Mysuru: Amid rising complaints of harassment by Microfinance lending firms across Karnataka, T.V. Arunkumar, State President of Karnataka Rajya Raitha Sangha and Raitha Parva, has warned of a Statewide agitation if the government fails to curb these practices.

Speaking to reporters at Patrakarthara Bhavan, he said, “The entry of Microfinance firms was initially a boon for rural borrowers who struggled to secure loans. However, these firms began lending large sums without assessing borrowers’ repayment capacities, leading to widespread harassment.”

He further alleged that the firms not only charge exorbitant interest rates but also relentlessly harass borrowers over delayed installments. This has forced many women from villages such as Hullhalli, Rampura, Muddalli, and regions in Chamarajanagar district, Bengaluru Rural, Ranebennur’s Gudddabavihalli, Belagavi and other parts of the State, to flee their homes.

“The high-interest rates charged by these firms violate RBI guidelines, making their practices illegal. The Government must step in immediately to protect vulnerable citizens from such exploitation,” he said.