PARLIAMENTARY Budget Committee Chairperson George Simbachawene has advised financial institutions in the country to look into alternatives of reducing loan interests, especially to small entrepreneur groups.
Speaking at the Mpwapwa Teachers' College Savings and Credit Cooperative Society (Saccos) annual general meeting yesterday, Simbachawene said, "Saccos that offer high interest rates are going below their targets to reduce poverty and improve the economic status of their members," said Mr Simbachawene.
"The majority of Saccos are short lived due to high interest rates, whose effects are down to the members as they cannot access the loans with set rates," added Mr Simbachawene.
However, he challenged Mpwapwa teachers tallying at 1,500, saying if they all joined forces and contributed to the setting up of the Saccos the high rate interest problem would have been history.
For his part, Mpwapwa Teachers Saccos Chairman Piniel Loilole said last year they issued 82m/- loans both as development and emergence loans to members.
Moreover, he said, there were some members, who did not service their loans as required, thus failing some of its operations.
He mentioned a big challenge they encountered last year was that some of the members, who had taken loans were on the list of ghost workers and those with fake academic certificates, thus causing a 6.6m/- loss.