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Borrow prudently, teachers counselled

20th December 2012
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The government has warned 1,318 members of the Iringa Teachers Saccos Ltd to stop providing false information in order to get more loans from the institution.

It said the situation led to most of them being in almost perpetual financial doldrums because their salaries ended up servicing a number of loans.

The warning comes in the wake of reports by the Saccos management that some of its members were being weighed down by debts they owed the Saccos.

Iringa District Executive Director Prudenciana Kisaka found herself forced to issue the warning after she received a report from the Saccos board during its 15th general annual meeting.

“Teachers take several loans and remain with nothing in their salaries. Taking more than one loan at a time is facilitated by some of you providing false personal particulars, which is dangerous for you," said Kisaka.

Reading the board's report, Saccos chairperson Abbas Kamote told the director that the main challenge was of members taking loans without proper plans.

“Most take many loans. We have an example of a teacher who borrowed from a bank, a saccoss and a microfinance institution. As a result he surpassed the legal limit of two-thirds of his take-home pay," said Kamote.

In the past 10 months of this year, the Saccos has dished out loans worth 554,508,616/-.

The loans were given to enable members improve their economic status, build houses, further agricultural projects, access health services and start income-generating projects.

SOURCE: THE GUARDIAN