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Microfinance loan providers in Sierra Leone accused of ‘payday loan’ interest rates

Microfinance loan providers in Sierra Leone accused of ‘payday loan’ interest rates

Borrowers have actually accused NGOs of billing unfairly high interest, demanding rapid payback, and reporting debts to your authorities

The majority that is vast of taking right out microfinance loans in Sierra Leone are females. Photograph: Kate Holt for The Guardian

Last modified on Thu 15 Oct 2020 14.19 BST

The world’s biggest NGO happens to be obligated to conduct an interior article on a money-lending scheme it operates for the bad in Sierra Leone after some borrowers amassed significant debts and had been reported to police if they couldn’t repay loans.

A Guardian investigation in to a microfinance programme run by Brac discovered that the NGO’s staff had been neglecting to fully explain the conditions of this loan to borrowers, or make sure they might pay the high rates of interest related to such loans.

Brac, an NGO providing you with economic solutions for individuals surviving in poverty, has 5.6 million borrowers globally, very nearly 90percent of who are females. Continue reading Microfinance loan providers in Sierra Leone accused of ‘payday loan’ interest rates