DHANGADI, FEBRUARY 14
A struggle committee has informed that as many as 44 victims of microfinance companies committed suicide in Kailali and Kanchanpur in the past two years.
The total suicide cases in all nine districts of Sudurpaschim Province is 78.
The committee has claimed that microfinance companies' practice of adding interest to the principal amount has displaced many families from villages.
More than 40 families have gone out of contact due to the microfinance companies in Dadeldhura alone.
After frequent follow-ups by employees of microfinance companies, victims have formed a struggle committee and taken to the street against them.
Microfinance companies lend credit to small groups without collateral and tend to recover their loan by selling land and other properties if group members fail to pay back the loan.
Microfinance victims held a candle light protest rally with lit candles at Attariya of Kailali against microfinance companies today. More than 0.7 million males and females from Kailali, Kanchanpur, and other districts have formed groups and taken credit from micro finance companies.
As per the struggle committee, 44 individuals killed themselves in Kailali and Kanchanpur. Of them, twelve are male while others are female. Similarly, three persons killed themselves in Dadelhura, seven in Bajhang, five in Achham, eight in Bajura, and 11 in Darchula committed suicide.
The committee has launched the nationwide protest from today.
Victims say that microfinances add interest and EMI to the principal and they also charge fine on the interest and EMI amount added to the principal amount.
Nepal Rastra Bank is not oblivious of the hefty interest and wrong practices of microfinances.
But, NRB is turning a blind eye to the problem, say victims.
A version of this article appears in the print on February 15, 2023, of The Himalayan Times.
