Microcredit,
hailed as a saviour for millions, aims to break the cycle of poverty by
stimulating income-generating activities through providing
collateral-free loans.
But its repayment structure and the apparent inability of microfinance institutions to determine whether borrowers have multiple loans with other institutions rarely come under scrutiny.
Consequently, it can create a vicious cycle in which borrowers borrow money from other NGOs to repay existing loans, leaving many unable to repay and some to take extreme measures such as selling organs to make repayments
Source and full story: BBC News, 28 October 2013
But its repayment structure and the apparent inability of microfinance institutions to determine whether borrowers have multiple loans with other institutions rarely come under scrutiny.
Consequently, it can create a vicious cycle in which borrowers borrow money from other NGOs to repay existing loans, leaving many unable to repay and some to take extreme measures such as selling organs to make repayments
Professor Monir Moniruzzaman from the
Department of Anthropology at Michigan State University has been
researching the organ trade in Bangladesh for 12 years and says some
people feel they are left with no choice but to sell a body part.
"A lot of people's debt from NGOs has spiralled out of control.
Because they cannot repay the loans, there is only one way for people to
get out and that is to sell their kidney," he says.Source and full story: BBC News, 28 October 2013
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