Stories of distress from small borrowers
Across India, women borrowers are finding it tough to repay small loans. The next few months will be critical
Unless there is a sharp recovery, MFIs and banks (with micro-loan portfolios) will have to restructure or write off loans though the situation will not be clear until November
NEW DELHI : Sarama Koyal does not have a roof over her head. After the Amphan super cyclone ravaged her home in South 24 Parganas district of West Bengal in May, all she could afford was a black tarpaulin sheet. Despite this, what’s giving her sleepless nights is the repayment schedule of four micro-loans she took from banks and financial institutions. Over the past two years Koyal has borrowed ₹230,000; this includes a fresh loan from Bandhan Bank last month, to help repay a previous one from the same bank.