DAVANAGERE: An elderly woman and her family were allegedly forced out of their home by a private microfinance company over loan defaults in Marenahalli village of Jagalur taluk, Davanagere district leaving them without shelter for the past 15 days.
Gowramma, a daily-wage worker, and her family have been staying outside their locked house after a seizure notice was reportedly pasted on the premises. Gowramma and her elderly mother have been spending their days in front of the house, with limited access to basic necessities.
Gowramma alleged that she had initially refused to take a loan but was persuaded by the company, who promised lower interest rates and said the money would help her children’s business. She alleged that the staff offered loans worth Rs 6.80 lakh, allegedly to earn commissions.
According to her, she paid the instalments for three years and three months without default. To meet the repayments, she even sent her two children to work in other people’s homes while continuing to work as a daily-wage labourer herself.
However, her deteriorating health over the past few months left her unable to work, affecting the family’s ability to repay the loan. Despite seeking more time from the finance company, citing her illness and loss of income, the company allegedly proceeded with legal action and took possession of the house following a court order.
Loan recovery from farmers must be humane: Prabha
Davangere MP Dr Prabha Mallikarjun said on Saturday that farmers were the backbone of the economy and cooperative institutions had a responsibility to support them during periods of agricultural distress. Cooperative institutions must adopt a humane approach to loan recovery from avoid putting undue pressure, she said.