Women who have borrowed loan from microfinance institutions hit the streets in Hassan on Friday alleging that the representatives of the institutions were harassing them for loan recovery. However, on the other hand, the representatives of the Association of Karnataka Microfinance Institutions (AKMI) defended themselves in a press conference.
The women, who have borrowed from Rs.10,000 to Rs.40,000 from various microfinance institutions, assembled at the Hemavati Statue Circle and took out a march to the Deputy Commissioner’s office. They raised slogans against the institutions and demanded that the district administration take action against the representatives. Later, they staged a dharna in front of the Deputy Commissioner’s office.
Agile Yogish, a BJP leader, who led the protest, said: “The institutions have been charging exorbitant interest rates for the loans they offer to women. The borrowers have to pay the instalments without fail. If they delay in clearing the dues, the representatives of the institutions visit their homes and harass them. They use all sorts of words to humiliate the members,” he said.
The protesters submitted a memorandum to Deputy Commissioner V. Chaitra, who assured that she would instruct the police to register a complaint if any member files a first information report in this regard.
AKMI
Representatives of AKMI, in a press conference, said there was no option to waive off loans provided by the microfinance institutions. “Our institutes are ready to sit with those who have problems in repaying the loan and ready to reschedule the payment. But, none of our institutions are using coercive measures to recover the loan,” said Panchakshari, a director of the association.
He said the institutions had been functioning as per the guidelines of the Reserve Bank of India. “We take a loan from the banks and offer unsecured loans to families of small income for a higher interest rate. The RBI has allowed us to charge up to 26 percent on the loan. Almost 80 percent of the members have been repaying the loan,” he said.
B.M. Pamadi, Ombudsman of the AKMI and others were present.
