Loans – Authorities staff to get ease of pupil loans fee
Dar es Salaam. The ministry of Finance and Planning mentioned yesterday that with a purpose to ease the burden of Greater Studying College students loan Board (HLSLB) debt on its staff, Hazina Financial savings and Credit score Cooperative Society (Saccos) Ltd is planning to take over the loans to be paid at a extra conducive setting.
The ministry’s assistant director of human sources, Gisela Mugumira, mentioned this on behalf of everlasting secretary Dotto James throughout Hazina Saccos’ annual assembly.
Talking through the official opening of the assembly, she mentioned the members of the Hazina Saccos had requested Saccos to take over their loans by paying the entire charge.
“When the loan is taken over, the Saccos will enter into a contract with the employees to pay at an affordable interest rate for an agreed period,” she mentioned
She famous that the choice is amongst points which might be being really useful to create a conducive surroundings that may encourage extra staff to affix Saccos which at the moment has solely 4,500 members countrywide.
The opposite factor, she mentioned, is placing up reasonably priced loan rates of interest which have been decreased from 2 % month-to-month to 1 %.
Explaining, she mentioned there are two varieties of rates of interest together with growth and standing order, which is dangerous.
“For loans that are paid by the employee’s salary for the purpose of business, paying school fees among others, we used to charge an interest rate of 15 percent annually or 1.25 percent monthly on reducing rates,” she mentioned.
In response to her, the rate of interest has been decreased to 13 % yearly and 1 per cent month-to-month on lowering price.
Nonetheless, she famous that beneath the standing order, rates of interest for dangerous loans that the worker enters into an settlement with a bank to pay each month have decreased from 24 % to 18 % yearly whereas 2 % to 1.5 % month-to-month at a lowering price.
In the meantime, the chairman of the Saccos, Haliki Mwaiteleka, mentioned they [Saccos] have a capital base of Sh12 billion.
He, nonetheless, famous that whereas till September they’d issued loans amounting to Sh4.33 billion, they face challenges with a number of the loans issued by way of standing order association as a result of the debtors weren’t reliable.
“We have gone through and discovered that at least 13 1 million has not been paid since Janury to October 2020 denying Saccos the amount,” he mentioned.