Its members to stage dharna on February 23

The Karunadu Rakshana Vedike has alleged that some financial companies offering gold loans were charging exorbitant rates of interest.

The vedike alleged that a few were cheating people by announcing 1 per cent interest on gold loans, and charging 5 per cent at the time of loan settlement and release of jewellery. The vedike has decided to stage a dharna here on February 23 in protest against the malpractices of such companies.

K.T. Prakash, president of the vedike, told presspersons here on Monday that the companies, which were mushrooming across the State, were exploiting poor people, who were in urgent need of money. Some financiers were luring the people with attractive advertisements featuring film actors, and false claims of low rates of interest, he said.


Stating that a large number of such financial companies were not bound by the Reserve Bank of India guidelines, he claimed to have received several letters from people, who had allegedly lost huge quantities of gold after borrowing loans. Some companies were confiscating the jewellery for failure to pay interests for a couple of months, he quoted people as saying. He claimed that some had expressed their willingness to join the vedike in the protest.

Leaders of the vedike, Alur Shivakumar, H.K. Chidananadamurthy, L.B. Hanumanthappa and H.S. Saifulla, were present.

  • ‘Companies offering gold loans are mushrooming across the State'

  • ‘They announce 1 per cent interest on loans but charge 5 per cent in reality'