Paying the price
▶ Loan sharks target Indian sex workers hit by pandemic
When Indian sex worker Baji lagged on her repayments to a loan shark during lockdown, her house was ransacked and her only belongings of any value taken – a new low in a terrible year.
As COVID- 19 hit their incomes, hundreds of penniless sex workers in southern Andhra Pradesh state turned to unscrupulous moneylenders to survive the pandemic – most of them lacking documentation necessary to qualify for formal bank credit, campaigners said.
“I had nothing left in my kitchen the day the lender approached me with a loan offer. He had a polite and assuring manner and said there was no urgency to repay the money,” Baji, 26, who goes by this alias, said by phone from Krishna district.
“But he returned week after week. I repaid 1,200 rupees
( about $ 16.50) from the loan itself, but when I stopped they ransacked my home and took all my utensils,” the mother- of- two told Reuters. “It was traumatic.”
Before COVID- 19 swept through India, Baji earned up to 1,000 rupees a day, enough to feed, clothe and shelter her children, but 2020’ s lockdown pushed her and other sex workers to the brink.
There are approximately 800,000 sex workers across India according to government figures but campaigners estimate much higher numbers.
More than 100,000 are registered in Andhra Pradesh alone, figures from campaigners show.
Reflecting concern about the plight of India’s informal workers, the nation’s human rights panel asked state governments in October to formally recognize sex workers, a step that would have granted them benefits from a $ 23 billion state aid fund.
However, after initial approval, the order was reversed after detractors said such a move would be illegal and risked legitimizing sex trafficking.
While sex workers did receive some food aid, their lack of income left many open to abuse by loan sharks, especially in Andhra Pradesh where authorities have been trying to rein in widespread usury for years.
‘ Call money’
Authorities in Andhra Pradesh, a state once known as the center of India’s microfinance sector, have attempted regulating usury – widely known as the “call money” racket for the ease of borrowing over the phone.
A decade ago, the state government curbed microfinance activities after a spate of suicides by borrowers, and in 2015 it banned moneylenders from operating without a license after arresting about 200 people due to harassment allegations.
But industry analysts said shylocks – who charge high interest rates and resort to extreme means to collect debts – are partly the result of inadequate legitimate credit sources in the state.
A collective representing 6,000 sex workers in the state said more than three- quarters of its members were in debt. Many live under the constant threat of abuse from moneylenders.
“They’re drawn to these lenders as they aren’t required to give any collateral or proof of identification. They start with small amounts that the women can repay. The women feel confident [ and] borrow more,” Devi said. “That’s how they get trapped.” “These are unsecured loans. There is nobody else to borrow money from,” said Harsh Shrivastava, former head of Microfinance Institutions Network, a self- regulatory organization for the microfinance sector.
Lenders routinely deduct 10 to 20 percent from the loan principal even before handing over the money, sex workers and police officials said.
But because they give loans without requiring collateral or documentation, they are like “god,” said Ram Mohan, cofounder of anti- trafficking charity HELP.
“Women borrow from one to pay another. They are trapped in this debt cycle,” Ram Mohan said.
Officials at the state’s criminal investigation department ( CID) said complaints against moneylenders were common, though no specific complaints from sex workers had been received.
Many of those who fall behind on their debts are too scared to go to the police if the moneylenders become abusive or violent, campaigners said.
“Institutional lending is difficult to approach and this is informal money lending and very flexible, despite outrageous interest rates,” said P. V. Sunil Kumar, additional directorgeneral at the CID.
Baji entered sex work at the age of 17 when she was a single parent, having recently been deserted by her abusive husband, but she had some optimism about the future until her debts spiraled at the height of the lockdown.
After the burglary, she was forced to work at a brick kiln, earning a paltry 400 rupees for a 12- hour day.
That too was halved after a mound of bricks fell on her leg, requiring surgery costing a staggering 20,000 rupees.
Her employer lent her the money but deducts repayments from her wages.
“We had problems in sex work, but I was earning and was able to survive and there was hope. I have nothing to look forward to now,” she said.
Happy birthday:
There are always those who like to prey on the unwary so make sure you pay close attention to your surroundings today. You may run into some trouble when it comes to matters of the heart. Your lucky numbers: 2, 4, 6, 11, 17.
Pisces ( Feb 19 - Mar 20)
T Today will be a great day to change things up. Go ahead and throw your daily routine out the window and see where your instincts take you. Lady Luck will be at your side when it comes to money. ✭✭✭✭
Aries ( Mar 21 - Apr 19)
To Today will turn out to be an amazing day for you Aries, but too much of a good thing can be bad for you. Don’t get to too carried away or things may start to spiral out of control. ✭✭✭✭
Taurus ( Apr 20 - May 20)
Your Yo recent lack of motivation may be a sign that you need to take a break. Take some extra time out of today to just relax re and just let your mind wander for a while. Luck will be with you when it comes to money. ✭✭✭✭
Gemini ( May 21 - Jun 20)
A simple argument may lead to a full- on fight if you do not choose your words carefully. If things start to get heated, don’t hesitate to call for a time- out. ✭✭✭
Cancer ( Jun 21 - Jul 22)
Y You will be able to give your creativity a boost by taking part in artistic activities. This is a good time to head to the art museum. Lady Luck will be at your side when it comes to your love life. ✭✭✭✭
Leo ( Jul 23 - Aug 22)
Fo Focus on having some fun today. Getting together with your friends is sure to lead to opportunities for interesti ing social interactions. Travel is in the cards for you and your family. ✭✭✭✭
Virgo ( Aug 23 - Sep 22)
T Those you work with may not be happy with recent changes that have taken place at the office. Do not waste time complaining, your focus should be on adapting to these new conditions. ✭✭✭
Libra ( Sep 23 - Oct 22)
The T last person you expect to stand by you actually has the potentiation become an important ally. Open your mind and try to look at this person in a new light. You will be able to greatly contribute to someone else’s success. ✭✭✭✭
Scorpio ( Oct 23 - Nov 21)
If you want something done right, you will have to do it yourself. The more you rely on others the higher your chances that things will fall to pieces. ✭✭✭
Sagittarius ( Nov 22 - Dec 21)
If your intuition is telling you the opposite of what your research is saying, it may be time to bring in a fresh pair of eyes. A rumor may cause you to start making big plans for the future, but don’t jump the gun just yet. ✭✭✭
Capricorn ( Dec 22 - Jan 19)
A storm is brewing on the horizon. Take care with how you spend your money over the next few weeks and you will be able to weather this storm. ✭✭✭
Aquarius ( Jan 20 - Feb 18)
Today should be about focusing on the future. Think about where you want to be this time next year. Love and romance are looking up. ✭ ✭ ✭