By Uma Sudhir
Responding to Pranab Mukherjee’s call, the biggest MFI in the country, SKS Microfinance has slashed interest rate to 24 per cent and the Andhra Pradesh government said it would set up a joint working group with industry.
This has happened even as a new scam has surfaced in the debate on regulation of MFIs. Benami loans, made possible by collusion of agents.
With no database or checks on who is borrowing how much and for what purpose, and no regulation on multiple loans, overindebtedness is pushing the most vulnerable to the brink.
Meanwhile, former chief minister Chandrababu Naidu has asked people not to repay their loans to the MFIs.