Sunday, 3 June 2018

Village loans 60% to 120%

My village people take loans as 'aidhu roopaayi vaddi' ('5 rupee interest', or 5/- per 100/- per month, or 60% annual interest) or double at 120% interest. As they service the loans, they sell away their meagre assets.
One essential intervention is to create a fund from where village women can borrow for health needs at low interest. If its a group fund, group pressure will usually keep the repayments in order.
Paalaguttapalle (Dalitwada)•
Vidyasankar Sundaresan Isn't there a law against such usurious interest rates?
Aparna Krishnan The village poor have access to no structured loans. We used to be able to put in our land passbooks and get some loans against that. the landless have nothing. These loans are actually their lifeline. Though they get bled completely later. 'Eidhu roopai vaddi' is standard. In certianurgent needs it is 'padi roopai vaddi'.
Aparna Krishnan In how many million ways the rich are secured as compared to poor, we cannot even begin to realize. Also as money generates more money, and poverty creates its own downward spiral, the ever widening gaps are given, i suppose.
Vidyasankar Sundaresan That is really unacceptable. Sounds like some good micro financing is needed.
Aparna Krishnan we need crop insurance, we need drought relief, we need micro finance. All equally critically. The government's concerns are very different. Every government is for and by the corporate. The current one even more so.
Komakkambedu Himakiran There are laws, but are they written in the languages of the people? Are they taken to the people?
Back in the day, all laws of the land were taken to every corner of the kingdoms by drummers. That's the tradition. As recent as 2 years ago, I saw one person do that in a town in Tamilnadu.
Aparna Krishnan Even if the laws are known, where will Munishwari go for money for her medicines ? She goes to the Bandakadapalle lady and takes at 5 rupee vaddi, or if refused there to Varadampeta at 10 rupee vaddi. If I get those two ladies jailed, she will be the first to petition for their release. We have cornered them completely.
Aparna Krishnan Yes, the laws are mostly incomprehensible to me, and totally so to the poor of the land. And the language, and frameworks alienate totally. It almost seems cast in iron and impossible to break - the centralization in every detail.
Aparna Krishnan We have our totivadu who goes with his drum to the local santas with details of local meetings and programmes.
Like • Reply • 20 April 2016 at 16:34

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