MYSURU: Hundreds of families have fled their homes in Chamarajanagar district owing to the alleged harassment by private microfinance companies for not repaying their loans.
Many villagers said agents of lenders allegedly harassed the defauters for not paying monthly installments and also not clearing their loans on time.
In some cases, children have discontinued their studies and joined their parents to work in farms and plantations in neighbouring districts and states, fearing the alleged harassment by the agents, they said.
Mohan, a student, has appealed to the government to allow him to sell one of kidneys to clear the loan taken by his father. The agents abused his mother in foul language whenever they visited their house, he alleged.
The agents also visited the houses of defaulters at night and allegedly harassed them in the presence of their children, the villagers said.
People from Heggawadipura alleged that the microfinance companies disbursed loans at 24% interest.
A few companies were run by some trusts. Companies from neighbouring Tamil Nadu also operated in the district. The companies lend money not only to individuals, but also to women’s self-help groups, they said.
Children of a few defaulters said that their parents sometimes spoke about committing suicide as they were unable to repay their loans.
Meanwhile, Deputy Commissioner Shilpa Nag has appealed to the defaulters not to leave their villages.
She said the defaulters may approach her or the assistant commissioner for help. They may also approach tahsildars or local panchayat officials.
Four teams have been formed to visit villages and submit a report.The district administration has plans to hold special panchayat meetings to educate people, she said.