JOIN USFear of debt and the politics of lending in Tamil film industry
The high interest charged by financiers is a problem the film industry in Chennai has been grappling with for at least two decades.
In 2003, producer G Venkateswaran, brother of director Maniratnam, killed himself, reportedly because of pressure from financiers. Thirteen years later, another producer, Ashok Kumar, also took his own life in similar circumstances.
And, in both instances, Anbu Chezhian, financier and political heavyweight, was blamed. The interest producers pay is anywhere between 28 and 48 per cent.
Tamil film producers feel the Covid-19 pandemic is a very difficult period not just for theatre owners but for them too as financiers are not reducing the interest rates for the money borrowed. Many of them are struggling to pay even half of the interest amount during the pandemic months.
Producer G Dhananjayan told DH not a single financier had taken the lockdown into account. “The reason they give is simple: ‘Why should we reduce interest when the government has not reduced interest for loans taken by the common man?’ They say even the government charges interest on interest,” he said.
The financiers are categorical, Dhananjayan said, that producers pay interest as before, or return the principal. “They are giving us time, but no financier is ready to reduce or waive the interest,” he said.
People in the industry go to financiers even when they know the interest is high. “And we pay up because we need to be in the business,” another producer said.
Many producers are exploring the option of releasing their films on streaming platforms.
“If you are lucky, you get a loan at 28 percent. But that is only if you are lucky,” he added.
Now, many producers are exploring the option of releasing their films on streaming platforms.
Livelihoods are affected too. While shootings for serials have begun with certain restrictions, those associated entirely with cinema have been left in the lurch. Many have taken up temporary jobs to sustain themselves.