Daijiworld Media Network - Mangaluru (RJP)

Mangaluru, Aug 4: Deputy commissioner A B Ibrahim has instructed the deputy registrar of cooperative societies in the district to deregister the finance companies that operate without office within a week.

He was speaking in the meeting held for the chiefs of commercial banks, rural banks and other non-banking financial institutions at the DC office auditorium.

The deputy commissioner said that interest charge exceeding 16 % cannot be charged on any loan. If anybody knows about any persons or finance companies charging more than 16 % interest, one can complain about this at the nearest police station.

District superintendent of police Dr Sharanappa said in the meeting that “The police department has already begun the process of instilling courage in farmers to fight the financiers who charge exorbitant interest rates on loans. Meetings in urban and rural levels will be held to educate the farmers in this regard. Strict action will be taken against the financiers who charge more and unreasonable interest.”

B K Salim the deputy registrar of co operative societies informed in the meting that there are 320 finance companies operating in the district and unregistered companies are being identified.

There are 1.2 lac farmers in the district out of which 90,000 farmers avail loans only from co operative societies. Every farmer who has the proper set of records gets loan. Others who go to money lenders end up paying more interest. On the wake of prevalent farmer suicides in the state, the government has initiated to act tough against money lenders.