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Bank officials’ unconventional tactic to recover loan sparks controversy in Telangana

Bank staff in Janagaon district set up a stove outside a woman's house to pressure her into repaying a ₹61,000 loan, drawing public criticism.

by HNH Web Desk
27-01-25 07:19 AM
Jangaon Loan Recovery

Hyderabad, January 27: In a recent incident in Janagaon district’s Devaruppula mandal, bank officials employed an unconventional method to recover a loan, leading to widespread public criticism.

Guguloth Lakshmi, a resident of Pedathanda village, had an outstanding loan of Rs 61,000 with the Telangana Grameena Bank through a women’s self-help group. Due to financial difficulties, she was unable to repay the amount on time and requested an extension from the bank.

Unsatisfied with the delay, bank staff visited her residence and, in a bid to pressure her, set up a stove outside her house, symbolizing their intent to stay until the payment was made. They demanded an immediate payment of Rs 10,000 and insisted that the remaining Rs 51,000 be cleared by February 28, warning of continued presence if the dues were not settled.

A video of this incident has circulated widely on social media, prompting netizens to question the bank’s approach. Many have criticized the officials for targeting an individual over a relatively small sum, while pointing out that larger defaulters often face less direct confrontation. The incident has ignited discussions about the ethics of loan recovery practices and the differential treatment of borrowers based on the loan amount.

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