Karnataka's Fight Against Predatory Microfinance Companies

Karnataka Home Minister G Parameshwara announced ongoing discussions to finalize a draft bill aimed at protecting borrowers from aggressive practices by microfinance companies. The bill requires careful legal consideration to avoid judicial challenges. The Chief Minister has directed an integration of money lending laws, prompted by borrower harassment incidents.

The Karnataka government is taking bold steps to tackle the exploitative behavior of microfinance companies, Home Minister G Parameshwara revealed on Sunday. He stated that intensive discussions are focused on crafting a bill that not only safeguards borrowers but also withstands potential legal challenges.

Addressing the media, Parameshwara emphasized the necessity of precise amendments to the proposed legislation, ensuring it falls safely within legal frameworks. Chief Minister Siddaramaiah has instructed officials to weave existing money lending laws into the bill.

This action comes in response to disturbing reports of borrower harassment, including suicides and property confiscations. To combat these issues, the CM has urged the swift preparation of the draft, aiming for its rapid approval by the Governor.

(With inputs from agencies.)