RAJSHAHI, Oct 1 (UNB): A section of non-government organisations (NGOs) and private moneylenders are doing lucrative 'dadon' business in the name of helping the poor people with micro-credit.

They are fleecing the poor across the country, including Rajshahi district, through realising over 35 per cent interest on small loans, three times higher than the rate fixed by the government.

Many a sufferer complained that the NGOs and the moneylenders disbursed high-interest loans among the poor people, thus doing money-spinning business instead of helping them to improve their condition.

Hundreds of poor people in Bagmara upazila of the district are burdened with NGO loans. They borrowed money from different NGOs and 'dadon' traders (money lenders) at high interest rates.

The borrowers hardly realise that they are paying so high interest because they repay the borrowed money in small amounts in weekly instalments.

The poor people face great difficulties in repaying the loans as they have to start repaying loans along with interest shortly after getting the loans. It is therefore hardly possible for such borrowers of micro-credit to improve their economic condition.

The poor borrowers, mostly with little education or downright illiterate, do not utilise the loans in profitable or productive activities as the NGOs do not provide them proper training in any income-generating trade.

Sometimes, they have to borrow money from an NGO to repay the loan instalment of another one - thus sinking far deeper in the labyrinth of debts.

"Employees of different NGOs and private moneylenders moving from house to house of the borrowers to collect instalments of loans is a common scenario in Bagmara upazila," says a report from the area.

Bagmara is a vast upazila with a substantial segment of its population being poor, who by turns used to fall in the orbits of 'sarbahara' leftists and Islamist JMB operatives.

Several borrowers from Ramrama village in the upazila said they just have to mention in the loan agreement the purpose of the borrowing. "But the NGOs do not bother for what purposes the money is being spent. Rather, they are busy collecting the instalments," said a borrower.

They said Mokbul and Jahura of the village fled to the capital having failed to repay the loans taken from an NGO.