Bagalkot officials warn private moneylenders against harassment
Bagalkot officials warn lenders against illegal loan recovery tactics, assuring legal action for harassment of borrowers
![Bagalkot officials warn private moneylenders against harassment Bagalkot officials warn private moneylenders against harassment](https://www.deccanchronicle.com/h-upload/2025/01/29/1886064-29-01-mgl-bagalkot.webp)
Bagalkot: The Bagalkot district administration has issued a strict warning to microfinance institutions, financial firms, and private moneylenders against using illegal methods for loan recovery. Deputy Commissioner Janaki K.M. stated that violations of recovery norms would lead to immediate legal action, even in the absence of a formal complaint.
At a meeting with microfinance representatives on Wednesday, she emphasized that borrowers must not be harassed. "Financial firms must operate within legal boundaries. If found using coercive tactics, cases will be registered against them suo motu," she cautioned.
Borrowers facing harassment can report the issue to the Superintendent of Police’s office at 9480803900, she added.
The DC stressed that all financial institutions must adhere to RBI regulations when issuing loans and collecting repayments. She warned against over-lending beyond a borrower's capacity and assured that any firm exerting undue pressure on defaulters would be held accountable.
Superintendent of Police Amarnath Reddy said that loan recovery must follow legal procedures.
He also confirmed that a case had already been registered over illegal recovery tactics in the district.
"Even without complaints, the police will take suo motu action against violations," he added.