19th Mar 2018 11:03:PM State
Eastern Sentinel Arunachal News

ES Reporter

ITANAGAR, Mar 19:The representatives of various women Self Help Groups, NGOs that are lending microloans has called for review of the Arunachal Pradesh Money Lending (Regulation) Bill 2018 passed recently during the budget session citing some of its provisions as intrusive and against their interest.

In a press conference, Tunum Soki has stated they will oppose the bill tooth and nail for being discriminatory while expressing fear that if the bill is implemented then it will have far reaching effects on the decade’s old money lending operation in the state.

Also alleging that the government formulated the bill without their consent and constituting impact assessment team to examine its consequences, Soki sought the governor’s intervention in the matter and urged him not to sign the Bill considering its impact on women SGHs in the state.

Justifying her demands, Soki stated that moneylenders have been around for generations playing an active role in lending money to people with less access to banking activities, or in situations like medical emergencies, educational purpose and business activities etc.

“We are the ones who are providing monetary help to needy people during emergencies which the banks can’t give.  It is a bitter truth, which the government must accept,” she added.

Divulging that such groups are being run by unemployed housewives to help each other during emergencies, she informed that participants in such a group contribute an agreed sum of money to a pool on a daily, weekly, or monthly basis.

“The pooled amount is later awarded to one member of the close-knit groups at a time on need basis and sometimes loaned to needy people with minimum interest. The transaction is purely based on trust and we don’t force anyone to borrow money from us also,” she added.

Over the allegation of levying exorbitant rate of interest which ultimately land borrowers in perpetual debt, Millo Yassung termed such allegations as baseless and false while claiming that ‘we are guided by rules and regulations too.’

She explains that the interest rate varies for person to person. "If the borrower is a business man than we charge more according to capital, but when it’s about medical emergencies then on humanitarian ground we charge only 3 to 4  percent rate of interests,” she informed.

“If we don’t charge minimum interests then how will our organization grow and run. Also if we stop this operation then where will people in need of financial aid go? Can the Govt. or banks provide monetary support  to people in emergencies in a very short time like we do? ” she questioned.

Also referring to the clause of the Bill which specified that charging 5 to 10 percent interest over loans is punishable, she termed it  as against their interests  while alleging that government has no right to rule over them.

The women however stated they are ready to follow, if government brings certain provisions under the bill like registration, licensing, and regulation of their activities. But before that govt should help them in  recovering all pending dues from borrowers, they stressed.

They raised concern that if the bill is implemented then all their present borrowers whom they have given loans will walk free.


Kenter Joya Riba

(Managing Editor)
      She is a graduate in Science with post graduation in Sociology from University of Pune. She has been in the media industry for nearly a decade. Before turning to print business, she has been associated with radio and television.
Email: kenterjoyaz@easternsentinel.in / editoreasternsentinel@gmail.com
Phone: 0360-2212313

<< Back to News List