Nayagarh, Mar 27: A money lender was allegedly killed by the borrower for a small  hand loan at Gadadharprashad village under Itamati police limit in  Nayagarh district on Friday.

The victim money lender has been identified as Ramesh Muduli, and the accused as Laxmidhar Rout, a native of Govindpur village.

Itamati police said that Ramesh Muduli had lent twenty thousand rupees to Gola Rout as hand loan. As per the verbal agreement, Gola repaid Rs 19, 000 to Ramesh on Friday evening. Ramesh insisted on refund of another Rs 1,000 as interest from Gola. However, the borrower refused.

As a result, an oral spat broke and turned violent. Meanwhile, Ramesh’s son assaulted Gola.

Aggrieved, Gola’s son Laxmidhar Rout hacked Ramesh with a chopper in the evening and fled from the spot. Consequently, Ramesh sustained injuries and was rushed to Nayagarh district headquarter hospital for treatment. But he died later.

Itamati police has lodged a case in this connection and sent the body for postmortem. The accused is yet to be nabbed, said the police .