While struggling to repair damages caused by the recent floods, destitute people in Kurigram are again tangled in the vicious cycle of loans as the NGO representatives are regularly collecting installments from them violating an order by the Microcredit Regulatory Authority (MRA).
The microcredit regulator issued a circular on September 8 directing heads of all NGOs to refrain from collecting instalments from credit holders in 17 flood-affected districts for the next two months. It also ordered them to facilitate the flood victims by allowing them to withdraw 100% of their savings.
Although Kurigram was one of the 17 districts listed by the MRA, the NGO officials have been found collecting instalments regularly in different villages under Ghogadaha, Paanchgachhi and Jatrapur unions in the district.
Locals claimed that a number of NGOs including Grameen Bank, Association for Social Advancement (ASA), RDRS, Social Development Foundation (SDF), Society for Social Service (SSS) and Uddipon, regularly collected instalments from the people who had been stuck in flood for the last three weeks.
The victims said now they had to take up more loans on interest to repay the instalments.
According to the members’ register books of the NGO offices in the unions, the flood victims had to pay around Tk300-Tk1,500 every week.
Sokhina, a credit holder of the RDRS in Boltipara village of Jatrapur union said: “When I was stuck in flood they collected instalments from me. On one hand I do not have money to rebuild my home, how do I pay instalments in this situation?”
Hossain Ali, another credit holder and a day labourer by profession, said: “Now that the flood waters have receded no one is providing work. If I am not able to earn, how do I repay instalments? The NGO people do not try to understand our situation.”
Similar complaints came from a number of families who earlier had taken loans from Grameen Bank, the ASA, the SSS or the RDRS and have lost their homesteads in recent flood.
During a visit, the Dhaka Tribune found similar scenarios in flood-affected villages under Ghogadaha union.
The residents claimed that almost everyday the NGO representatives came between 8am and 11am to collect instalments.
Biljon, Batina and Hejabjaan Bibi of Sonalikuthi village alleged that the NGO representatives intimidate them if they talked about their inability to pay instalments.
Mukul, Saleha, and Khadija of Kadamtali village under Paanchgachhi union said their homes were badly damaged during the flood. They had built the houses by taking up loans.
“My husband is sick so he cannot find any work. My savings are lost in flood water. I do not have money for food but still I have to repay instalments,” said Khadiha who took loan from Uddipon NGO in Kadamtoli village.
Grameen Bank’s Paanchgachhi Branch Manager Samiul Haque said: “As we are not an NGO and work under the Bangladesh Bank, the MRA directive is not applicable to us. So we did not stop collecting instalments.”
A similar claim was made by SDF District Manager Abul Hossain. “Government did not direct us to stop collecting loans. Our organisation collects small instalments through communities,” he said.
When asked about the MRA circular, RDRS Jatrapur Branch Manager Rashiduzzaman said he had heard of it.
“Maybe the instalments are being collected without my knowledge. I will look into the matter,” he said.
Regarding the MRA directive, Deputy Director of Kurigram Social Service Directorate Momtajul Islam said he did not receive any such letter.
Kurigram Deputy Commissioner ABM Azad told the Dhaka Tribune that no effective step could be taken until a formal directive came from the government or the NGO Affairs Bureau.