The rural poor in Andhra Pradesh, a State showcased as a model for SHG-bank linkage, are caught in the vortex of microfinance. WITHIN a decade of their coming into operation, microfinance institutions (MFIs) have dealt a serious blow to the economy and the well-being of thousands of families in rural Andhra Pradesh. Harassment by their collection agents has allegedly driven at least 60 borrowers to death, and the number is...
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SKS Microfinance threatens to sue over loan repayment
Leading micro-lender SKS Microfinance today hinted that it could move the courts if the recent Andhra Pradesh notification prohibiting collection of loan repayments on a weekly basis is not withdrawn.The notification stipulated that the periodicity of repayment by self-help group (SGH) members to MFIs should not be less than a month, even under existing loan agreements.However, microfinance institutions operating in the state have railed against the move."In the event the...
More »Need to regulate microfinance institutions: AIDWA by Parvathi Menon
Among the several resolutions passed on Thursday by the 9th conference of the All India Democratic Women's Association (AIDWA) in Kanpur, one of the most important ones was on the need to regulate microfinance institutions (MFIs), which are exercising an iron grip on poor women debtors in several States of the country. The resolution drew attention to the “spate of suicides as a result of the harassment and strong-arm tactics employed...
More »MFIs cannot collect interest more than the principal
The accumulated interest collected by microfinance institutions (MFIs) on loans shall not exceed the principal amount, according to the much-awaited ordinance Promulgated by Governor E.S.L. Narasimhan here on Friday to put a check on their activities. However, the interest rate chargeable by the MFIs finds no mention in the ordinance as the government is of the view that this falls under the purview of the Reserve Bank of India (RBI), according...
More »Maya effect: UPA to include annuity for farmers in R&R bill by Subodh Ghildiyal
Mayawati's quick reflexes after the setback over land acquisition in Aligarh has put Congress in a spot, with the Centre fearing it may be dubbed the villain for farmers' woes if it does not prevail upon Trinamool Congress to relent on the bills for Land Acquisition amendment and R&R. After Uttar Pradesh brought its liberal Resettlement and Rehabilitation policy to win over farmers riled by "low land rates" for Yamuna...
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