A nonofficial survey conducted in Dhenkanal district has revealed that all most all the Self-Help Groups (SHGs) operating in the district are engaged in money-lending business.
“Out of total of 2,050 SHGs, over 2,000 are doing money lending business after taking loans from commercial banks instead of preparing Badi, Papad, Dhupakathi (incense stick) and Jhadu (broom),” said the report.
They have been doing this business as they are getting more money by way of interest. They are taking loans from banks at lower interest rates and lending money to needy people at much higher interest rates, added the report.
Even they do not hesitate to harass borrowers when they fail to repay the installments in time. Entire members of concerned SHG sit at the defaulter borrower’s door to collect the money.
The survey report too said that in many cases SHG members distribute bank loan amount among themselves to meet their personal requirements. Interestingly, they purchase Badi and Papad from outside to show them to inspecting bank officers and even to put in stalls in exhibitions.
According to official sources, 208 SHGs are operating in the Hindol area, 291 SHGs in Kamakshanagar, 231 SHGs in Odapada, 213 SHGs in Parjang, 485 SHGs in Sadar block and 210 SHGs are working in the Kankadahad block area.