Ghana: Interest on MASLOC Microloans to be Slashed in Half

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May 2019
Ghana, May, 27 2019 - President Nana Addo Dankwa Akufo-Addo has approved a reduction in the interest rate on loans acquired from the Microfinance and Small Loans Centre (MASLOC) from 24 per cent a year to 12 per cent.

This was disclosed by the chief executive officer of MASLOC, Stephen Amoah, at the "People’s Forum", organised in Kumasi at the weekend.

GHC75m boost

The MASLOC boss said the Akufo-Addo-led government has transformed the Centre since assuming the reins of power in 2017. MASLOC has received GHC75 million from the government to boost its operations, he added.

Mr Amoah explained that all MASLOC loans are for a period not exceeding 12 months, within which beneficiaries have to repay their loan with interest.

‘‘In the case of the small or individual loan scheme,” he said, “an individual can now access a minimum loan of GHC1,000 with an interest rate of 1 per cent per month and 12 per cent for the year.

“This is what President Akufo-Addo has just approved when he met us at the seat of government and it tells you that the President is really working,” he said.

Decentralisation

Mr Amoah assured the public that the loans are meant for all Ghanaians, irrespective of their location. He asked potential applicants who are yet to access the loan to do so, provided they meet the basic requirements.

MASLOC began expanding its frontiers in 2017 to cover virtually every corner of the country. To this end, the microfinance apex body plans to set up offices in each district to interface better with Ghanaians by the year 2020.

A deputy chief executive of MASLOC, Maame Afia Akoto, told the press: “By the end of the year, we want to extend our operations to about 70 per cent of districts in the country, with well-established offices in each district.

“And by 2020, MASLOC intends to have an office in each district in the country. This will also allow our clients and potential clients to have swift access to the centre.”

While conceding that MASLOC’s “One District, One Office” initiative is ambitious, Ms Akoto said she firmly believes that it will help in better disbursement and recovery of loans by the centre.

MASLOC

MASLOC, introduced during the tenure of President John Agyekum Kufuor, is an organ of state responsible for implementing the government’s microfinance programmes targeted at reducing poverty.

It provides microloans and small loans for start-ups and small businesses with fast, easy and accessible microcredit and small loans. This helps small entrepreneurs to grow and expand their business as well as enhancing job and wealth creation.

With a commitment to growing and developing small-sized and micro businesses by providing sustainable microfinance, small loans and business services to Ghanaian entrepreneurs, the centre has created employment by empowering individual drivers who belong to unions with a work-and-pay package that allows them to become car or tricycle owners after a four-year period.

Over the years, MASLOC has also helped poultry farmers to boost production of broilers, layers, turkeys, guinea fowl, ducks and other farm birds by providing them with small-scale financial support.



Source : The Statesman
 

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