Local group helping villagers get loan at low interest

Kailali, February 28

Locals of Hasaliya VDC in Shivaratnapur, Kailali, often had to borrow money from local loan sharks at an interest between 5 and 10 per cent until a few years ago. The locals had great difficulty paying the high interest rate and would be harassed by loan sharks.

The locals have united to remedy their situation by forming a group that pools money and provides loans very easily at only one per cent interest.

Bikki Chaudhary of Hasaliya VDC borrowed Rs 2,000 from the local Ganga Group when she fell ill a week ago and needed money for treatment. “It was very easy for me to get approval for  loan, and the interest is also very low,” she said.

Another local Tej Rani Chaudhary borrowed Rs 12,000 from the group to buy a pair of oxen. “Earlier, we had to borrow money from money lenders, who would or would not give us the loan, and even when they did, it would be at high interest. This group has helped us a lot,” he said. Locals of Shivaratnapur said that the group was formed to deal with the problem of getting loans. Secretary of the group Kamal Prasad Chaudhary said that they collected deposits and issue loans to the needy.

The group comprises 48 members and saves Rs 50 per month. “So far, we have collected Rs 76,189 from group members,” said Sunita Chaudhary, chairperson of the group.

The group was formed after Sahakarmi Samaj facilitated the Chaudhary community to unite three years ago.

“With the money we save, we plan to construct embankments on the Mohana River and raise awareness against human trafficking in the border area,” said Sahakarmi Samaj Executive Director Ammar Eir.