Issue Date: Nov 30, 2010
Ega Mounika was born into debt, lived in debt and died with debts. The college-going 20-year-old of Warangal’s Karimabad village immolated herself on September 25; three days later, she died.
“My daughter wanted to release us from debt,” said her father Laxmi Narayan who sustained burn injuries trying to rescue her. He owns a paan shop and always had debts, which is why no bank found him worthy of a loan.
So five years ago, when a microfinance institution (MFI) approached her mother, a beedi roller, offering a loan of Rs 10,000, Mounika was quick to say yes. She bought a sewing machine with the money, started a tailoring business, dividing her time between studies and the new machine.
“Things were fine for two weeks,” said Narayan, “then we began to default.” Loan repayment is usually weekly in microfinance.