Co-ops want ban on loan sharks
May 16, 2010
MONEY lending activities should be outlawed to save borrowers from exorbitant interest rates, a top official urged over the weekend.
By Bwogi Buyera
MONEY lending activities should be outlawed to save borrowers from exorbitant interest rates, a top official urged over the weekend.
Silver Ndorwamukama, the Uganda Cooperative Savings Credit Union western regional field officer, explained that due to high interest rates on the loans, many people had defaulted, ending up having their property attached.
Ndorwamukama disclosed that loss of property had forced some borrowers to commit suicide.
“It is high time people start using micro-finance institutions instead of running to the money lenders whose interest rates out of reach for the common man and also who end up grabbing their property,†he advised.
Ndorwamukama, who closed a five-day meeting for the over 150 managers and chairpersons of the savings and credit cooperative societies (SACCOs) in Kigezi region, argued the public to make use of the mushrooming micro-finance institutions that offer loans on friendly interest rates. Silver Baguma, the Kabale district acting chairperson, said poverty could be eradicated if Ugandans adopted a saving culture.
He warned the SACCOS managers against embezzlement of the people’s savings and the Government funds under the prosperity-for-all programmes.
He explained that this had been the reason why many people lost trust in joining the SACCOS.
Joab Baryayaka, the Uganda Co-operative Savings and Credit Union regional coordinator, said the training would empower SACCO’s leaders in smooth running of their respective village banks.
He blamed the poor response to SACCOs by the public on the Government failure to come out and explain the legality of pyramid cycles that have conned people of their savings.
Baryayaka urged the public to join SACCOs because it is where the Government is channelling the prosperity- for-all money.
MONEY lending activities should be outlawed to save borrowers from exorbitant interest rates, a top official urged over the weekend.
Silver Ndorwamukama, the Uganda Cooperative Savings Credit Union western regional field officer, explained that due to high interest rates on the loans, many people had defaulted, ending up having their property attached.
Ndorwamukama disclosed that loss of property had forced some borrowers to commit suicide.
“It is high time people start using micro-finance institutions instead of running to the money lenders whose interest rates out of reach for the common man and also who end up grabbing their property,†he advised.
Ndorwamukama, who closed a five-day meeting for the over 150 managers and chairpersons of the savings and credit cooperative societies (SACCOs) in Kigezi region, argued the public to make use of the mushrooming micro-finance institutions that offer loans on friendly interest rates. Silver Baguma, the Kabale district acting chairperson, said poverty could be eradicated if Ugandans adopted a saving culture.
He warned the SACCOS managers against embezzlement of the people’s savings and the Government funds under the prosperity-for-all programmes.
He explained that this had been the reason why many people lost trust in joining the SACCOS.
Joab Baryayaka, the Uganda Co-operative Savings and Credit Union regional coordinator, said the training would empower SACCO’s leaders in smooth running of their respective village banks.
He blamed the poor response to SACCOs by the public on the Government failure to come out and explain the legality of pyramid cycles that have conned people of their savings.
Baryayaka urged the public to join SACCOs because it is where the Government is channelling the prosperity- for-all money.