Several Bengaluru schools have raised allegations of harassment by an NBFC (Non-Banking Financial Company), for non-payment of loans as they have been affected by the pandemic.
While two schools have come forward with allegations, they say that multiple schools, especially in Devanahalli and Anekal taluks, have been suffering from continuous harassment from Bengaluru-based NBFC Varthana Finance, a school loan provider, also known as Thirumeni Finance.
Principal of SK Public School, Ajjappa said, "There are several schools like ours, that have taken loans before the pandemic, but due to the lockdowns, classes have moved online and there has been a drop in student enrollment. This has led to a fall in the school fees collection. Due to this, we have been unable to keep up the monthly payments." He added that many schools in the taluks had been appealing for some relief against the loan provider.
Another school, part of St Mary's Educational Society, had written a letter to the Karnataka Associated Management of Schools (KAMS) on the harassment faced by them.
Following the non-payment of loans, the NBFC attempted to auction the mortgaged land, but it failed to attract buyers. The schools had approached NBFC multiple times with potential buyers to settle the loan amount, while waiving off the interest built up in the last two years. The interest build-up had significantly increased the loan amount than the originally sanctioned amount.
Secretary of St Mary's Educational Society Mathal T Y said, "It is difficult for the school and my family as the company has threatened of hiring goons to forcibly shut our schools. We aren't able to focus on the school's development and urgently require the government's attention to help resolve the difficulties faced by private schools due to the debt."
KAMS has written to the Chief Minister Basavaraj Bommai seeking his involvement by convening a meeting with the private loan companies and NBFC and also to ensure the protection of the educational institutions.
