In a heart-wrenching tragedy that has shaken Nangal town in Punjab’s Ropar district, a 45-year-old widow, Ranjana Devi, allegedly ended her life after being harassed by recovery agents from a private finance company. The woman reportedly jumped into the Nangal hydel canal on Wednesday evening after repeated threats from agents demanding repayment of a mere ₹1,000 loan balance.
Ranjana, who earned her living by stitching clothes at home, was the only breadwinner for her two daughters. What began as a small loan meant to improve her livelihood turned into a nightmare that ended her life. Her elder daughter, Anchal, told THE CHANDIGARH NEWS that her mother had borrowed around ₹30,000 from a private finance company based in Una district, Himachal Pradesh, to buy a sewing machine. The loan was arranged through a middle-woman, and Ranjana had repaid it in full through her.
However, recovery agents recently began visiting their home, claiming the loan was still unpaid. “My mother could not trace the middle-woman who took the payments, and she agreed to repay the loan again. But she was short of ₹1,000. The agents abused and pushed her, humiliating her in front of us,” said Anchal, breaking down in tears. “Terrified and ashamed, she jumped into the canal.”
The incident has triggered public outrage and highlighted how illegal and unregulated private financiers continue to exploit poor borrowers in Punjab and adjoining states. Advocate Paramjit Singh Pamma said that several such companies in the region charge exorbitant interest rates, between 5% and 10% per month — equivalent to 60% to 120% annually — in violation of Reserve Bank of India (RBI) norms. “These agents recover money through threats and intimidation. In some cases, they even pressure government employees by approaching their offices. It’s a well-organized nexus of exploitation,” he alleged.
Anchal has lodged a police complaint at Nangal Police Station, naming three recovery agents — Shubam, Sagar, and Abhishek — who were reportedly working for Satya Finance Company of Una district. SSP Ropar, Gulneet Singh Khurana, said that the police have initiated an investigation and assured that strict legal action will be taken against the company and its agents.
The Reserve Bank of India regulates all registered Non-Banking Financial Companies (NBFCs) and Micro-Finance Institutions (MFIs) under the Regulatory Framework for Microfinance Loans, 2022. These rules state that all microfinance loans must be collateral-free, issued only to households earning up to ₹3 lakh per year, and the total repayment obligation cannot exceed 50% of a household’s monthly income. Recovery agents of registered lenders must follow the RBI’s Code of Conduct, which prohibits harassment, threats, or physical intimidation.
Experts point out that while regulations are robust on paper, enforcement remains weak at the local level. Illegal moneylenders continue to operate freely, exploiting borrowers who lack access to formal banking systems and are often unaware of their rights. The tragedy in Nangal has once again exposed this dangerous gap between policy and implementation.
The case has prompted calls for immediate government action to identify and dismantle unregistered private finance networks operating across Punjab and Himachal Pradesh. Social activists are also demanding better borrower protection and community-level awareness about safe borrowing practices.
For Anchal and her younger sister, however, justice may come too late. “We lost our mother for just ₹1,000,” she said softly, her words echoing the deep pain of a family destroyed by debt and harassment.
This tragic incident is not merely a story of financial distress but a powerful reminder of how unchecked lending practices can push vulnerable people to despair. As investigations continue, the question remains — how many more lives must be lost before authorities act decisively against these modern-day loan sharks?