ALEBTONG – Islamic Development Bank has given a Shs 60 million soft loan to four village savings and loans associations [VSLAs] in Alebtong district.
The money was provided through Local Economic Growth Support [LEGS], an integrated rural development initiative financed by the Bank and Government of Uganda.
The loan is intended to boost the businesses of members who belong to the beneficiary in VSLAs and farmer groups. The money will be paid back within a period of one year.
The four VSLAs that have received the money include Obanga-amio VSLA [Shs 20mln], Neno-Abor VSLA [Shs 20mln], Anara Rice Farmer’s Group [Shs15mln], and Bedigen VSLA [Shs 5mln].
Meanwhile, both Canpe-ciki and Obanga-atwero VSLAs are still awaiting to receive Shs 10mln and Shs 5mln respectively.
Richard Okello Ali, the chairperson of Neno-Abor VSLA said repaying the money at the end of the year is good for members who are interested in the development of their households.
“This is our first time to receive this kind of money. The issue of paying back monthly does not help us solve our problems. Paying back the money at the end of the financial year helps to gain something out of it,” Okello said.
Meanwhile, Richard Ogwang, the chairperson of Bedigen VSLA said the money should always come early to facilitate proper planning since most of the members are farmers who require to purchase different inputs.
He also appealed to the Microfinance Support Centre [MSC] to give VSLA members more money in the next disbursement.
“The first money we received is small, but if we pay back we request that you give us more money and make it earlier since we are farmers. We always buy farm materials early enough for us to get good yields,” Ogwang said.
Florence Ebong, one of the beneficiaries said she would use the money to boost her small business.
“I will buy more goods like silverfish, millet, tomatoes that I will trade so that I can pay back the money in time,” she said.
Whereas Betty Ayugi who grows in maize, and soybeans said she would use the money to open up her farm and buy planting materials. “With the money received, I will carry out my farming in time,” he said.
Christine Joy Auma, the Alebtong principal assistant secretary who doubles as the focal point person of LEGS was relieved that most of the targeted beneficiaries got the funds money to support their businesses.
“I am now relieved from the pressure of demand for the money from the targeted groups because they have now received it, Auma said.
Henry Opio, the relationship officer at MSC who witnessed the distribution of funds at Bedigen VSLA was delighted, saying the group is willing to pay back the funds in six months’ time much as it is supposed to be paid within one year.
“The money is supposed to be paid for one year but I am glad that you have committed yourselves to repaying within a period of six months which is a good gesture,” Opio said.
Opio however cautioned the beneficiaries to put the money into proper use so that other people can also benefit from the revolving fund.
“The money is small for everyone but use it wisely so that you will be able to repay and allow others to also benefit from the fund,” he said.
https://thecooperator.news/equity-bank-readies-loans-for-small-enterprises-in-acholi/
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