Community-based moneylenders, who were the fulcrum of economic development in Chennai for several decades, are fast fading.
These small moneylenders, predominantly from the Jain community of Rajasthan, have been in Chennai for over a decade and a half.
The community had localised its trade in the central business district of Chennai, which is popularly known as Parrys Corner (EID Parry has its headquarters here).
The narrow bylanes of the area, known as Sowcarpet, is synonymous with the money lending business in Chennai. The name Sowcarpet is derived from the most powerful and resourceful people within the Jain community called Sowcars, who lent money to smaller money lenders.
Entry of private and large multinational banks has practically wiped out these moneylenders. Banking and finance experts, however, believe that it is not the market forces alone that had a hand in pushing these small money lenders out of business.
Shriram Group's chairman R Thyagarajan says a handful of small moneylenders and nidhi funds going bust prompted the government to enforce stricter laws that sounded the death knell for these moneylenders.
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The present generation of these erstwhile moneylenders have turned to simple trading activities including the famous electronics hardware trade at Ritchie Street here, education, real estate, stock broking and bullion.
Sitting at the famous Jain temple in Mylapore with a small group of his community members, 69-year-old J Mohanlal Chordia recollects how his great grandfather came to Chennai nearly 130 years ago to carry out money lending.
Elders in the community are not too hopeful of the current generation taking their family business ahead. Sampath Raj, a 68-year-old businessman, believes that the current generation of his community is more inclined to work for multinationals. But he isn't disappointed since the times are changing.