Yellandur: Despite loan clearance certificate, woman alleges harassment by microfinance firm

Yellandur: Even after the Karnataka government brought in a new law to regulate microfinance institutions and prevent borrower harassment, complaints of misconduct continue to emerge.

Lakshmi Shivananja, a resident of Duggahatti in the taluk, has alleged mental harassment by a microfinance company despite repaying more than double the loan amount. According to her, she had borrowed Rs 80,000 from Spandana Sphoorty Financial Ltd.’s Chamarajanagar branch on November 26, 2022. Over time, she claims to have paid back Rs 1.59 lakh across various installments. Yet, the company insists she still owes Rs 10,224 and continues to pressure her.

“I have a clearance certificate. Even then, they’re saying my loan isn’t over,” Lakshmi said, accusing the company of deliberately misleading her and mentally harassing her despite fulfilling repayment obligations.