Causes and Effects of Illegal Loan Sharks Essay

llegal shylock is the party offering immoral loans by charging higher interest rates. Doubled profits allow their business enterprise to continue operating despite the global economic recession. Oriented run much(prenominal) as sharks need to combat. Illegal noneslender promote their work with attractive offers such as instant and accessible loan without collateral while legitimate financial companies impose hard-and-fast conditions and take a long time to approve the loan.In Indian society, extralegal propertylender known as Chettiar, and was called the Tai Ee commodious in Chinese and loan sharks in the Malay fraternity. Statistics show that the figure of speech of hot borrow from loan sharks is increasing from time to time. Be build of these activities brought many disadvantages, the commence of this phenomenon must be identified and effective measures should be taken to pass over them. There are several causes that make illegal moneylender services received. Amo ng them is as easy approved loans illegal loan sharks.This is because borrowing money from the bank require complicated surgical procedures and strict conditions. Someone who borrow from illegal loan sharks leave get loan approval within a few hours compared with a bank that requires a long time to project the eligibility of the borrower. Illegal moneylender similarly mendediakan loans to anyone regardless of whether the money force out be borrowed, from RM1000 to hundreds of thousands of dollars. They also know how to win borrowers and allow lenders to require collateral.More and more than loan money from illegal loan sharks will only change magnitude KADA interest on the borrower. Rising interest rates cause borrowers universal mampumemulangkan not borrowed money and eventually there will be a further tragedy case. The next factor is the urgent need of money or suffered by the borrower to make a living for not having a salaried job. This is due to the borrower is experienc ing fusss or obstacles when working. In addition, borrowers may also seriously educated and do not have a certificate of rightness and consequently difficult to get high income pekarjaan.Therefore, borrowers will face 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 scar or expand their businesses is also one. The cause of the moneylender loans illegal. One model of business if someone wishes start or expand a business, he will require a sum of money sufficient to bring home the bacon the desire. It can not be dinifikan that source can also cause illegal moneylender services received in the community.With this effective measures should be taken as soon as possible in night club to overcome problems related to illegal loan sharks. Measures that can be employ to combat the problem of illegal loan sharks are law enforce ment tight, Moneylenders execution Amendments of 1951 to authorize the police to do the investigation, seize documents and search premises and bear any person engaged in illegal loan sharks without a warrant so that no one cried foul. The authorities should regulate macrocosmise publications involving illegal lending by loan sharks of the tyrant.Amendments to the Money Lenders Act 1951 to subjoin the maximum fine and imprisonment and caning for pesalah. Contohnya, they should be charged fines include a sum of RM10000 or five years imprisonment or both at once. For illegal loan sharks who hurt borrowers should be unholy punishment, such as whipping. Therefore, the police in collaboration with the Ministry of Home personal business (MOHA) should work together to limit the production and penguatkuasaa. In this trend the problem of illegal loan sharks can dibanteraskan effectively.In addition, financial firms and banks also represent an important role in activities membanterask an illegal loan sharks. Finance companies and banks can provide various forms of loans to low-income and sederhana. Contohnya, the bank can extend the time trammel to return the money borrowed by the borrower with low income or facing kwwangan. Tambahan virtually 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 many and strict conditions for the easy way to make loans.In addition, they also have to accelerate lending to pile who are desperate and facing serious financial problems. Awareness of the unfortunate effects of borrowing money from illegal loan sharks should also be increased in the community. The government should launch a massive feed to make state aware of the dire consequences of borrowing money from illegal loan sharks. Awareness activities can be disseminated through print media. As a member of society, we also have a responsibili ty to compensate to the authorities if they have information about illegal lending activities.Therefore, public pengduan centers should be set up in setap area to facilitate community Assemblywoman pimp report illegal action at law to activity can be reduced illegal activities pimp. (Tzyy Shyang) In conclusion, people should avoid getting winding in illegal money lenders from the loan sharks so dapt live in peace 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 needs to join forces together deangan authorities to menganangi this activity from excessive fragmentation.The authorities should take stern action against the recipient and the conferrer 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 separate financial companies 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 vaccinated in the community so that they do not face financial problems in mengadapi uncertain economic development.