A tragic suicide in Bihar’s Muzaffarpur district has once again drawn attention to alleged harassment by microfinance loan recovery agents. Gudiya Devi, 35, a mother of three, died after consuming pesticide, with her husband alleging she was under severe pressure from recovery staff of multiple microfinance companies.
Family alleges harassment over loan repayments
Gudiya’s husband, Pintu Goswami, who works in construction and lives in Sheikhpura district, said his wife had taken loans from four different microfinance companies. According to him, the family was paying around ₹12,500 every month in instalments and had already repaid most of the borrowed amount, estimated at about ₹1.5 lakh.
On the day of her death, Gudiya reportedly called Pintu asking him to urgently send ₹2,500. Unable to arrange the money immediately, Pintu said he later learnt that recovery agents had visited their home. “They would come and harass her. Something must have happened that pushed her over the edge,” he alleged, adding that there were no domestic issues.
Pattern of distress-linked deaths
Gudiya’s death is not an isolated case. Earlier this month, a man and his three children died in Muzaffarpur in an apparent suicide pact, with reports suggesting pressure from microfinance lenders. Activists claim that over the past one-and-a-half years, around 20 suicides across districts such as Darbhanga, Saharsa, Begusarai, Patna, Saran and Munger have been linked to loan recovery stress, though there is no official confirmation of this figure.
Bihar tops microfinance borrowing
According to data from Sa-Dhan, Bihar has more than two crore microfinance loan accounts, the highest in the country, with outstanding loans totalling ₹57,712 crore. This translates to an average liability of about ₹28,500 per borrower, many of whom are women from economically vulnerable backgrounds.
Activists and state respond
Meena Tiwari of the All India Progressive Women’s Association said weak regulation allows lenders to exploit borrowers. “Women are lured with promises of self-employment, but the loan amounts are inadequate. When repayments begin, harassment follows,” she said.
The Bihar government has promised action. Deputy Chief Minister Samrat Choudhary and Director General of Police Vinay Kumar have warned that illegal loan recovery practices will not be tolerated, describing some operators as functioning like a “mafia”.