While presiding over at Emyooga Sacco lenders in Hoima City East and West on Thursday the state minister of For Microfinance Haruna Kyeyune Kasolo told residents that borrowers will be saved from loan sharks if they embrace Emyooga program.
It’s noted that many Ugandans have lost property to loan sharks that put in place restrictions before one acquires a loan.
The minister further said that whereas commercial banks help to develop the economy,they should be left to lend to businessmen and investors and that the Ugandans with small business and enterprises should embrace Emyooga where they can borrow from their saccos at east terms.
“There are money lenders who will give you Shs 490,000 if you ask for a loan of Shs 800,000. The rest will be chopped and even before you take the money you requested for as loan,it is less. They will ask you to sit and take a photo in-front of your house, inside the house and at your business and this is what we want to avoid with Emyooga since the money should be in your own saccos so that you can easily borrow it.” Kasolo said.
In addition the the minster however emphasized that the biggest principle for Emyooga initiative was saving, noting that members ought to save daily since at the end of the year members can either share profits made or decide to ploughing them back into their sacco.
The minister further warned Sacco lenders against giving money to commercial Officers who come to do auditing and emphasized that whoever will be found guilty he or she will be arrested.
However it’s noted that Hoima city received a seed capital of Shs 1.12 billion and that loans worth shs1.2 billion have been distributed and so far Shs 627 million has so far been recovered according to Emmanuel Twinomubeezi the area Microfinance support center zonal manager.
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