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Micro finance fairytale turns sour in Andhra
Amid Suicides,CM Mulls Law To Check Recovery Agents Ever since Mohammed Yunus of Bangladesh,founder of Grameen Bank,won the Nobel Prize,micro finance has moved into the limelight as a panacea for the poor and marginalized.But a darker side of the picture is unfolding in Andhra Pradesh,which is known as the mecca of MFIs and has by far the largest number of borrowers in India.Over the past couple of months,the state witnessed nearly 16 suicides.
Many of them have been blamed on the strong-arm tactics adopted by MFIs,most of whom initially started out as NGOs but have over the past few years metamorphosed into profit-making entities.
CM K Rosaiah said on Tuesday that the state government would soon issue an ordinance to prevent the harassment.A legislation to check such harassment was pending assent from the President of India.Since the presidential assent is awaited,we are contemplating issuing an ordinance immediately, he said,after meeting the PM.
Tormented by MFI representatives over repayment of a loan,auto driver Mohd Amjad,23,hung himself from the ceiling fan with his wifes sari in his house at Bheemaram in Warangal on Sunday.Amjads wife Kauser had taken Rs 24,000 from two MFIs and the couple was paying Rs 540 towards weekly installment.When they defaulted on this weeks payment,the agents came and abused them.
An anganwadi volunteer,Karri Ammaji,50,of Katheru village in Rajahmundry ended her life by jumping into a well late on Sunday night upset over harassment from MFI agents.Sources said she could not pay the loans she had taken to marry her daughters.
Revoju Nirmala of Tangelapilli village in Karimnagar district consumed pesticide following humiliation by some MFI agents on Monday.She is said to be out of danger.Nirmala took Rs 52,000 from three MFIs,but wasnt able to repay it sometime last week.
On Tuesday,Daralamma,a daily wage labourer,filed a complaint with the police in Narsipatnam in Visakhapatnam district that her daughter Durga Anushka was taken away by the agents on October 9 when she was away in Anakapally for medical treatment.
My sister said the agents accompanied by three self-help group women came to our home and took away my daughter.They threatened that they would release Anushka only after I clear the dues, Daralamma said.
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