In a bid to benefit from loans, teachers have been advised to desist from misusing loans they acquire from banks and Savings and Credit Cooperative Organisations (SACCOs), and instead make good use of them.
This was said by Mr. Filbert Etukoit, the Board Chairperson of Toroma Teachers Savings and Credit Cooperative Society during an interview with thecooperator magazine, at his office recently.
He revealed that most people acquire loans from different banks and SACCOs, and instead of using them effectively, they divert them into luxury ventures like buying clothes, motorcycles and public address systems, among others.
This, according to Mr. Etukoit, leads to the accumulation debt and in the end borrowers cannot pay back.
With regard to multiple borrowing, Ms. Jessica Asio, the SACCO Manager advised teachers against multiple borrowing.
According to Ms. Asio, there is much pressure, stress and depression among a section of teachers due to multiple borrowing, from money lenders.
This, she said has caused most teachers to abscond from duty due to fear of being arrested by money lenders.
“We have well established financial institutions. Even if you acquire much money, let it be a single loan from a bank or SACCO and keep servicing it slowly,” Ms. Asio advised.
“Please refrain from multiple borrowing because our problems cannot be finished,” she added.
She added that, “You see these Members of Parliament, they are highly paid but because of multiple borrowing you find some enter Parliament premises as early as 5:00am and leave past midnight when lenders have already left the gates of Parliament, so we all have problems but stick to established financial institutions.”
The SACCO Manager revealed that the SACCO started in 2017 with about Ushs. 25 million but it has now expanded to Ushs 160 million.
The SACCO is registered with the Registrar of Cooperatives under registration number P8057/RCS and it has a total of 153 members.
Although the SACCO is progressing, Ms. Asio said it still has a number of challenges, among which include; poor repayment of loans by members, inadequate supply of equipment and furniture, and lack of transport means for loans officers.