Nov 04, 2016

North’s people in peril due to inability to repay loans Featured

People of the north are now deeply in debt as financial companies have granted them small loans after the war on very high interest, say political leaders of the province.

They are in an unfortunate situation of committing suicide due to their inability to repay the loans, TNA MP Sivasakthi Anandan has told BBC Sandeshaya.

His comment came after a 26-year-old woman, unable to pay her debt, jumped into a well along with her child, aged 2 ½ years.

The husband of Naganathan Sugandini has told police that a certain financial firm had come to their home and given a Rs. 25,000 loan to her.

She had been worried as she was unable to pay the loan installments, he said.

The health minister of the north told the media last week that with the return of peace, several micro financial firms arrived in the north and the east.

These firms are accused of using groups of thugs like ‘Ava’ to threaten people who fail to repay the loans, BBC Sandeshaya adds.

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