17 SKS Finance borrowers, who ended life were not defaulters

17 SKS Finance borrowers, who ended life were not defaulters

"Of the total list, 17 people have had loans with SKS. But they have not committed suicides because of defaults. I re-emphasise, in those suicides there were no defaults or loan arrears. There are other complicated issues (for suicides) on case-by-case basis. Even police have cleared that we are not involved in that," Vikram Akula, Executive Chairman, SKS Microfinance, told reporters here.

He was replying to a question on reports of growing suicides due to the alleged harassment by Micro Finance Institutions (MFIs) for loan collections.

As per the data available the interest rate charged by the companies range from 26-60 per cent.

Andhra Pradesh has been witnessing several suicides by rural people in the last 45 days following inability to repay loans taken from microfinance companies and the figure according to official sources, has touched 30.

The situation prompted the state government to come out with an ordinance today to control loan recovery methods and other issues of microfinance lenders.

To a query, Akula said if a borrower dies, the remaining loan amount is waived and whatever has been paid till then, will be returned to the family.

He said if the RBI or Finance Ministry asks SKS, the company is willing to reduce another two per cent in interest.
According to him the present rate is 26 per cent.