Microfinance firm evicts family over loan default, seizes house despite pleas for extension

Devanahalli,

In a distressing incident that has sparked outrage in the local community, SBFC Finance Private Limited staff forcibly evicted a family from their home in Vijayapura town's 17th ward on Thursday for defaulting on a housing loan installment, and seized the property.

C. Muniraju, the homeowner, along with his ailing mother, wife, and two daughters, has now taken shelter at a relative's house after being thrown out of their residence. Muniraju had availed a home loan of ₹21 lakh from SBFC Finance Private Limited in 2021, and had reportedly paid up to ₹18 lakh. However, due to a health crisis, he failed to pay five months' installments amounting to approximately ₹2.11 lakh.

According to the family, company representatives arrived with a court order and, without any prior warning or leniency, evicted them and sealed the house by locking the doors.

“I have never missed an instalment until recently. I have been undergoing treatment for a heart condition for over a year. Due to medical expenses, I couldn’t pay the last five months. I requested them to give me just a little more time, but they wouldn’t listen,” Muniraju lamented.

He added that despite paying almost the entire principal amount, the finance company abruptly increased the interest rate from the initially agreed 13% to 19%, further worsening the financial strain on the family.