# Exorbitant Interest Loan Harassment: Your Police Options

> Paid far more in interest than the principal and now facing threats? Know the legal remedies against exorbitant interest loan harassment in India.

Source: https://sudhirrao.com/insights/exorbitant-interest-loan-harassment-police-options  
Author: Sudhir Rao — Advocate, Supreme Court of India  
Category: Criminal  
Published: 2026-09-18

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#### One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

**Note:** Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

**TL;DR:** Exorbitant interest loan harassment is not a "private money matter" in the eyes of the criminal law. If a lender charges interest far beyond what the law allows and then uses threats, abuse or sexual taunts to extract money, the police can and should register an FIR for extortion and criminal intimidation. Keep every payment record and every recording safe, and get a lawyer to draft the complaint before you walk into the station.

In 2022, a family in Pune borrowed ₹3.8 lakh from a private moneylender, a woman introduced through a relative. The rate agreed was four to five per cent a month. That worked out to roughly ₹20,000 in interest, every month, on a principal that never moved.

They paid. Month after month, for years, mostly through Paytm. When Shruti finally added it up last year, the family had paid over ₹22 lakh in interest on that ₹3.8 lakh. Her father's fracture and replacement surgery, and the eighteen months he spent in bed, took away the household's only income. They kept paying anyway, borrowing ₹50,000 and ₹90,000 at a time from other people.

So they sold part of their village land and told the lender the rest would come by around 20 October 2025. The buyer's money arrived about six weeks late. The lender's demand then jumped to ₹7 lakh, and the calls to Vaishali turned into abuse, some of it sexual, in voice notes Shruti saved on her phone.

Shruti approached the Chamber of Advocate Sudhir Rao after an informal trip to the local police station went nowhere. Advocate Sudhir Rao's experience in usurious lending and criminal intimidation shaped the

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_This is the AI-readable Markdown version of an article published by the Chambers of Sudhir Rao. It is general legal information, not legal advice. Canonical page: https://sudhirrao.com/insights/exorbitant-interest-loan-harassment-police-options_