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Will amend law to rein in microfinance companies: Karnataka CM Siddaramaiah

Karnataka Chief Minister Siddaramaiah has announced the state's decision to amend existing money lending laws and introduce new legislation to protect genuine borrowers. This action follows public outrage against alleged harassment by micro-finance companies,
Karnataka Chief Minister Siddaramaiah has announced plans to amend the Karnataka Microfinance Act to better regulate microfinance institutions (MFIs) in the state. This decision comes in response to concerns over the high interest rates charged by MFIs, which have been criticized for exploiting borrowers. The amendment aims to protect borrowers from excessive interest rates and ensure that MFIs operate within a framework that promotes financial inclusion without leading to over-indebtedness. Siddaramaiah emphasized the need for a balanced approach where MFIs can continue to provide credit to the underprivileged while adhering to fair practices. This move is part of a broader initiative to safeguard the interests of the economically weaker sections of society who rely on microfinance for their financial needs.

Read the Full MSN Article at:
[ https://www.msn.com/en-in/news/other/will-amend-law-to-rein-in-microfinance-companies-karnataka-cm-siddaramaiah/ar-AA1xPVrJ ]