Series: Insights into Bengaluru

The first part of the series LOANS FOR URBAN POOR IN BENGALURU explained how the urban poor living in the slums of Bengaluru get trapped in the circle of borrowing, paying interest and re-borrowing. In this part, the author explores the reason behind the same—why banks do not help the poor—how complicated the process is. Sunil, a slum dweller in Swatantrapalya, wants to buy an auto. He needs a loan badly. Not keen on lending money from local moneylenders for extra interest, he wants to secure a bank loan. However, he doesn’t have any collateral security to offer to the…

Alamelu works in one of the flats in a nearby apartment complex. After returning to her home in Swatantrapalya, she prepares incense sticks. Pics: Shree D N Sitting on the floor in her two-room house in Ragigudda EWS quarters, Rajeshwari N, a domestic worker and mother of two, says that she hopes to leave the locality within next two-three years. She has borrowed over Rs 2 lakh to pay the Slum Board for house allotment and to pay off her relatives who wanted to stake claim to the house. Rajeshwari has been living in the area–which was Ragigudda slum earlier–for…