The woman's son is undergoing treatment for burn injuries. (Representational)

A woman who was allegedly set on fire by a money-lender after she failed to repay a loan died on Tuesday in a hospital in Nagpur, police said.

Her son is undergoing treatment for burn injuries, police said.

Kalpana Harinkhade's husband Harishchandra had borrowed a sum of Rs 3 lakhs from money-lender Jasbir Bhatia, police said.

"Harishchandra had returned Rs 2 lakh to the accused and was supposed to give Rs 60,000 on May 7. However, when he failed to pay the amount, Jasbir Bhatia poured petrol and set ablaze Kalpana and her son Piyush. She suffered 60 per cent burns while her son suffered 30 per cent. Kalpana died today at GMCH Nagpur," said Inspector Prakash Hake of Chandrapur police.

Jasbir Bhatia, who sustained burn injuries in the incident and is hospitalised, has been charged for murder and will be arrested soon, he added.