Jamatikra: Chief Minister Naveen Patnaik had announced interest-free loans up to Rs 3 lakh for women Self-Help Group members (SHGs), a move that would help around 70 lakh women.
But some Non-Banking Finance Companies (NBFCs) are exploiting SHGs by giving loans at higher rates of interest in Attabira and Jamatikra blocks of Bargarh district over some years.
NBFCs are bankers and lenders who provide microfinance services like deposits, loans, payment services, money transfers and insurance.
The importance of microfinance is that it provides much needed financial services to poor households, entrepreneurs and nascent businesses which would otherwise not have access to them. But here in Attabira and Jamatikra blocks, NBFCs are exploiting the ignorance of village women.
The NBFCs have expanded businesses by offering attractive schemes to women. Declaring that they are empowering women they are actually exploiting them with high interest rates.
NBFCs give small loan to businesses. There is no need of much paper work like in banks. They play a very important role in providing credit to small businesses, small farmers and other unorganised entities. Many ignorant women take loans from NBFCs instead of banks.
But in the name of microfinance some cutthroats are engaged extracting lakhs in the district. They have organised groups of women and give them loans. But interest exceeds the loan in most cases.
The interest rate ranges from 22 to 36 percent for loans. Most microfinance companies are demanding three times the interest rate of banks.
Although the women are aware about the high rates of interest, fearing harassment by NBFCs they are maintaining silence.
The NBFC mainly target ignorant village women. As companies give loans at the homes of the women they are taking them without considering the rate of interest.
The government has been promoting women SHGs to make them entrepreneurs. For this, the government is giving loans at very low rates of interest. Due to lack of awareness the SHGs do not know about the schemes and loans of the government. NBFCs are exploiting this.
The women need to produce only a photograph and a copy of their Aadhaar card to get loans from NBFCs. This attracts village women towards NBFCs. The government should have checked whether the NBFCs operating in villages are registered or not.
Sita Tandi of Attabira said, “I took a loan from an NBFC. I have no option but to pay the high rate of interest. My need forced me to do so.”
Minati Middra of Silat said, “I took a loan of Rs 25,000 from an NBFC. The NBFC is now demanding 22 percent interest. It is difficult for me to repay.”
Earlier, the district witnessed cheating by some chit fund companies. The government is unable to pay back the money of the cheated people.
The time has come for the government to act against these NBFCs or else there is a possibility of history repeating again.
PNN
