Microfinance Crisis in Karnataka state
Karnataka is currently grappling with a significant microfinance crisis, marked by widespread reports of harassment and exploitation by microfinance institutions (MFIs), particularly targeting vulnerable populations. These institutions have been accused of employing aggressive recovery tactics, including coercion and intimidation, leading to severe consequences such as mass migrations and suicides among affected communities. In districts like Kodagu, Haveri, and Chamarajanagar, numerous families have abandoned their homes to escape relentless harassment from MFI agents. These agents often charge exorbitant interest rates and resort to extreme measures to recover loans, exacerbating the financial and emotional distress of borrowers. The crisis has prompted public outcry and demands for government intervention. In Haveri district, women have initiated the 'Save Mangalya Sara' campaign, sending mangalsutras to Chief Minister Siddaramaiah to highlight their plight and seek immedi...