Women Struggle to Repay Loans Taken From Microfinance Institutions in India
Monday, December 19, 2016
The demonetisation of Rs. 1,000 and Rs. 500 notes has severely affected women who had borrowed loans from microfinance institutions. While some of them have resorted to mortgaging gold and sell household items to pay weekly instalments, there have been cases where some attempted suicide as they were unable to bear the burden of repaying the loans.
The representatives of the microfinance institutions, who lend money at a high rate of interest of up to 25 per cent, are forcing members to clear the dues, irrespective of whether they are earning or not.
Azmath Unnisa (35), a resident of Pension Mohalla in Hassan, borrowed a total of Rs. 59,000 from three women Self Help Groups attached to three different institutions. She has to pay Rs. 800 back every week, besides another Rs. 1,450 per month. “I get Rs. 20 for binding a bundle of beedi. Everyday, I bind four to five bundles and manage to earn about Rs. 100. Besides this, I work as a maid in a house, from where I earn Rs. 2,000 a month,” she said.