Hundreds of families in Chamarajanagar district have abandoned their homes, citing harassment by private microfinance companies over unpaid loans. Villagers allege agents harass defaulters through abusive language, nighttime visits, and intimidation.
In some cases, children have been forced to leave school to join their parents in labor, fearing harassment. Mohan, a student, made a desperate plea to sell a kidney to clear his father’s debt, claiming agents abused his mother.
Villagers reported exorbitant loan interest rates of 24%, with some companies linked to trusts or operating from Tamil Nadu. Women’s self-help groups have also been targeted. Distressed families report some members contemplating suicide due to mounting financial pressures.
Deputy Commissioner Shilpa Nag urged defaulters to stay and seek assistance from district officials, including tahsildars and panchayats. The administration has formed teams to investigate and plans to hold awareness meetings to educate villagers on resolving the crisis.
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