Only 45% of MASLOC loans repaid in five years
The Microfinance and Small Loans Center (MASLOC) recovered only GH₵90 million out of the GH₵204 million disbursed over the past five years, representing 45% of payments.
Hajia Abibata Shanni Mahama Zakariah, the Centre’s Managing Director speaking to Ghana News Agency in Bolgatanga on the sidelines of a stakeholder engagement on loans, said the low recovery rate was bad and the attributed to a misconception that loans taken from the scheme were free.
“Usually there is a misconception that money taken from MASLOC is government money and not supposed to be refunded and some people even go so far as to say that once we are NPP and our government is in power, we don’t have to pay MASLOC loans,” she said.
Hajia Zakariah, on a working visit to the Upper East region, said the institution was determined to improve its recovery efforts to support the program.
She said several interventions, including setting monthly targets for various regional officials and raising public awareness of the need to repay loans, had been put in place.
“We must support MASLOC. Our fund is a revolving fund and once the money is paid out it is meant to be recovered, that is the only way to see the organization operating in a sustainable way,” she added.
Hajia Zakariah revealed that GH₵9 million in cash was disbursed in the region and only GH₵2 million was recovered, or about 21%.
“We have other products i.e. high purchases including vehicles which have been donated to GPRTU in this region and the recovery is not good either,” he said. .
While encouraging the public to patronize the loans, which had a 12% interest rate, she encouraged defaulters to repay to help keep the program going to benefit more people to boost the local economy.
The visit was part of the CEO’s nationwide tour to interact with key stakeholders in the region to strategize to improve performance, particularly in loan recovery, to ensure sustainability.