Chennai, April 30 -- The Tamil Nadu assembly on Tuesday passed a bill that proposes stringent punishment against loan sharks to protect economically weaker sections.

"The Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Bill, 2025, was drafted because it was necessary to provide a statutory framework to protect vulnerable groups from the aggressive tactics used by money-lending firms," Deputy chief minister Udhayanidhi Stalin said.

"The money-lending entities are resorting to unethical methods of debt recovery from borrowers who are already in financial distress. These actions sometimes drive borrowers to take their own lives, shattering families and disturbing social order," the bill read.

"The bill prohibits money-l...