Leaders have united in advocating against the money lending business, stating that it has led to property losses due to exorbitant interest rates that become difficult to manage. The state Minister for Finance, Hon. Henry Musasizi, and Ndorwa County East MP, Hon. Wilfred Niwagaba, issued a stern warning to the public to avoid money lending and opt for other financial institutions such as banks and Savings and Credit Cooperative Organizations (SACCOs) due to their friendlier interest rates.
The leaders made these remarks during the official launch of the Muko Kampala Community SACCO and the opening of new offices at Muko Catholic Parish headquarters in Muko Sub County, Rubanda District, on Saturday, June 22, 2024.
Minister Musasizi also cautioned money lenders against imposing high-interest rates on borrowers. He mentioned that the government is proposing new guidelines to cap interest rates charged by money lenders. “We are working on new regulations to ensure that interest rates are fair and manageable for all borrowers, as ministry of finance we are consulting to see these are no longer challenges” Musasizi stated. He also revealed that the government is looking into setting up a legal framework to address the issue of high interest rates comprehensively.
Honorable Niwagaba, speaking during the function, rallied the locals to avoid money lenders and instead use other financial institutions such as banks for their favorable interest rates. He called upon the public to avoid using land as collateral. “We must protect our properties and avoid the risk of losing them due to high-interest loans,” Niwagaba urged.
He also highlighted the government’s Security Interest in Movable Property Act, which was made with the aim of providing soft solutions and comfort in money lending. “This law aims to offer more secure and fair lending practices, and we encourage everyone to be informed about their rights and options,” Niwagaba added.
The leaders also urged the SACCO to adhere to the Cooperative Societies Act to ensure a successful initiative that will assist the community in improving their household incomes. “By following these guidelines, the SACCO can become a pillar of financial support and growth for our community,” Musasizi emphasized.
The launch of the Muko Kampala Community SACCO is seen as a significant step towards providing more sustainable and community-friendly financial solutions.
ENDS///////
