Microfinance loans with soaring interest rates have left the community in Batticaloa trapped in a cycle of debt, reports The Hindu.
In a piece entitled “Getting sucked into a quicksand of debt”, villagers in the Eastern town described how microfinance loans have left many trapped.
“First, it was the tsunami that destroyed our community,” said one villager. “Then came the war. Now, it’s microfinance.”
Another spoke of how he was planning on selling his kidney to repay microfinance loans. “They say I will get LKR 8-9 lakhs (about INR3.7 lakhs), but even that won’t be enough to fully repay our loan,” he said.