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MFI Loan Suicide In Nalgonda

A farmer committed suicide by consuming pesticides, allegedly after being harassed by the collection agents of an MFI.
Hyderabad | 25th October 2010
A farmer committed suicide by consuming pesticides, allegedly after being harassed by the collection agents of a microfinance institution at Yellareddy Colony, Devarakonda mandal in Nalgonda district, on Monday.

According to Assistant Sub-Inspector Hanumanthu, Kondapally Ramulu (40) had taken a loan of Rs. 10,000 from Spandana Spurthy, a microfinance institution, agreeing to pay the loan in 50 equal installments each week.

When the collection agents of the MFI visited Ramulu on Monday for the 20th installment, he expressed his inability and asked for a week's extension. Ramulu is believed to have told the collection agent that the week's Rs. 200 as principal amount, plus interest of Rs. 25 and Rs. 10 as savings would be paid with the next week's installment.

The agent, however, is believed to have refused to wait, and had demanded payment on the spot.

Ramulu then went inside his residence and consumed the pesticides. He died within 10 minutes, even as the collection agent was waiting outside.

After getting to know of the suicide, the collection agent fled from the spot.

Police shifted Ramulu's body to a hospital for an autopsy and registered a case. Sub-Inspector Hanumantu said that cases would be booked against the MFI and the collection agent according to the recently-promulgated Ordinance.

Efforts are on to nab the absconding agent.

Courtesy: INN
filed in:  Suicides, Microfinance, Microfinance Institutions, Loans, Rural Issues, Farmers, Andhra Pradesh Crime
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