Tamil Nad

‘Micro finance firms insisting on payment of interest’

Stating that various micro finance companies are pressuring them to repay borrowed loans and interests during the lockdown period, members of various women self help groups have decided to submit a petition to the Collector on June 29 to initiate action against those companies.

A meeting was held here in which members affected by the micro finance companies participated.

S.T. Prabakaran, District Treasurer, Communist Party of India, S. Chinnasamy, State Secretary, AITUC, and other functionaries spoke on the occasion.

A resolution passed in the meeting said that many micro finance companies functioning in the city had provided loans to the daily earners and self help groups and were collecting interests from them regularly. “Lockdown led to the workers losing their livelihood and are facing difficulty as normalcy is yet to be restored”, the resolution said.

The resolution said that the Central government and the Reserve Bank of India had clarified that interest for borrowings and other repayments related to loans for the period from March to August can be paid in instalments without additional interest. But these companies impose additional interest for non-payment of interest and also fine for delayed payments.

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