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Loans

Madhya Pradesh Chief Minister Kamal Nath's nephew Ratul Puri (C) leaves Enforcement Directorate office after being arrested in connection with a Rs 354 crore bank loan fraud case. Puri was placed under arrest under the provisions of the Prevention of Money Laundering Act (PMLA).

PTI Photo/Arun Sharma

Madhya Pradesh Chief Minister Kamal Nath's nephew Ratul Puri leaves Enforcement Directorate office after being arrested in connection with a Rs 354 crore bank loan fraud case. Puri was placed under arrest under the provisions of the Prevention of Money Laundering Act (PMLA).

PTI Photo/Arun Sharma

Talat Syed, a shop-keeper at his 'Maanjha' shop in Bareilly. Makers of the Bareilly's famed "Maanjha" (a special kite thread) say they had to take loans after demonetization which they are unable to repay.

PTI Photo

Vijay Mallya leaves the Westminster court in London on September 12

Photograph by Getty Images

Tamil farmers performing a mock-hawan during a protest for loan waiver and drought-relief package, at Jantar Mantar in New Delhi.

PTI Photo by Atul Yadav

Farmers from northern Paraguay protest in downtown Asuncion, Paraguay. Farmers have been camping out in protest since July 10, demanding the government forgive debt they accumulated when the harvest failed due to lack of rain and intense cold.

AP Photo/Jorge Saenz

Tamil farmers stage a mock-funeral during their protest for loan waiver and drought-relief package, at Jantar Mantar in New Delhi.

PTI Photo by Kamal Singh

Maharashtra Minister of State for Agriculture and Horticulture Marketing and Textiles Sadabhau Khot beating up a 'dhol' during celebration of State government's announcement for farm loan waiver at a function in Karad, Maharashtra.

PTI Photo

Tamil farmers during their agitation for loan waiver and compensation for crop failure, at Jantar Mantar in New Delhi.

PTI Photo by Manvender Vashist

NCP Chief Sharad Pawar with Maharashtra Pradesh Congress Committee (MPCC) President Ashok Chavan and other leaders during a protest rally demanding farmers loan to be waived by state government at Panvel.

PTI Photo

Tamil Nadu farmers celebrate at Jantar Mantar in New Delhi as the Madras High Court has directed the State government to waive loans of all farmers in cooperative banks.

PTI Photo

The team of P2P website Lendbox in their office in Delhi

Photograph by Sanjay Rawat

request for a loan 25 lakh was processed in a wee

Photo by Amit Haralkar

Rs 5 lakh loan was granted in three working days

Photo by Tribhuvan Tiwari

Activists of youth wing of Congress party shout anti-government slogans standing over a police barricade during a protest against businessman Vijay Mallya.

AP Photo/Manish Swarup

Reserve Bank of India (RBI) Governor Raghuram Rajan addresses a press conference at the RBI headquarters in Mumbai. EMIs on auto, home and other loans are set to go up after RBI Governor Raghuram Rajan unexpectedly raised the policy rate by 0.25 per cent after a gap of almost two years to keep inflation under check, sending the stock markets into a tizzy.

AP Photo/ Rajanish Kakade

President Barack Obama signs the bipartisan bill to cut student loan interest rates in the Oval Office of the White House in Washington. The bill has been awaiting Obama's signature since earlier this month, when the House gave it final congressional approval after a drawn-out process to reach a compromise in the Senate. The bill links student loan interest rates to the financial markets. It would offer lower rates for most students now, but higher ones down the line if the economy improves as expected.

AP/PTI

Did he, did he not? Farmer Monju Aharwar of Gidhkini village in MP

Sanjay Rawat

“Only the big Brahmin farmers benefited. We are still awaiting relief after a decade of drought.” Malthu Chamar, Gidkhini

Sanjay Rawat

“If they want to seize my land, they can do so. I have no money to repay the loan. What can I do?” Ram Baran, Pavesura village

Sanjay Rawat

“The crops failed soon after the loan relief offer...so after that we’ve only borrowed but not paid back.” Gajanan Puri, Waifad

Apoorva Salkade

“I have had loans for the past 20 years. I don’t know how much is interest or principal anymore.” Bhanudas Zoting, Dorli village

Apoorva Salkade

Yogendra Singh, Age 45, Kanchanpur village of Dhaulpur District of Rajasthan. UPA’s populist trumpcard of 2008—the farm loan waiver—has fallen short of its intended target, as a CAG audit found a big Scam in Farm Loan waiver scheme.Year 2008 Union finance minister P. Chidambaram announces farmer debt waiver and relief scheme in budget but now CAG audit of 1,00,000 cases in 800 bank branches reveals holes in implementation and monitoring of scheme. Large number of farmers did not get loan waiver/debt relief certificate.

Sanjay Rawat

Ram Baran, Age 40, Pavesura village of Dhaulpur District of Rajasthan. UPA’s populist trumpcard of 2008—the farm loan waiver—has fallen short of its intended target, as a CAG audit found a big Scam in Farm Loan waiver scheme.Year 2008 Union finance minister P. Chidambaram announces farmer debt waiver and relief scheme in budget but now CAG audit of 1,00,000 cases in 800 bank branches reveals holes in implementation and monitoring of scheme. Large number of farmers did not get loan waiver/debt relief certificate.

Sanjay Rawat

A farmer in Madhya Pradesh. UPA’s populist trumpcard of 2008—the farm loan waiver—has fallen short of its intended target, as a CAG audit found a big Scam in Farm Loan waiver scheme.Year 2008 Union finance minister P. Chidambaram announces farmer debt waiver and relief scheme in budget but now CAG audit of 1,00,000 cases in 800 bank branches reveals holes in implementation and monitoring of scheme. Large number of farmers did not get loan waiver/debt relief certificate.

Sanjay Rawat

Farmers at Pavesura village of Dhaulpur District of Rajasthan. UPA’s populist trumpcard of 2008—the farm loan waiver—has fallen short of its intended target, as a CAG audit found a big Scam in Farm Loan waiver scheme. Union finance minister P. Chidambaram announces farmer debt waiver and relief scheme in budget but now CAG audit of 1,00,000 cases in 800 bank branches reveals holes in implementation and monitoring of scheme. Large number of farmers did not get loan waiver/debt relief certificate.

Sanjay Rawat

Passed over? Ram Charan Singh displays his bank pass book

Tribhuvan Tiwari

The PM interacting with debt-ridden farmers of Koljhari village, Maharashtra

Sonia Gandhi hands over a no-dues certificate to a farmer in Loni village, Ahmednagar, 2008

PTI

Minting gold George Alexander Muthoot and M.G. George Muthoot of Muthoot Finance

Fotocorp (From Outlook 01 October 2012)

Big gold Muthoot Finance clients

Sanjay Rawat

Laborers are silhouetted after sunset at a construction site of a new apartment building on the outskirts of New Delhi. In a surprise decision, the Reserve Bank cut the benchmark interest rate for first time in three years by 0.5 per cent to provide relief to borrowers and revive the sagging economic growth. Banks, led by the State Bank of India, immediately announced they would substantially cut the lending rates that would benefit auto, home and personal loan borrowers.

AP Photo/ Kevin Frayer, File

RBI Governor D Subbarao (C) along with other Governors pose for media before the announcement of RBI’s annual monetary policy, in Mumbai. After a gap of three years, D Subbarao today slashed short term lending rate by 0.50 per cent to 8 per cent, a move that will reduce the cost of home, auto and corporate loans.

PTI Photo/ Santosh Hirlekar

Police detaining BJP activists during their protest in demand of minimum support price for Farmers for their Produce and 90% subsidy on loans, in Hyderabad.

PTI Photo

“We are in a tight squeeze and don’t know how to repay the money. Some of us have sold the buffaloes to repay the loan.” Naresh Chand (left, foreground) Jeevana village, Muzaffarnagar Naresh Chand rues the day he took microcredit to buy buffaloes. In 2006, the Punjab National Bank first made credit available to his 10-member self-help group. Prompt repayments helped get Rs 2.90 lakh to buy cows and buffaloes. “We paid back Rs 1.29 lakh. We stopped when the government started a loan waiver, which we did not get. Now, the bank has served notice to repay Rs 5.51 lakh,” he says.

“Both banks and microfinance people want a shop address before they sanction a loan. How do I get that?” Kanu Das, Calcutta Kanu Das, 35, a garment hawker in Calcutta’s busy Gariahat market, doesn’t believe in microfinance schemes from nationalised banks or mfis. “These schemes are worthless. They want a shop address before sanctioning loans. How do I get that?” he asks. So this Durga Puja season, Kanu went to the local moneylender for the Rs 30,000 loan he needed for procuring stocks. Now he needs to pay Rs 800 a month. “There is no pressure to pay back every week, something mfis insist upon,” he says.

Sandipan Chatterjee

“Banks make you feel really small...the attitude is you will run off with the money and never pay back.” Ripan Sarkar, Siliguri When Sarkar thought of starting his artificial flowers kiosk in Siliguri, he approached banks for a loan, but found their eligibility criteria impossible to meet. “I had no proof of permanent residence,” says Sarkar, whose family migrated to Siliguri from Assam. So he joined a private loan scheme called Bandhan by depositing Rs 1,100 as security for Rs 10,000 borrowed with full repayment in 45 weeks. “You would end up paying about Rs 2,000 as interest, which is better than the documentation headache.”

Sandipan Chatterjee

“The constant hounding and abusive language are getting too much. I sometimes feel death alone will offer me respite from this hellish loan cycle.” Bouthu Swarnalatha, Warangal A farm labourer, Swarnalatha is one of many in Seethampet village of Warangal district who sometimes contemplate suicide. Hounded regularly for falling behind on repayments for the Rs 15,000 she had taken from an MFI, Swarnalatha says she can’t afford to repay the weekly instalment as her daily earnings are not even sufficient to meet her needs.

Illustration by Sandeep Adhwaryu