As many as 30 rural borrowers have committed suicide in Andhra Pradesh in the last few months following their inability to pay back loans taken from microfinance institutions at exorbitant interest rates.
With one more case of suicide due to harassment by a microfinance institution coming to light, the Andhra Pradesh government has been jolted into action against the serious irregularities and arm-twisting methods for recovery of money that MFIs adopt.Andhra Chief Minister K Rosaiah, while issuing a stern warning to the microfinance institutions against charging exorbitant rates of interest and harassing the rural poor, said that the state government will promulgate an ordinance to regulate the activities of the MFIs and will not allow the harassment and exploitation of the poor and women.Rosaiah, who also had a meeting with the officials and the bankers on the issue on Wednesday, has convened a cabinet meeting on Thursday to discuss the MFI issue.more at rediff
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