The Hindu : Other States / Jharkand News : Need money? Borrow it at 50 per cent interest

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Monday, Sep 13, 2004

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Other States - Jharkand

Need money? Borrow it at 50 per cent interest

RANCHI, SEPT 12. For years, poverty striken tribal families followed in the footsteps of their ancestors by approaching moneylenders in exigencies like farming or sickness.

In the hills of Pakur in Jharkhand's Santhal Pargana, the tribal family this season borrowed Rs 500 from a moneylender at 50 per cent interest.

``If we fail to repay the sum within six months, the mahajan (moneylender) will take our pair of bullocks. We will get back the livestock after we return the amount besides the cost of fodder that had been spent by him during the period,'' says Rameshwari, one such victim.

``I am worried how to pay back following the drought situation'', says Rameshwari who is not the only person to live in such adverse and despair conditions in the backward Santhal Pargana division.

Gram Pradhan of Amirjola in Pakur, Maleshwar Deheri, says ``people go to mahajans as they know they will not get anything from the government...We don't even have basic facilities here''.

Taking up the challenge, a voluntary organisation- Badlav Foundation, has formed 509 mahila sabhas comprising 10 or more members in Dumka, Pakur, Deogarh, Godda, Sahebganj and Jamtara districts of Santhal Pargana.

``We have taken up the challenge to stop the poor tribals selling their agriculture produce to the money-lenders at ridiculously cheap rate in order to free themselves from the debt trap,'' secretary of the foundation Bajrang Singh told visiting journalists in Pakur.

Each sabha has 10 or more members who contribute between Rs 10 and Rs 20 and take loans among themselves at minimum interest rate. The money is deposited in any nationalised bank situated in their respective areas, Singh says.

According to RBI guidelines, the banks give loans to the sabhas four times of the amount deposited in the banks and minimum balance should not be less than Rs 5000,'' he says.

``Earlier moneylenders used to exploit the tribals. Now it has been reduced though it must be happening in isolated places. With awareness among tribals on the rise, some of them even take money from moneylenders and don't return it,'' says Deputy commissioner of Pakur Baidehi Mishra.

``Some self-help groups have been formed among the tribals, pooling money and taking loans from it,'' he adds.

``Unless anybody comes up with a complaint against money- lenders, how can we initiate action. No one comes up with protests against them,'' says Deputy commissioner of Dumka Jaishanker Tiwari.

Referring to loans being taken from moneylenders by the tribals for cultivation, Tiwari says kisan credit cards had been distributed among 20 per cent of paharia tribes and efforts were on to distribute the rest by March 31 next.

He also suggests cultivation of `Barbati' (a species of French bean grown in hilly areas) can fetch good market price. It can be grown with assistance of `Adivasi Sahakarita Vikas Niyogen Limited', a government undertaking. - PTI

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Need money? Borrow it at 50 per cent interest