Hyderabad,
In an effort to rein in unscrupulous microfinance institutions, the state government has prohibited women self help group members availing loans from multiple sources, which often lands them in a debt trap.
The Governor, Mr E.S.L. Narasimhan, cleared on Friday the ordinance to rein in MFIs, which also restricts women from becoming members in more than one SHG.
Further, the ordinance warns that Micro Finance Institutions should on no account collect interest which exceeds the principal amount of the loan.
Several suicides had occurred in the state in recent weeks after agents of MFIs harassed borrowers for delaying repayment of one or two instalments.
MFIs, as expected, are not amused by the ordinance and cautioned the government against the move.
Call 155321 for complaints against MFIS
0 comments:
Post a Comment