It may not be common knowledge but a source tells me that microcredit lending programs, including major INGOs, have used Jamindars and other local loan sharks that have been in the business for generations, because of their “experience” in lending activities. One cannot ignore the fact that there is a deep rooted disregard for these village lenders, and rightfully so. The vile practices of the past that forced people into perpetual debt and a life of servitude will not be washed away easily. This feeling amongst borrowers gives rise to mistrust of the lender. Moreover, the system becomes very fragile and a slight voice of decent could quickly escalate into a community backlash similar to the recent events in India (CLICK HERE).
Isn't it time to learn that same old practices do not yield different results?
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