TODAY -

Private Money Lending and its Moral Limit

Jeremiah Amai Veino Duomai *

Private Money Lending and its Moral Limit
Private Money Lending and its Moral Limit



The absence of robust financial institutions in the state has led to the thriving of private money lenders in the state. The state is also yet to notice the widespread effect of micro-financing companies lending their weight in helping the small borrowers come out from the tyranny of the private money lenders. Thus it is not without reason that in a desperate situation, there are many of those who borrow from private money lenders at a rate of 90% -120% or even upto 150% per annum. At such an astronomically high rate of interest, there is a great need to critique the present lending pattern.

Given that the legal system is not adequate to address such concern of the high number of needy borrower, the larger political community needs to maintain a moral norm to set the prevailing condition right. And this moral consciousness has to emerge from within the community to become part of the public consciousness. And it is to that end that this article attempts to articulate and argue for.

The usual argument to justify such a free-market economic practice is to say that since there are borrowers, the lenders just give them the money. One further argues that none really compels any needy borrowers to come forward, but it so happens that supplies at such a high interest rate flourishes only because there are demands. This kind of argument hides behind the principle that supply-demand is what really matters; there is no reason for moral norms to come into play in such a domain. This kind of reasoning can be countered by two independent arguments first, the fairness argument; second, the corruption argument.

The fairness argument would go this way. Those who borrow money at such a high interest rate are indeed in a desperate economic situation. They might have been brought to such a low situation due to certain ill health in the family or crop failure or some condition of that sort. Had it been possible to come out of their pathetic affair without having to borrow from the private lenders, they would be so happy to do so.

However, having run out of all kinds possible means to repair the damage without having to turn to the private money lenders, they scramble their way through the private money lenders. It is only in such desperate moments that they are compelled to borrow at such a high interest rate. Therefore, those lenders who are charging high interest rate in such a situation is actually taking advantage of someone's helplessness, someone's desperate condition.

Thus, it is not really fair to take advantage of someone's helpless moments. Though a lender may want to wriggle his or her way out of this logical outcome, the fairness argument cannot really be disentangled from the action of the private money lender. If one's action directly leads on to piling up the misery of others, one must bear the moral consequence.

The second argument appeals to the end purpose of lending. It goes about that as a member of a particular social and political community; it is a duty of each person to help one another. Even if one does not want to help anyone as such; or even if he is a miser of the worst kind, by virtue of being a part of the community, this is one kind of a moral obligation that comes along by virtue of being part of the community.

This fact is acknowledged even by the private lenders themselves. Private lenders would further agree that the lending of money is to help the needy person, not to really exploit the borrower or add more misery to his already heavy financial baggage; nor is lending purely for profit alone. However, when interest rate is just so high, the substantive reason of lending money to help the needy ones is damaged. Instead of helping the needy ones, more misery is added unto the borrower.

This kind of practice thus corrupts the purpose of lending money to the needy ones. If there is anyone who considers that lending money is purely for profit alone, then such a person requires a change of attitude. The kind of society where selfishness reigns and the obligation to help the needy ones is pushed out of boundary is not what we should be building. A society thrives and leads on to further flourishing when members of the political community cares for one another and the moral obligation that comes along with the members are honoured.

Banks usually lend money at a rate of 12%-20% per annum, depending on the kind of banks and the nature of loan. Per month it comes to roughly one rupee or little more. Considering this figure, the current figure charged by private lenders in general is way too high. It cripples the poor man's economy. This is nothing short of a selfish and mean character on the part of the private lenders.

Lenders should not charge an interest rate higher than 2%-2.5% per month; which comes to 24%-30% per annum. The value and beauty of solidarity have to be arrested before further deterioration. A society that has completely degenerated will take ages to heal. Moral degradation is not just about getting into adultery or drug; it includes wearing away of virtues such as friendship, community bond etc.

Unless we remain vigilant, the love for money will tear into our age old social and political fabric and destroy the community from within. This attack from the love of money can be very dangerous because it can be so subtle unlike drug abuses or adultery or murder which everybody considers as vices.


* Jeremiah Amai Veino Duomai wrote this article for Hueiyen Lanpao English Edition
The writer is a Ph.D Research Scholar, Department of Philosophy, Delhi University
This article was posted on March 30, 2014.


* Comments posted by users in this discussion thread and other parts of this site are opinions of the individuals posting them (whose user ID is displayed alongside) and not the views of e-pao.net. We strongly recommend that users exercise responsibility, sensitivity and caution over language while writing your opinions which will be seen and read by other users. Please read a complete Guideline on using comments on this website.




LATEST IN E-PAO.NET
  • Tuilha Kol waterfall #2: Gallery
  • Eyek Tamba :: Learn Manipuri script
  • Rally against Mob Lynching #2: Gallery
  • Beyond the tragedy of Tharoijam
  • Jarnail's tryst with Manipur :: Review
  • Who killed the looter? (Short Story)
  • Heart OPD & Echo Screening Mission
  • Call for protest against MU crackdown
  • The farce continues at MU
  • Heikru Hidongba #1 : Gallery
  • Heigru Hidongba (Boat Race)
  • Get down to business
  • The Eternal Moment :: Poem
  • Why is oiling good for the hair
  • Jobs at SKY Hospital
  • The Killing Fields 2013-18 : News Timeline
  • Creating Future Media Leaders in NE
  • Understanding Communist ideology
  • Suspended but drama not over yet
  • Arrested for molesting student in Mumbai
  • Manipuri Diaspora in Myanmar #1
  • Chingyainu, Chingnguremba :: eMing
  • Krishna Janma @Mahabali #2 : Gallery
  • Naga-Kuki Conflict: ..Kuki aggression
  • Tibeto-Burman Languages : Book
  • Indian Judiciary no more a caged bird
  • IGAR (S) calls on Governor of Manipur
  • Spirit of Irabot still runs in Journalists
  • Concern should be about mob mentality
  • Tribes, Art & Soul of India #1: Gallery
  • Rally against Mob Lynching #1: Gallery
  • 'Sahnit' an honour or a disgrace
  • Irabot : Socio-Political Challenges
  • Training employees for better governance
  • Blue Ocean :: Poem
  • Sextortion: Making money from shame
  • Condemn murder of Neiphretuo Metsie
  • Social lacunae
  • BJP on poll drive at Imphal, Kohima
  • Mary Kom lost 2 kg in 4 hours
  • Historical Evaluation of Puya Meithaba #2
  • Felicitation of Sportsperson: Gallery
  • ICJ: Investigation of Extrajudicial Killing
  • Legal profession as career option #2
  • Loktak Down Stream HE Project (2x33MW)
  • Protest against mob lynching at DU
  • Ripples of Music :: Poem
  • Memo submitted to CM over lynching
  • Poems of Peace, Resistance ...
  • Helicopter Schedule for Imphal-Jiri
  • Mirabai recommended for Khel Ratna
  • Martyrdom of Haipou Jadonang #3: Gallery
  • Manipur State is still winning..
  • Gazetteer of North-East India :: Book
  • Sunfeast Cup Football Tournament
  • Trip down memory lane
  • Naga Peace Process :: News Timeline
  • Folk Song :: Poem
  • The Endureres at Dwarka Half Marathon
  • Main accused in cop slaying nabbed
  • Naga talks not confined to Nagaland..
  • Trekking to Dzukou Valley #1 : Gallery
  • Rest in Peace Humanity
  • Ph Banti's artwork 'Trafficking of children'
  • Cry of a Dying River - 45 :: Poem
  • Buddhism is not a religion
  • Jobs at R-Square Design
  • Candle Light at DU over lynching
  • Society as a reflection of govt
  • Mobocracy : Shame on Manipur
  • Kuki Black Day @CCpur : Gallery
  • miAoIbgi pNTuH :: Seireng
  • An opinion on Tharoijam killing
  • How Manipur lost internal autonomy, Kabaw
  • Admission for PhD at Tripura Univ
  • Meefam ST at Nambol, Khangabok
  • Importance of Forest & Environment
  • Deep social divide: Two different folks?
  • Kuki Black Day: Kukis Will never forget
  • R & V Art House's First Art Fest 2018
  • Celebrating International Literacy Day, 2018
  • Born a Kuki, die a Kuki :: Poem
  • History of North East India :: Book
  • Will SimpliciTB make TB treatment simpler
  • Meefam chathaduna ST gi issue..
  • Dipankar Talukdar- Mr Model of World Star
  • System error- who will fix Broken Window
  • Reshuffle Talks : Say No to Yes Me
  • India negotiating vehicle pact with Myanmar
  • Chalwa Village, Kangpokpi #2 : Gallery
  • Thien & its downfall in Zeliangrong #2
  • Is FA a self exposed daylight robbery?
  • Nation Needs Small Farmers
  • Who is programming you ?
  • Bandhs as dissent & survival of laziest
  • Looking for Raju :: Poem
  • The cry of the 2nd class citizen
  • Bharat Bandh in Imphal
  • Historical Evaluation of Puya Meithaba #1
  • Sit-In: Naga Peace Talk #2 : Gallery
  • Naga-Kuki conflict: Search for definitions
  • Mega Marathon Manipur : Download Form
  • Legal profession as career option
  • Guv felicitates 5 JAK RIF for flood relief
  • Stored Anger :: Book Review
  • On stepping into the 20th year of TSE
  • Sept - month which reinstated our courage
  • Krishna Janma @ISKCON #2 : Gallery
  • Empty :: Poem
  • Lets beat littering - plastics pollution
  • NEHU Seminar : Urbanization in India
  • Jobs at JCRE Skill Solutions
  • Declaration of Naga Collective Spirit [Sep 8]
  • Akanba Khongjangidamak Yathokpa Loire
  • Support for STDC from UMA, Assam
  • 'Deplorable power supply in Nagaland'
  • Tryst with destiny - Should we accept ?
  • Stand off at MU : Impact on LS Poll
  • Exploring the enthralling Tuilha Kol
  • Kamesh Salam : Outstanding Green Activist
  • The Valley Of Brahmaputra :: Book
  • Development of road database
  • The inner page story :: Poem
  • Kakching WW-II Memorial Run 2018
  • STDC public meeting at Langathel Keithel
  • Maibi Jagoi at Sangai Fest : Gallery
  • My poll without prejudice to anyone
  • MEETAC - Mission for streamlining TK
  • Conditions leading to Marxism
  • Heart Camp at Khelakhong, Thoubal
  • Cyber bully: Crime that follows you home
  • Bhupen Hazarika : Tribute at London
  • AEP & Importance of Myanmar & NE
  • Political pandemonium
  • Students central to MU issue
  • Landscape from Koubru #2 : Gallery
  • Leishangthem Robert for Mr. World 2018
  • Oinam Shilla Chanu at Mrs India Earth
  • North-east Frontier Of India :: Book
  • Thien & its downfall in Zeliangrong #1
  • Cry of a Dying River - 44 :: Poem
  • JRF Post at Mizoram University
  • Honours to Bamboo; a ubiquitous gift
  • Case of hunter now being huntedr
  • Chaklam Khongchat Numit #3 : Gallery
  • Women Empowerment & judicial Activism
  • Narin Chenggum - wild edible mushroom
  • Flying Star at your lips :: Poem
  • Out of the box thinking
  • Call centre fraud: Vicious vishing attack
  • Changing India & its impact on Manipur
  • MU stand off gets uglier
  • Tikendrajit : The Lion of Manipur #4
  • Krishna Janma @Mahabali #1 : Gallery
  • Eastern Frontier of India :: Book Review
  • Remembering Radhakrishnan ..
  • Moments to cherish :: Poem
  • Glimpse of the Buddha's teaching
  • NH7 Weekender Express Editions
  • Rejoinder to NDPP from NPF [05 Sep]
  • Mental equation
  • Are teachers teaching ? Apt, timely poser
  • Sirarakhong Hathei Phanit @Ukhrul : Gallery
  • Sit-In: Naga Peace Talk #1 : Gallery
  • Globalization, Act East Policy & Manipur
  • Review on anthology of Parthajit Borah
  • Inner Line Permit (ILP) Demand :: Timeline
  • Child Friendly Police Stations proposed
  • ADBU Goes Green with Solar Energy
  • Convocation of Assam Don Bosco
  • Fetal Echocardiography - Seminar held
  • Rejoinder to NPF from NDPP [04 Sep]
  • Divide, divert and rule will not work
  • FA, MU crisis : Issues before LS polls
  • Krishna Janma @ISKCON #1 : Gallery
  • Komrem Student Day @Bangalore : Gallery
  • September Calendar for Year 2018 :: Tools
  • The Coils of Pakhangba :: Book
  • Physics Program in Don Bosco, Tura
  • Condemns MU VC's vindictive stance
  • 'Policy of India to suppress people'
  • NDPP congratulates Abu Metha
  • Pandey back at MU! Violating spirit of MoA
  • Exhibition @ Art College #2: Gallery
  • AMWJU Sit-In-Protest : Gallery
  • Shri Krishna Janmasthami :: Book
  • Life's heck :: Poem
  • Environment & lung health are vital
  • Innovation for the common man
  • Humanitarian crisis with NRC in Assam
  • Rejoinder to NDPP from NPF [02 Sep]
  • Jangou Rah : eRang Classic
  • The Story of 40 Pineapple Suckers
  • Rebirth of Manipur Human Rights Comm
  • Yumkhaibam Nanao Eramdam Yaourakhre
  • Lecture: Governance & Public Services
  • X-rated poem :: Poem
  • Ningol Chakkouba Celebration in Delhi
  • Baton changes hands at IGAR (South)
  • Rejoinder to NPF from NDPP [01 Sept]
  • A Wake-up call
  • Lok Sabha polls : More crucial for BJP
  • Martyrdom of Haipou Jadonang #2: Gallery
  • Chaklam Khongchat Numit #2 : Gallery
  • The World of Kuki People :: Book
  • Effects of the Burning of Meitei Puyas
  • Soil Technician required at MaolKeki
  • Jr. Mr. India 2018, Gyanendra Thokchom
  • Rejoinder to HTC & allies' statement
  • Consensual sex..Does it amount to rape ?
  • Need for all to keep their sanity
  • Sanagi Tenawa :: Funga Wari
  • MU: Den of Insurgents or Den of Ideas?
  • Can NRC Update save Assam and NE ?
  • Victim of Enforced Disappearances
  • Admission for Ph.D. at Tripura University
  • Martyrdom of Haipou Jadonang #1: Gallery
  • Physics Program in Don Bosco College
  • Resolution: Right of Human Right Defender
  • Advancing rights of Human Right Defender
  • Dolaithabi Dam , Senapati : Gallery
  • Eid-Ul-Adhaa Festival #2 : Gallery
  • Chaklam Khongchat Numit #1 : Gallery
  • 47th Nagas Annual Meet at Mumbai
  • Transcending Patriots' Day(s) #4
  • Sangai Fest: Fashion Show #2 : Gallery
  • Tikendrajit : The Lion of Manipur #3
  • Dr. Jodhachandra Sanasam : Sahitya
  • Architects announces 1st MADE 2018
  • Expedite FA Rally #2 : Gallery
  • Billie's Book by Ranjeeta Mayanglambam
  • Shougrakpam Bijaya :: A Profile
  • Disputed Myanmar Border Pillar : Gallery
  • Front Page Photo 2018 #3: Gallery
  • Dzuko valley #4 :: 360 Panorama View
  • Manglandasu Nang - OST :: e-pao Radio
  • Temples of Manipur : Gallery
  • Old Manipuri Movie #1 :: eRang Classic
  • SPONSORED ADS