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Man dies by suicide due to ‘harassment’ by money lenders
The farmer had borrowed ₹10 lakh from multiple finance companies over the years to fund his wife’s cancer treatment
With the state government working to bring an ordinance to curb the number of deaths by suicide over coercive loan recovery tactics employed by microfinance institutions (MFIs) and unlicensed money lenders, one more death and two alleged suicide attempts were reported in the state alleging harassment by the firms.
The Karnataka Microfinance (Prevention of Coercive Actions) Ordinance, 2025, which has been revised multiple times to ensure it withstands legal scrutiny, was sent to chief minister Siddaramaiah on Sunday for approval after which it will be forwarded to governor Thaawar Chand Gehlot for final clearance.
In Belagavi district, a 66-year-old farmer in Raibag taluk was found dead at his residence on Tuesday. Belagavi superintendent of police (SP) Bhimashankar Guled said: “The farmer consumed poison allegedly due to relentless pressure from loan recovery agents. He was found dead in his house on Tuesday morning.”
The farmer had borrowed ₹10 lakh from multiple finance companies over the years to fund his wife’s cancer treatment. Struggling with poor returns from his small agricultural land, he was unable to repay the mounting debt. His family told police that recovery agents had visited their home the previous day, verbally abusing him and persistently calling him for payments. Harugeri police have registered a case based on the family’s complaint, listing the names of the financial institutions involved.
Meanwhile, two separate suicide attempts were reported in Haveri district on Tuesday. A 47-year-old farmer allegedly consumed poison and after giving the poison to 10-year-old son and 8-year-old daughter. “After attending the three in the emergency section of Haveri district government hospital, they were shifted to KIMS at Hubballi for further treatment,” Haveri SP Anshukumar said.
He said the farmer had taken a loan of ₹3 lakh from a finance company. “Continuous harassment by recovery agents, who frequently visited his home and shouted at him, led to disputes with his wife, eventually driving him to take this step. His wife was at home when the incident took place.”
In another case from Haveri, a 32-year-old areca nut trader attempted suicide by consuming poison. He had purchased areca nuts worth ₹30 lakh on credit for an acquaintance. When he was unable to repay, the creditor converted the amount into a loan and deployed recovery agents to pressure him. “Unable to tolerate the regular harassment from the loan recovery agents, he attempted to end his life,” Anshukumar said, adding that “legal action would be initiated against the finance company and the loan recovery staff.”
In Chikkaballapura district, two people died by suicide due to financial strain. A 58-year-old former gram panchayat member was found dead in his field on Monday. His wife informed police that he had borrowed ₹3.5 lakh from various microfinance companies. “Unable to keep up with repayments due to health issues, he had pledged his auto-rickshaw as collateral. On the day of his death, he told his family he was going to arrange another loan but never returned,” police quoted the wife as saying.
Chikkaballapura SP Kushal Choukse confirmed that no harassment complaint was filed by the families in the cases. “The family members did not file any harassment complaint against microfinance companies,” he told HT. “We have registered a case of unnatural death and launched an investigation.”
