Micro-financing companies have been harassing women who were unable to repay loans due to lack of income during COVID-19 lockdown, according to a survey conducted by All India Democratic Women’s Association.
Talking to reporters here on Sunday, its State secretary S.K. Ponnuthai said the association conducted the survey among 1,387 women in 30 districts two months back. Among those surveyed, 192 women were from Madurai city and 51 women from rural areas.
They revealed that they had to borrow from the micro-financing companies, government banks and moneylenders even to pay house rent and meet health, marriage, funeral and educational expenses and repay interest for the already obtained loans. “In some cases, the women had pledged their land documents, ration cards, Aadhaar cards and jewellery to meet their family expenses during the lockdown when many of the families had lost their regular income,” she said.
When they were unable to repay loans with interest that ranged from 5% to 27%, the representatives of micro-financing companies abused them in a filthy language. “Some of them revealed that they had even attempted to end their lives,” Ms. Ponnuthai said.
Their representatives used to visit houses of borrowers as early as 6 a.m. and also at odd hours like 11 p.m. They used to wait for long hours in front of their houses to put pressure on the women to repay the loan instalments.
The survey revealed that the women had borrowed more money after the COVID-19 pandemic.
Moratorium
The Madras High Court had ordered that the micro-financing companies should not use force while collecting loan dues during the lockdown and consequently the Reserve Bank of India announced a six-month moratorium for the borrowers to repay loans. However, the behaviour of the representatives of micro-financing companies never changed. “They targeted single women, widows and families led by women,” she alleged.
The association appealed to the State government to put an end to such illegal tactics of the micro-financing companies and to make efforts to waive interest for the loans the people had taken during the lockdown. Additional time should be given to them for repayment of loans.
The State government should provide financial assistance for women to start businesses and the loan amount of single women should be waived. Special officers should be appointed in every district to monitor the functioning of micro-financing companies and action should be taken against those who were using pressure tactics, resulting in women attempting to end their lives.
The Centre should allocate additional funds under Mahatma Gandhi National Rural Employment Guarantee scheme to ensure jobs for more people and the scheme should be extended to urban areas too. The State government should provide ₹7,500 monthly COVID-19 assistance for at least six months, she said. Association district secretaries R. Sasikala and C. Muthurani were present.
