How the state is failing the poor as they fall prey to loan sharks

Poor access to finance lies at the root of the problem just as shylocks enjoy nexus with the people in power to fleece poor communities in rural areas, experts say.

About eight years ago, Hridayash Kurmi of Ratanganj, Susta Rural Municipality-5 in Nawalparasi took a loan of Rs100,000 from Sunil Kumar Gupta, a village moneylender, to go to Qatar for foreign employment. But he returned within eight months after failing to find the promised job. He was well aware of the fact that he had a loan of Rs100,000. What he did not know was the interest on the loan.