Posted on August 13, 2009 - by boris

According to Hasina Bano, loans can lead to public shame…

Hasina Bano, a silk-factory worker from Ramanagaram, says that, for her, the most difficult aspect of microfinance is that debts can become public knowledge in the community. So when she got in over her head with loans, she had two big problems: Difficulty repaying, and public shame.

Ms. Bano, 27 years old, makes about $8 a week working in a silk factory, and says she owes her microlender a weekly payment of $7.20. She has struggled to make the payments for years. Meantime, her groupmates are watching and waiting — because they can’t secure new loans until she has repaid her share.

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Source: http://online.wsj.com/article/SB125008232217325553.html