Borrowers have actually accused NGOs of asking unfairly high interest, demanding quick payback, and reporting debts towards the authorities
The great majority of individuals taking out fully microfinance loans in Sierra Leone are females. Photograph: Kate Holt for The Guardian
The great majority of individuals taking out fully microfinance loans in Sierra Leone are ladies. Photograph: Kate Holt for The Guardian
Final modified on Thu 15 Oct 2020 14.19 BST
The worldвЂ™s biggest NGO is forced to conduct an inside writeup on a money-lending scheme it operates when it comes to bad in Sierra Leone after some borrowers amassed significant debts and had been reported to police once they couldnвЂ™t repay loans.
A Guardian research in to a microfinance programme run by Brac discovered that the NGOвЂ™s staff had been neglecting to fully give an explanation for conditions for the loan to borrowers, or guarantee they are able to pay the interest that is high connected with such loans.
Brac, an NGO providing you with economic solutions for individuals located in poverty, has 5.6 million borrowers globally, very nearly 90percent of who are females.
At the time of might 2019, Brac Sierra Leone possessed a $5m (ВЈ3.9m) profile and 46,500 borrowers.
Dougherty said: вЂњWe don’t reveal investigation that is internal for outside research purposes. We now have staff training, monitoring and audit mechanisms set up throughout our operations to minimise the possibility of such incidents. Continue reading