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from TradeBriefs FMCG Daily Newsletter

Sree Vijaykumar

From the Editor's Desk
This in-depth piece by Scroll.in explores the issue of exploding debt in rural Tamil Nadu. Venkatsubramanian of the French Institute spoke about an old woman he had met. "She had no assets," he said. "And Rs 300,000 in loans. And now, she wanted to marry her daughter off at Rs 5 lakh. And she said she will not have any problem. She will get money two weeks before the wedding." But if that is the case, aren't lenders baulking? Evidently not. Lending to someone at 5% a month translates to an annual return of 60%. The lenders keep coming. All this is uncomfortably similar to the 2010 Microfinance crisis in Andhra Pradesh.

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