Traditionally, people without land or work could get loans from landowners allowing them to sustain a minimum livelihood. In exchange to this, they had to live and work on the landowner's land as quasi slaves. Exorbitant debts were charged, and whole families were forced to slave labour for years and even generations, bonded by indebtedness to the landowner and bonded by unequal social relations to sell labour in lieu of the loan taken.
Following the eradication of malaria in the Terai region in the 1950-60s, the large influx of hill migrants marginalized traditionally landowning Tharu people by occupying their lands. While the Tharus had no records of the land they were cultivating, the settlers registered the land in their name, forcing the Tharus to work as agricultural labourers. The customary practice of obtaining a "helping hand for family business" was gradually replaced by the forced labour system called Kamaiya, which in Tharu parlance is tantamount to hardworking hired farm labour.[4] The Kamaiya system existed in particular in western Nepal and affects especially the Tharu people and Dalits.