They are exploiting illiterate women dwelling in slums, says Samiti
Members of Tumakuru Zilla Kolegeri Hitharakshana Samiti and Slum Jana Andolana-Karnataka staged a dharna in front of the Deputy Commissioner’s office in Tumakuru city on Friday demanding a ban on micro-finance institutions which are exploiting poor, illiterate women dwelling in slums.
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The agitators alleged that the micro-finance institutions are converting their black money into white by lending money to women self-help groups. They give old Rs. 500 and Rs. 1000 notes as loans to the women but demand repayment in Rs.100 or Rs.50 denomination or in Rs.2,000 denomination.
If the women fail to repay the instalments in denominations of Rs.100 or Rs.50, they harass them and abuse them using foul language, alleged agitator Siddamma.
Though the institutions promise that they are giving loans at 2 to 4 per cent they charge 24 to 36 per cent per annum, alleged another agitator, Govindamma.
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Convenor of Slum Jana Andolana-Karnataka, A. Narasimhamurthy, alleged that there are many women self-help groups such as Jana Lakshmi Sangha, Spandana Sangha, S.K.S.Sangha, B.S.S. Sangha, Dharmasthala Manjunath Sangha, and Grameena Koota which give loans from Rs.20,000 to Rs.40,000. The women who have taken loans have to pay Rs.418 to Rs.480 per week in 18 instalments.
He said the women are being harassed by micro-finance institutions as they are not able to get work due to demonetisation and are unable to repay the weekly instalments.