JAGATSINGHPUR: Despite Government’s claims of increasing banking coverage in rural areas, suicides by borrowers due to harassment by private money lenders have raised serious concern.
As many as ten such suicides have been reported from across the district in the last four years. One such incident was reported from Ajagarbedi village within Erasama police limits on Wednesday last where one Sita Mali committed suicide after failing to repay a loan of Rs 40,000 which she had taken from a private money lender.
The amount Sita owed to the lender had gone up to Rs 1,00,000 with interest and since she could not repay the amount, she was threatened with dire consequences. Unable to bear the mental torture, she hanged herself. Sita’s father Pravas Mandal of Kharnasi village lodged an FIR with Erasama police limits and the matter is under investigation.
Since availing loans from banks involves elaborate documentation, people from villages often prefer going to the local money lender for money. The lenders charge a whopping 10 to 12 per cent interest every month and keep documents of houses, vehicles and even ATM cards as surety. They also use numerous intimidating tactics to recover the loans.
In 2015, one Rabindra Muduli, a farmer of Bariamula village within Balikuda police limits committed suicide after failing to repay a loan of Rs 80,000 from a private money lender and Rs 10,000 from a self-help group for cucumber cultivation on his six decimal land. Scanty rainfall dashed his hopes of a good yield forcing Rabindra to take the extreme step.
In 2017, one Rasik Kandi of Dhanurbellari village within Balikuda police limits died of cardiac arrest after his paddy crop cultivated on five acre land was damaged due to untimely rainfall. He too had taken a loan from a private money lender.
Manager of UCO Bank Satish Patra said it is illegal to extend loans to people without obtaining licence from Reserve Bank of India.He said banks are not empowered to take action against private money lenders and added people should avail loans from nationalised and cooperative banks.