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Karnataka: Microfinance Agents Continue Harassing Borrowers

Belagavi: Cases of alleged harassment by microfinance agents continue to emerge from different parts of the state, highlighting the plight of borrowers.

In a tragic incident on Thursday, a woman in Kakati village, Belagavi, reportedly died by suicide after being harassed by agents over loan repayments. Similar instances of harassment have also been reported in other parts of the district and outside.

In Tarihala village of Belagavi district, the house of Ganapati Ramachandra Lohar was allegedly seized by microfinance agents after he failed to repay a loan of Rs 5 lakh. Although Lohar had been repaying the loan for three years, financial difficulties stemming from his daughter’s delivery and his mother’s health issues left him unable to pay installments for the last six months. The agents reportedly evicted the entire family, including the newborn and the mother, from their house.

In another incident in Kapagal village of Raichur district, a man named Sharana Basava consumed poison and ended his life, allegedly due to harassment by microfinance agents. Basava had borrowed Rs 40,000 but faced insults and humiliation from the agents over delayed repayments. Unable to bear the harassment, he reportedly took the drastic step on January 17.

In the aftermath of her husband’s death, Basava’s wife, Parvathi, has written to Karnataka’s Home Minister seeking justice and has even sent her mangalsutra along with the letter.

Speaking to reporters, Belagavi Deputy Commissioner Mohammad Roshan assured strict action against middlemen.

“The district administration has come to know about the harassment by middlemen. I have instructed the Superintendent of Police and the Commissioner of Police to take stern measures to prevent such incidents. We have already conducted a meeting on this matter. Over the past 10-15 years, microfinance institutions have provided loans to the poor without issues. However, intelligence reports suggest that problems are now being caused by middlemen,” he said.

( Source : Deccan Chronicle )
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