Mysuru: Microfinance harassment forces over 100 families to flee villages 

Team Udayavani, Jan 16, 2025, 9:22 AM IST

In a troubling development, over 100 families from villages in Nanjangud taluk of Mysuru district have reportedly abandoned their homes due to harassment by microfinance companies. This comes shortly after a similar incident in Chamarajanagar district’s Yelandur, where more than 80 families fled their village.

Families who defaulted on loans allege that microfinance agents have publicly humiliated them by installing boards in front of their homes, labeling them as defaulters. In some instances, agents are said to have locked houses and forcibly evicted residents, escalating the distress.

Companies like Gramashakti, Five Star, L&T, and Bandhan Microfinance have been accused of enticing people with easy loans and then resorting to high-pressure recovery tactics. Local leader Shiramalli Huchayya has demanded immediate government intervention to address the issue and ensure the safe return of the displaced families.

Nanjangud Tahsildar Shivakumar Kasnoor has acknowledged the issue, stating, “We were not aware of families leaving their villages due to unpaid loans, but complaints about microfinance harassment have come to our attention. A meeting with representatives of private microfinance firms will be convened soon, and borrowers will be given additional time to repay their loans.”

The incident has sparked widespread concern on social media and among local communities. Displaced families are seeking government support to rebuild their lives, while activists are calling for stricter regulation of microfinance practices to prevent further exploitation.