Causes and Effects of Illegal Loan Sharks Essay

llegal bullionlender is the company offering extralegal adds by charging high liaison rates. Doubled profits pass on their business to continue operating contempt the global economic recession. Oriented service such as sharks inquire to combat. sinful usurer enhance their services with attractive offers such as instant and convenient give without verifying while legitimate financial companies land strict conditions and take a pine time to approve the contribute.In Indian society, extrajudicial capitallender copen as Chettiar, and was called the Tai Ee Long in Chinese and add sharks in the Malayan community. Statistics show that the number of hot suck in from loan sharks is increasing from time to time. Because of these activities brought umpteen disadvantages, the cause of this phenomenon must be determine and effective measures should be taken to scourge them. There are several causes that discombobulate punishable cashlender services received. Amo ng them is as easy approved loans illegal loan sharks.This is because take uping money from the bank hold complicated physical processs and strict conditions. Someone who dramatise from illegal loan sharks will take aim loan approval within a few hours compared with a bank that requires a long time to consider the eligibility of the borrower. Illegal moneylender as well mendediakan loans to anyone regardless(prenominal) of whether the money open fire be borrowed, from RM1000 to hundreds of thousands of dollars. They in addition know how to win borrowers and allow lenders to require collateral. much and more loan money from illegal loan sharks will only annex KADA interest on the borrower. Rising interest rates cause borrowers everyday mampumemulangkan not borrowed money and eventually on that point will be a further disaster case. The next factor is the urgent need of money or suffered by the borrower to delineate a living for not having a salaried job. This is due to th e borrower is experiencing problems or obstacles when turn overing. In addition, borrowers may also poorly ameliorate and do not have a certificate of excellence and consequently toilsome to quiver high income pekarjaan.Therefore, borrowers will baptistery problems such as dismissal, unemployment and so on. This causes the borrower to borrow the money from illegal loan sharks for a living. In addition, the problem of financing childrens education and the need to start or expand their businesses is also one. The cause of the moneylender loans illegal. One example of business if soulfulness wishes start or expand a business, he will require a meat of money sufficient to master the desire. It gouge not be dinifikan that descent foot also cause illegal moneylender services received in the community.With this effective measures should be taken as soon as possible in order to overcome problems related to illegal loan sharks. Measures that backside be utilise to combat the pro blem of illegal loan sharks are law enforcement tight, Moneylenders Act Amendments of 1951 to blow over the police to do the investigation, seize documents and bet premises and arrest any somebody engaged in illegal loan sharks without a warrant so that no one cried foul. The authorities should regulate publicize publications involving illegal lending by loan sharks of the tyrant.Amendments to the Money Lenders Act 1951 to increase the upper limit fine and chains and caning for pesalah. Contohnya, they should be charged fines included a sum of RM10000 or five years imprisonment or both at once. For illegal loan sharks who hurt borrowers should be consummate(a) punishment, such as whipping. Therefore, the police in collaboration with the Ministry of Home Affairs (MOHA) should work together to limit the production and penguatkuasaa. In this way the problem of illegal loan sharks can dibanteraskan effectively.In addition, financial firms and banks also play an important role in ac tivities membanteraskan illegal loan sharks. Finance companies and banks can endure heterogeneous forms of loans to low-income and sederhana. Contohnya, the bank can extend the time frame to rejoinder the money borrowed by the borrower with low income or facing kwwangan. Tambahan near the bank can offer interest rates less applicable to low-income borrowers. Banks and finance companies have to provide a more simple procedure and does not require collateral and the galore(postnominal) and strict conditions for the easy way to posit loans.In addition, they also have to accelerate lending to people who are horrendous and facing serious financial problems. knowingness of the adverse effects of adoption money from illegal loan sharks should also be increased in the community. The government should instal a massive campaign to touch people aware of the dire consequences of borrowing money from illegal loan sharks. sense activities can be disseminated through mug media. As a m ember of society, we also have a responsibility to incubate to the authorities if they have information about illegal lending activities.Therefore, public pengduan centers should be set up in setap scope to facilitate community Assemblywoman pimp insure illegal legal action to activity can be reduced illegal activities pimp. (Tzyy Shyang) In conclusion, people should avoid getting problematical in illegal money lenders from the loan sharks so dapt live in field pansy and quiet for being involved in this activity will not get any benefits even cause byawa themselves and family members at risk. By the community today necessarily to join forces together deangan authorities to menganangi this activity from excessive fragmentation.The authorities should take fag end action against the recipient and the giver and illegal loan sharks lender and provide various altertif so people can borrow money from financial institutions of which is recognized as the banks and other financial com panies so there is no issue we do not get away from illegal loan sharks cenkagaman by we are in financial difficulties. However, awareness of the importance of smart money management should also be vaccinate in the community so that they do not face financial problems in mengadapi uncertain economic development.