The issue or case of this woman selling her child to repay loan is indeed serious. What on earth make a mother sell her child to pay loan.
Well it may be because of the hardship she is passing through at that moment in time.
There is no situation that would make a person sell his or her child to pay loan. Human life is more precious than anything else. The said child that was sold could be her saviour at old age. We shouldn't use because of temporary discomfort to lose everlasting comfort.
But there is a saying that says use what you have to get what you need but is decided not to use that saying, maybe she is not that kind of person or no available person there. For me I can't blame her for her deeds maybe she has tried all her best, and find out that there's no other way and the loan customer are disturbing her.
Then she went on to sell her child.
No amount of problem can be equated or exchanged for human life. This last paragraph of your statement can be misleeding. The law does permit it, even religious people forbids it too. So no circumstances should be a reason for doing such, if you are caught you will face the penalty.