MFIN dismisses reports about alleged harassment by microfinance firms

The Microfinance Industry Network (MFIN) on Thursday dismissed reports about alleged harassment by microfinance companies in the state, claiming that a small section of "ill-informed" individuals with the aid of unauthorised entities were indulging in "unscrupulous" rumourmongering.

Recently, various organisations also staged protests in different parts of the state condemning the atrocities and oppression carried out by microfinance companies and demanded action against them.  "The recent reports of protests against MFIs are from a small section of "ill-informed" individuals with the aid of unauthorised entities, indulging in unscrupulous rumourmongering," Rama Kamaraju, Head, State Initiatives, MFIN said in a press conference here.

The MFIN is a Self-Regulatory Organisation recognised by RBI and the Association of Karnataka Microfinance Institutions.

"We wish to assure you all that we follow a very well calibrated advisory approach and have our eye on the ball at all times," he added.

Kamaraju urged the media to carry out a thorough fact check of any issues being reported on the sector so that the MF ecosystem is shielded from any untoward rumours.

"Having said that, we are open to talk and engage on the right forum to address any genuine concerns with regard to the microfinance ecosystem and its operations," he added.

According to the police, on January 20, a 60-year-old woman in Ramanagara district near Bengaluru died by suicide after being allegedly harassed by loan recovery agents.

In another incident, a 50-year-old woman from the same district ended her life due to alleged harassment by a microfinance company after she was unable to repay the loan amount of Rs 1 lakh she availed through the company.