Why are micro loans preferred in rural West Bengal

I met Susmita’s mother, Rekha in a weekly repayment meet. Known to a regular attendee, she was there to return her 22nd installment of the education loan she had taken for her daughter. Susmita is class 12 student studying in local town school.Lover of Bengali literature, she wants to become an engineer. Rekha told me how she has been sleeping only 4 hours a day to prepare for the ongoing exams.

“She wants to study B.Tech. Get herself a job in Kolkata. Me and my husband run a grocery store. By God’s grace, we could save enough to fund their school requirements. But now, private tuitions alone cost Rs.1000 per subject. We dont know how we will fund her for B.Tech. Luckily there are these loan facilities that keep us going in times of utmost urgency. The loan processing is fast. Weekly repayments make it affordable and these meets happen in the vicinity. So it is a sorted affair.”

With a lump sum amount of Rs. 15000, she enrolled herself in the best private tuitions in town. Her exams were going on then, but with track record like hers and witnessing her 4 hour sleep cycle, her mother was confident she would clear class 12 with good grades. To which Rekha added, “Me and my husband are already discussing ways to arrange money for the coming year. Feels good to know we can rely on a Milaap loan again. Just incase.”