Business

Mbale Market Vendors Decry High Loan Interest Rates

Mbale Central Market

By David Oduut

Vendors at Mbale Central market have decried the high interest rates they are charged when acquiring loans from commercial banks.

The market which occupied by over 6000 vendors, side effects http://channelingerik.com/wp-content/plugins/jetpack/modules/monitor.php has only three small scale SACCOS, this http://culture.you-ng.it/wp-content/plugins/jetpack/json-endpoints/class.wpcom-json-api-update-post-v1-1-endpoint.php a situation that has forced many of them to rely on loans from commercial banks and private financial dealers to sustain their businesses.

Bakar Nabende, a vegetable vendor at the market said it has proved difficult for many to sustain businesses due to lack of small scale business friendly loans.

“Every month we see our colleagues packing their belongings heading back to the village because business has collapsed, we need urgent intervention from government,” Nabende who also doubles as the chairperson information and research committee at Mbale central market said.

37 year old Maimuna Isabirye a tomato dealer in the market said she has failed to send her nine year old daughter back to school as she is being bogged down by the Sh. 2 Million loan she acquired from a commercial bank last year in August.

“I thought this loan would help me build my business but now the pressure is too much, actually I have realized that the 25% interest rate is not fair to me,” Isabirye said.

Ayub Madoi the chairperson of the market has since requested for improved access to financial loans through Micro finance Support Center.

He said most vendors in the market are still struggling to recover from the losses suffered when fire gutted the market in 2012 hence a dire need for low interest loans.

“You know some time back the market was burnt and it affected people severely, so many have heavily relied on loans which have proved difficult to sustain. I request that an organization like Micro finance Support Center (MSC) should get in to rescue the situation,” Madoi lamented.

The Microfinance Support Centre is a government owned organization under the Ministry of Finance, Planning and Economic Development.

With a primary goal of increasing incomes at household level, MSC is mandated to provide affordable credit and business development services to microfinance and other registered business organizations in Uganda.

Early this week MSC held a crusade with Mbale main Market vendors in a bid to support them grow their businesses.

Part of the activities held included; addressing credit accessibility for vendors, Savings and Credit Cooperatives Societies (SACCOS) management among others.

Speaking to Chimpreports, Rosette Nakanwaji the Manager Marketing and communication said they have noticed a growing need of sensitizing and supporting small scale businesses in country as they directly influence household financial growth, a reason they moved in to interact with Mbale Main Market vendors.

“The market vendors are some of our biggest targets, they are very key because we know that those small businesses matter as they are the ones supporting families so all our initiatives are geared towards seeing these small businesses grow,” Nakanwaji noted.

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