Multiple borrowers hurt MFIs

By Vision Reporter

MULTIPLE borrowing is a threat to micro-finance institutions (MFIs), the Association of Micro Finance Institutions of Uganda president, has said. <br>

By Joel Ogwang

MULTIPLE borrowing is a threat to micro-finance institutions (MFIs), the Association of Micro Finance Institutions of Uganda president, has said.

Dorothy Katantazi urged the Government to speed up the operations of a credit reference bureau and facilitate the existence of national identity cards for borrowers.

“Most clients borrow from several MFIs even beyond their capacity to pay, consequently plunging those firms into loses,” Katantazi said.
She was last week speaking at the opening of a two-day national AMFIU workshop under the theme “Economic and social development: the twin challenge of micro finance in Uganda” at Colline Hotel, Mukono.

AMFIU, founded in 1996, is the umbrella network of MFIs in Uganda. It has 120 members and 20 associate members.

Multiple borrowers hurt MFIs