With the exploitation of tribal farmers in Pachamalai by money-lenders under usury, village panchayats in the hills have taken special initiative to sensitise the masses to the evils of usury. The residents take loan from moneylenders for domestic functions and repay it in a fixed term that ranges between 10 months and two years.
Although the tribal farmers repay the dues promptly, the rate of interest is higher than that of nationalised banks. The moneylenders release the loan only after deducting a part towards interest.
In an effort to wean away tribal people from usury, the Nachillipatti village panchayat on the hills has initiated a special measure through wall-paintings at various places across the panchayat. The wall paintings carry heart-rending slogans with a warning message against the evils of usury.
According to official sources, exploitation of the poor tribal farmers and agricultural labourers by the moneylenders had been brought to the notice of the banks. A nationalised bank in Keerambur has been advised to cover Pachamalai under financial inclusion programme after the Assembly elections.
With the model code of conduct in force, programmes could not be organised on the Pachamalai. The awareness programme on financial inclusion, would, among other things, include explore the possibility of developing savings habit among the tribal farmers and for sanctioning loans.
