The Ashanti Regional Manager of the Microfinance and Small Loans Centre (MASLOC), Hagia Zainab Sallow, has said loan recovery effort in the region over the period has been very remarkable with over 80 percent of group loans so far paid back.
She noted that repayment of loans, particularly by applicants who accessed the facility through the group loan offer, have been encouraging despite the presence of COVID-19, which has impacted the general business climate.
However, she explained that although the recovery rate of the individual loans is not at par with the group loans, which is also largely attributed to the impact of COVID-19 on businesses, the repayment has been so far good.
Hagia Zainab said since the current government administration took over several interventions have been made to make MASLOC loans accessible and affordable to the public. For instance, the initial interest rate of 24 percent per annum has been reduced drastically to 12 percent per annum.
Additionally, she said the repayment period for groups has also been extended from the original six months ‘payback time’ to 12 months ‘payback time.’ Meanwhile, she added that the repayment period is occasionally revised in some exceptions like loan support to poultry farmers, which has been extended to 18 months.
The Ashanti Regional Manager of MASLOC who was speaking in an interview at the back of a ceremony to handover cheques to members of the Ashanti Regional Poultry Farmers Association who applied for MASLOC loans, attributed the success so far to the education of loan applicant. She indicated that loan applicants are educated to appreciate the need to pay back loans on time to enable others to also benefit.
The Ashanti Regional Chairman, of the Poultry Farmers Association, Boris Baidoo, who was instrumental in mobilizing the poultry farmers and securing them the support acknowledged that the support among others help the farmers to expand their business.
He particularly noted that such interventions from the government is capable of helping poultry farmers to position themselves to produce to meet domestic demand.
He said the acknowledgement from the Regional MASLOC Manager that the repayment rate of loans accessed from MASLOC by the poultry farmers in the Region is 100 percent affirms the effort of the country leadership of the local poultry association to ensure that they are always creditworthy.
He encouraged the beneficiary poultry farmers to endeavour to sustain the standard set by the initial beneficiaries of the facility and also help to attain the feat of being able to produce to meet local consumption demand in order for to cut down on importation of the poultry.