HRF worried over increasing loan interest rate

KOCHI: Expressing concern over further increase in interest rate of loans, the Human Rights Foundation (HRF) has accused the Central Government and the Reserve Bank of India of trying to throw the common man into a vicious cycle of debt.Under the Securitisation Act, if a person fails to pay the interest for more than three times, his/her property is liable for seizure. The HRF stated that many people, who had taken loan at a 7 per cent interest rate, were now paying up to 14 per cent interest and hence, might be unable to pay the interest at times. This scenario is leading to a situation where a lot of poor people will become homeless and some even driven to commit suicide, the HRF stated. To prevent this from happening again, the HRF is planning to send petitions to the Prime Minister, the Governor of the Reserve Bank of India, Chief Minister Oomen Chandy, the Supreme Court, and the Kerala High Court, asking to make interest rates reasonable and to avoid further increase in the prevalent interest rates.A decision in this regard was taken at the HRF district committee meeting held at Kochi on Saturday. District president T K Abdul Azeez presided over the meeting.