Indian tourist with student visa arrested over extortionate loan rates

An Indian tourist with a student visa was arrested for allegedly running a loan shark business in Thailand.

Chhotu, 22, allegedly charged borrowers exorbitant interest rates of up to 304 per cent per annum.

Police launched an investigation following complaints from local vendors that a foreigner was offering loans that exceeded legal interest rates, leaving borrowers struggling to repay their debts.

Officers from the Crime Suppression Division tracked down Chhotu while he was collecting repayments from a debtor in Nong Bua Lamphu, on October 11.

Footage shows officers detaining him at an eatery in the Mueang district. He was charged with operating a personal lending business without a license and charging interest rates exceeding legal limits.

Police seized 1,200 baht in cash and a notebook containing records of the loans.

Investigators found that Chhotu had reportedly lent the vendor 2,000 baht, with the borrower required to repay 100 baht a day for 24 days.

Officials said the interest rate equates to 304 per cent per year, far exceeding the legal limit.

Police Colonel Suriyasak Jirawat, superintendent of Sub-Division 3 of the Crime Suppression Division, said: ‘A background check revealed that this Indian national had entered Thailand on a student visa but had exploited this opportunity to operate an illegal money-lending business.

‘During questioning, he confessed to all charges before being handed over to investigators at Mueang Nong Bua Lamphu Police Station for legal proceedings.'