Microfinance player calls of curb on rumours of loan waivers

New Delhi, Sep 6 : Vivek Tiwari, Managing Director and CEO of Delhi-based Satya Micro Capital Limited has urged the government to curb rumours of loan waiver.

In a statement, Tiwari said that in the current time, the microfinance sector has faced some new problems amidst the continuing outbreak of coronavirus and the recent lockdown caused due to it and taking advantage of the situation, some anti-social elements are misleading the people by spreading rumours about loan waivers.

He said that most of these unscrupulous groups take people for a ride by cleverly carrying out membership campaigns and collecting Rs 500-1,000 from the members in the name of carrying out fight or protest, or to launch agitation for debt forgiveness, while using the collected funds for their personal benefits.

However, most of the people remain careful about their credit score and do not fall prey to anyone. Even in Punjab, despite their attempts to mislead people, more than 80 per cent of the individuals have paid their installments on time, which is truly encouraging, he said.

“Keeping in view the sensitivity of the issue, it has become imperative that the government must curb such fraudulent elements and take legitimate action against those who generate and encourage any kind of skepticism,” the company statement said.

The micro-finance company has also advised the government to set up a couple of grievance redressal cells for micro-finance institutions where appropriate solutions to such issues can be provided.

Tiwari said: “The entrepreneurs who fall prey to unscrupulous elements unfortunately ruin their credit worthiness. They get caught in the clutches of the rumour mongers and become dependent on them, and finally their entire business gets ruined and they lose their respect and basic eligibility to get loan for financial inclusion and enterprise development.”

Disclaimer: This story is auto-generated from IANS service.