PALAKKAD: More and more women end their lives after taking loans from the micro-finance units in Alathur but, reportedly, it is women who are putting their fellow group members, more than the companies’ employees.Though efforts have been made to prevent women from relying on the micro-finance companies and, instead, approach the banks, several of them find the units an easier option as they release money quickly. Moreover, they need not go through the “never-ending” procedures.
There is another set of women who avail loan from the commercial banks and then turn to micro-finance units to find the fund to make its repayment.
“A survey conducted by the Kudumbashree in Palakkad district on money lenders and their effect on women found the micro-finance units entice the members of the ayalkootams of community development societies to join the scheme. The kudumbashree has tied up with co-operative banks and introduced the interest subvention scheme whereby the women get loan by paying 4 per cent as interest. The banks give loans upto Rs 3 lakh at 12 per cent and 8 per cent of the linkage loan is repaid under various interest subvention schemes. However, women prefer not to suffer procedural delays and opt for easy money,” said Kudumbashree assistant district co-ordinator S V Premadas, who said the survey report will be soon submitted to the State Mission.
The police are unable to act as these micro-finance units function as per the RBI norms. “Many local activists have complained to the police of the harassment meted out by the firms. There should be a mechanism to prevent micro-finance units from giving loan to a woman, who has availed loan from other units.”Though it can be verified online as in the case of banks, the finance firms willfully drive the poor women into a debt trap.
Alathur DySP Krishnadas said, “If women avail loan and then set up any small-scale units with the sum, then it can be encouraged. But they often use it to pay off the instalments due on the other.”But the women do it out of desperation, according to Santha, who lives in a thatched house in Neelikalkad colony and has taken loan along with her group members.
“The average wages in Alathur, which is an agrarian belt, is Rs 500 and Rs 300 for men and women respectively. But with quarries getting closed and rain making things unpredictable, one can’t hope to get work on everyday”, said Santha. And it is these confusions and tensions the micro-finance companies capitalise on.
“The Government is looking into the death of women after availing loans. Kudumbashree provides loans at 4 and 5 per cent. Moreover, there is the Kerala State Backward Classes Corporation under my department, which disburses loans at 2.5 and 3 per cent. It gives Rs 1 crore as loan to each community development society of Kudumbashree. Yet these women depend on the sharks", says A K Balan, Minister for the Development of Scheduled Castes & Tribes.
(Concluded)