NJOMBEa District Commissioner Kissa Kasongwhas urged beneficiaries of the 10 percent loans issue by councils to use the money for the intended projects and ensure timely repayments.

Kasongwa made the appeal at the weekend while presenting   474.95m/- cheque to 81 groups comprising women, youth and people with disabilities in Makambako Town Council.

She cautioned that misuse of the funds would hinder repayments, ultimately preventing others from accessing future loans.

"Misusing them money will lead to repayment failures, denying others the opportunity to borrow," Kasongwa said.

Makambako Town Council Chairperson, Hanana Mfikwa, advised beneficiaries against spending the funds on celebrations, stressing that loans require proper management and hard work to generate profits and ensure timely repayment.

Vasco Mgunda, Secretary to Makambako MP, urged beneficiaries to avoid allowing the funds to create conflicts within their marriages.

Prosper Vedasto, a beneficiary, pledged to invest the funds in income-generating projects to facilitate timely repayment.

Of the total loan disbursed, 57 women’s groups received 352.6m/-, 14 youth groups received 86.25m/-, and 10 groups of people with disabilities received 36.1m/-.

The 10 percent loans were first introduced in 1993 to empower marginalised groups, namely women and youth, who lacked collateral for financial institution loans. In 2018, an amendment to the Local Government Financial Act Cap 290 Sec. 37A made it mandatory for local government authorities (LGAs) to allocate 10 percent of their internal revenue as interest-free loans. The loans were designed to empower women, youth, and people with disabilities by enabling them to undertake income-generating activities to lift their households out of poverty.

The scheme operates as a revolving fund distributed according to the 4-4-2 principle: 40 percent for women, 40 percent for youth, and 20 percent for people with disabilities.