In anticipation of the upcoming Bihar assembly elections, all political parties are focusing on the women’s vote. Recognizing this, the government is striving to economically empower women in the state. Before the elections, the state government distributed ₹10,000 each to numerous women associated with the Jeevika project, aiming to strengthen their financial standing. This move is considered a strategic initiative by the current administration. However, a significant number of women linked to the Jeevika project across Bihar are experiencing distress, fearing that the financial aid they are receiving will be seized by loan recovery agents who are already targeting them.
Despite the government’s stance that this decision is welfare-oriented, the reality on the ground is different. In the village of Kinaru, Muzaffarpur district, women involved in Jeevika are burdened by debt. Many women in the village are struggling to manage loan interest payments. They are now concerned that the ₹10,000 from the government will be taken by bank recovery agents. These agents have reportedly indicated that the government’s aid must be used to settle outstanding loans.
Many women are facing similar challenges. Muneja Khatoon states that women borrow from neighbors to repay Jeevika loans. Recovery agents from microfinance companies often persistently pressure them at their doorsteps, leading them to borrow from neighbors to satisfy the agents. Savita Devi explains that she took out loans when her husband fell ill and then took another from a microfinance company, resulting in a double burden of debt on her family. She faces constant pressure from recovery agents.
This situation is not isolated to Kinaru village; it is prevalent in surrounding areas. Rekha Devi points out that the loan amount received is often less than what was applied for. Sometimes, the debt amount exceeds the initial proposal. Some families, unable to repay their debts, have left the village, their homes now locked. Some women reported that these debts have led to tragic consequences, with some choosing suicide as a result of the financial strain.
The government claims to have spent ₹40,000 crore on 1.3 crore women connected to the Jeevika project, while microfinance companies have distributed approximately ₹50,000 crore in loans. The crucial question remains: How will the government address the challenges faced by women, who are considered a key voter base?
