A man was so traumatised after being dumped into a freshly-dug grave by loan sharks who threatened to bury him alive he has lost his sanity, local media reported today.

Yap Tian Soong, a painter, borrowed RM4,500 in April at an interest rate of RM200 a day, several newspapers said.

When the amount had ballooned to RM33,000 in July he and two friends were taken on a terror ride by the loan shark gang to a Chinese cemetery where he was hurled into the grave.

Yap became hysterical and fainted and his friends rushed him to hospital where he was admitted to the psychiatric ward. Nearly two months later, he is still there.

The case was publicised Sunday by the Malaysian Chinese Association (MCA), which said the loan sharks were trying to get their hands on Yap's apartment, which he had promised to sell to repay the loan.

The head of the MCA public services department, Michael Chong, said the organisation "will help Yap take legal action if the Ah Longs (loan sharks) persist in trying to get the title to his apartment."

Malaysian loan sharks are notorious for their vicious methods of recovering their money plus exorbitant interest. - AFP