Iringa teachers’ SACCOS disburses Sh838m loans to members

17Dec 2017
Friday Simbaya
Guardian On Sunday
Iringa teachers’ SACCOS disburses Sh838m loans to members

IRINGA Rural Teachers' SACCOS has provided loans to its members worth Sh838mn between January and November this year, the society’s chairman, Laurent Aaron Mwilafi, revealed recently at its annual general meeting.

He said at least Sh792mn was issued as normal loans to 353 members and Sh45mln was issued as emergency loans.

Mwailafi said the loans focused on payment of school fees, construction of homes, transport, agriculture, medication, trade, social affairs and animal husbandry.

According to him, all issued loans were sourced from internal capital. He encouraged members to increase their savings and ensure that retired teachers invested their Sacco’s bonuses.

The SACCOS has a total of 1,260 members where 581 are men and 679 are women.

Despite the success, he said they encountered challenges in lending where very little money was being dished out to members due to low wages from members.

He named other challenges as high interest rates from financial institutions when borrowing money to increase their capital base.

For his part, Iringa District Commissioner Richard Kasesela advised members to repay their loans timely to enable them get more loans.

“There are members who have borrowed from other financial institutions which accounts for a quarter of their salaries and remain with peanuts for their families after the Sacco’s deductions,” he said.

Iringa Rural Teachers' SACCOS serves Iringa and Kilolo districts, which together have more than 2,922 teachers, but only 1,260 teachers are active members.

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