Government of Manipur Finance Department (Institutional Finance) advised the general public to take caution as reports have been received about individuals/small businesses/small and marginal farmers falling prey to the menace of unregulated financial scheme (cash based) by some unscrupulous group of money lenders and others in various sections of the society in Manipur.

Director, Institutional Finance Manipur on Thursday notified that these unscrupulous groups of money lenders and others are luring people with the promise of getting loans in a quick and hassle free manner. However, these have led to exploitation due to excessive rates of interest and additional hidden charges being demanded from borrowers and several small and marginal farmers have lost their lands or mortgages due to unfair and unsecure financial schemes, it stated.

The notification appealed to the public to beware of any person or entity offering to provide loans or arrange loans in easy ways. Also, if loans are being offered at interest rates much lower than the rates offered by any commercial bank, they might vanish after collecting the processing charges, it said.

It also cautioned against investing hard earned money with unregistered entities as there is every chance of their disappearance and not to join any money chain like pyramid structure/ponzi schemes that require initial deposit or buying a product and enrolment or more members. These are illegal and banned, it mentioned.

There are various types of money lenders in Manipur which are registered under various acts/rules with different organisations/departments, it mentioned.

It also further said to inform the office of SP/CID (Crime Branch) or SP (Cyber Crime) or any other law enforcing agency if any fictitious offers through email/SMS/call, etc promising money is received.