Emyooga will save Ugandans from loan sharks, says Minister Kasolo

The State Minister for Microfinance, Haruna Kyeyune Kasolo has said Ugandan borrowers will be saved from loan sharks if they embrace Emyooga program.

Speaking to Emyooga sacco leaders  in Hoima  City East and West on Thursday, Kasolo said many Ugandans have lost property to loan sharks that put in place strict restrictions before one acquires a loan.

“There are money lenders who will give you shs490,000 if you ask for a loan of shs800,000. 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 infront of your house, inside the house and at your business,” Kasolo said.

“That is what we want to avoid with Emyooga. The money should be in your own saccos that you can easily borrow it.”

Kasolo said whereas commercial banks help to develop the economy, they should be left to lend to businessmen and investors and that the Ugandans will small businesses and enterprises should embrace Emyooga where they can borrow from their saccos at easy terms.

“In Emyooga, members should get loans at only 8% per annum. If one takes shs1 million, they should pay back interest of shs80,000 in a year. The big banks should be left for big investors If you are dealing in tomatoes, what takes you to the commercial bank yet you can do it in your own sacco? What takes you to the bank to sign a big heap of documents in a language you don’t understand yet you can get the same loan in your sacco?”

Kasolo said another benefit with Emyooga is that at the end of the year, members can either share profits made or decide to plough them back into the sacco.

The minister however noted that the biggest principle for Emyooga initiative is saving, noting that members ought to save every day.

“Be warned that don’t save because you want to borrow. Save because it is for your own benefit and if you borrow, pay back the loan. One of the pillars of getting rich is being trustworthy in everything you do. Be trustworthy with the money borrowed from the sacco.”

“Do not be quick to ask for money. Always seek wisdom and knowledge first.”

He warned sacco leaders against giving money to Commercial Officers who come to do auditing.

“When the Commercial Officer comes to do internal auditing, he/she should not ask you for any money. If I find in your books any money registered as transport for the Commercial Officer, I will arrest you sacco leaders,”Kasolo warned.

According to Emmanuel Twinomubeezi, the area Microfinance Support Centre zonal manager  said Hoima City received a seed capital of shs1.12billion and that loans worth shs1.2 billion have been distributed and of this, shs627 million has so far been recovered.

 

 

 

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