Self Help Groups become Recovery Agents of Banks
One fine morning all the members of Agrogami Women Self Help Group of Ladhurka Gram Panchayat under Hura Block of Purulia had gathered in the house of Champa Chatterjee, the Treasurer of the group. All the members have a single claim – Champa’s husband must have to meet with the Bank Manager.
He shall have to explain why he is not repaying the loan he had taken from the Bank. He shall not be allowed to flee away from the Bankers anymore. Because, unless and until he meets with the Bank Manager and explains his reasons of default, the Bank shall not open the Cash Credit Account of the Agrogami Women Self Help Group and as a consequence, the members shall not be able to access credit from the Bank for initiating their own Income Generating Activities.
Under the Women Self Help Group Program supported by NABARD, the Savings Bank Account of the Agrogami Women Self Help Group had been opened on March 15, 2013 at the Ladhurka Branch of Bangiya Grameen Bikash Bank. In September, 2013, the group had duly been graded by the Bank and found eligible for securing Cash Credit support. While opening the Cash Credit Account, it had been found that the husband of the Treasurer of the group had not repaid a loan and the amount still unpaid is more than rupees three lakhs. The Bank had sent several reminders but the defaulter have never bothered even to contact with the Bank Officials. Almost similar were the cases of two other Women Self Help Groups, viz., Beerangana and Damayanti under the same Bank Branch whose Savings Bank Accounts were opened on September 11 and 3 respectively. It had been observed that a small amount is still remains unpaid by the husband of a member of Beerangana Self Help Group and amount defaulted by the husband of the Treasurer of Damayanti Self Help Group is Rs. 2,62,000/-. A local school teacher was the guarantor of the second loan and as a consequence of default, even his salary had been withheld!
Rina Banerjee, facilitator of SPADE at Ladhurka was explaining “… with the other members of these Self Help Groups, we have visited the houses of the three defaulters of Bank. Initially, there were conflicts. They said that these were their personal affairs and we should not interfere in these. We explained that non-repayment of Bank loans is a broad social issue – and every conscious citizen should raise her/his voice against this unscrupulous practice as this may affect the entire banking system of our country. Moreover, we are with you. The Bank Manager shall never hand you over to the police or hold you to keep tied. Bank Officials are very much cooperative and sympathetic to their clients. You just have to confess that the condition of your business is not stable and as such you need some more time to start repaying the debt. You must have to meet with the Bank Manager. Otherwise, about 30 women Self Help Group members shall not be able to access credit from the Bank.”
The message of defaulting Bank Loans and subsequent visit of the local women Self Help Group members gradually spread from house to house throughout the village. The issue becomes a domestic one involving both – the husband and the Developed by Anubrata Datta, Coordinator, Resource Center, SPADE wife. Members of Self Help Groups started meeting and reminding the defaulters even at the shops and market-places. Sometimes they wait at the corner of the roads to meet and remind the defaulters. A tremendous social pressure had been created over the defaulters with active involvement of the Bank Officials and ultimately, the three defaulter families had to come to terms with the Bank. The Field Officer of Ladhurka Branch of BGVB, Sri Probhat Kumar Sen, in presence of the Self Help Group members, mediated the dispute and settled that the husband of the Treasurer of Agrogami Women Self Help Group shall get some more time to initiate repayment of his debts as his business is not running well. The husband of the Treasurer of Damayanti Women Self Help Group repaid the first installment of Rs. 4000/-. The husband of the member of Beerangana Women Self Help Group repaid the full amount of his debt!
Ladhurka, Hura
March 14, 2014