A 35-year-old woman was allegedly abducted in the city after her husband failed to repay a loan.
Police rescued her and arrested Srinivas, a private money-lender, and two others on the charge of kidnapping, outraging woman's modesty and other relevant offences under the IPC.
Srinivas had lent Rs 4 lakh to the woman's husband who works as a watchman one and a half years ago.
The woman's husband repaid Rs 1 lakh, but couldn't pay off the balance and the interest.
"Last night Srinivas and two others went to the watchman's house and after asking where he is, they dragged his wife to a car and abducted her," inspector A P Anand Kumar of Amberpet police station said.
After the woman's son lodged a complaint, police formed three teams to search for her. The woman was rescued while being taken to Nizamabad and Srinivas and two others were arrested.