When contacted, deputy commissioner of police, south zone, Mr. V. Satyanarayana, said, “We have a special focus on financiers because they try to take advantage of the Ramzan season and fleece vendors. Their main targets are the middle class and the lower middle class. If anyone is found indulging in illegal acts they will be booked under the Telangana State Money Lending Act and also under the IPC provisions against extortion.”