Karnataka Government Approves Ordinance to Curb Harassment by Microfinance Companies

By A Staff Reporter

Bengaluru, Karnataka | Karnataka Chief Minister Siddaramaiah on Tuesday confirmed that an ordinance aimed at preventing harassment of borrowers by microfinance companies has been signed by the Governor. The law, which will soon come into effect, seeks to protect individuals from coercive debt collection practices and ensure ethical lending operations in the state.

In a social media post, Siddaramaiah urged citizens not to make hasty financial decisions out of fear of harassment from microfinance institutions. "An ordinance designed to prevent harassment of borrowers by microfinance companies under the pretext of debt collection has received the Governor's signature. This law, which will come into effect soon, will protect people against illegal loan collection and harassment by microfinance institutions. Don't let anyone take any hasty decision out of fear of harassment from microfinance. Our government is with you," he tweeted.