Andhra Pradesh   

‘Let MFIs give loans'

SANGAREDDY: B. Vijaya Lakshmi of Chidruppa village and Nagamma of Nagapoor village are part of a group comprising 200 women that arrived at Collectorate on Wednesday with a different demand.

Amid controversy over the role being played by Micro Finance Institutes (MFIs) in lending money and collecting high interest rates, the women demanded the administration not to stop the MFIs from extending loans to the poor, particularly in villages.

“I make a living by running petty business. I have a loan of Rs. 20,000 from L&T, Rs. 15,000 from Basix, Rs. 20,000 from Spandana, in addition to Rs. 10,000. My monthly repayment comes around Rs. 5,000 which I am able to pay,'' says Vijaya Lakshmi.

Worried

Due to the controversy, these MFIs have stopped extending loans and collecting the amount. Now she is a worried about how to raise money, whenever required, to run her business.

Support

Her argument gets support from Bhumamma and Shantamma from Andol who are also part of the group, and are into some petty income generating activities.

“Banks never come to our door step to extend loans whereas with in a week we are able to get loans from MFIs depending on our requirement. Can we get the same loan facility from the banks?'' they ask.

Wrong decision

Asked about the suicides and also about the loanees running away from villages, they said that it could be the fault of the loanees who perhaps failed to invest the amount in revenue generating business.

“Just because somebody took a wrong decision and failed to utilise the finances properly, why should we be penalised for that?'' asks Bhumamma.

Later, they submitted a memorandum to the officials in this regard.

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