‘We borrowed to survive, now we live in fear’: Microfinance’s dark side
- Alka Dhupkar
- TNNUpdated: Feb 26, 2025, 18:59 IST IST
Four people, trapped in what feels like an unending cycle of debt due to loans as small as Rs 30,000, tell us how they landed in this hole and why they have very little hope of ever climbing out of it.
As the number of people struggling to repay small loans that they took from microfinance companies rises across the country, questions are being raised not just about the state of the economy but questionable lending practices as well.
A study carried out by MFI Network India, an association representing microfinance industry, has revealed that around 50 lakh Indian households have taken loans from four or more microfinance firms, that’s nearly 6% of all microfinance borrowers.
A study carried out by MFI Network India, an association representing microfinance industry, has revealed that around 50 lakh Indian households have taken loans from four or more microfinance firms, that’s nearly 6% of all microfinance borrowers.