What is ‘call money’ racket? (The Hindu)

•  Call money is an instant loan available over a call through flexible processes where the lender comes home with money, promissory note and other documents to fix lendees. The interest rate usually ranges from 120 per cent to 200 per cent. Another key ingredient in the process is that the lender can demand return of the money over a call any time.

•  In case the lendee is not able to repay, vehicles, houses and other movable and immovable properties are demanded as guarantee. According to sources, the business of high interest rate is close to over Rs. 600 crore in Vijayawada itself.

•  Hundreds of women were threatened, coerced and dragged into flesh trade when expressed inability to repay on time. In one of the cases, a victim paid around Rs. 6 lakh interest for the Rs .1.5 lakh loan she took.

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