Sidr victims turn to loan sharks as NGOs suspend lending
Sidr-affected people in Patuakhali district are turning to local loan sharks as NGOs suspended their micro credit activities.
The affected people are compelled to take loans 15 to 20 percent monthly interest from them to restart economic activities.
Talking to this correspondent, Sobhan Gazi, 45, of Panpattee union under Galachipa upazila said, "I had a small shop at Panpattee launch terminal, set up with a loan of Tk 20,000 from SAP (South Asia Partnership), a local NGO. It is totally damaged by Sidr.
“I could not reset business even one month after the hurricane for lack of money. SAP stopped realising loan installment and is not giving fresh loan also.
“I took a loan of Tk 35,000 from Mizanur Rahman, a local loan shark”, Sobhan said.
Like Sobahan, there are many including Jabbar and Khalil in the area who took loans from loan sharks at 15 percent monthly interest.
When contacted moneylender Mizanur Rahman said, "If I keep my money with a bank it will give interest. Why should I not realise interest from an individual?”
Sufia Begum, 36, of Charkhali village in Mirzaginj upazila used to make paper-bags with Tk 10,000 loan from Uddipon, another local NGO.
After Sird washed away whatever she had, Sufia went to the NGO office for a fresh loan but they refused. Its officials told her that their credit activities is stopped till March 31 next year. Sufia then took Tk 5,000 from a loan shark at 20 percent monthly interest.
Kuddus Howlader, Morium Akhter and Fuljan Bibi of the same village also took loans from loan sharks at high interest rate as local NGOs suspended loans.
Many people who lost houses and small business like duck farm, poultry farm, vegetables farm, shops have not turned to local loan sharks to restart their business, they said.
Selim, a small trader at Bahalgachia in Patuakhali Sadar upazila said, “I took Tk 10,000 from SSDP, a local NGO and only one installment is outstanding. I went to SSDP office and offered to pay the installment and take a fresh loan but they refused. They told me that their loan activities are stopped”.
Afsar Habib, an official of CODEC (Community Development Center), admitted that loan sharks are cashing in on the helpless condition of affected people as NGOs temporarily stopped micro credit.
Abdul Mannan, an official of SAP, said, affected people will be in clutch of loan sharks if NGOs do not restart loans soon in affected areas.
Patuakhali Deputy Commissioner AGM Mir Moshiur Alam at a meeting with local NGO officials on Thursday asked them to give fresh loans keeping installment realisation suspended for a certain period to allow affected people to restart small businesses.
At the meeting, the NGO officials said they do not have sufficient funds to disburse fresh loans as previous loans are not realised.
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