GULU CITY BUSINESS COMMUNITY ENCOURAGED TO BORROW FROM MSC

Some small-scale women venders selling in Infront of Gulu main market.

By Odong Stephen
Gulu City

The Woman Member of Parliament for Gulu City, Hon. Betty Aol Ocan, has encouraged women involved in small-scale businesses especially those organized in groups to consider borrowing from Microfinance Support Centre (MSC) instead of turning to private moneylenders who impose exorbitant interest rates.

Hon. Aol emphasized that high interest loans from moneylenders often trap women into working solely to repay debts, rather than helping them grow their businesses. She urged local residents of Gulu City to take advantage of government supported financial institutions like MSC, that offers more sustainable lending options. “I am now urging groups to go and get loans from there. Taking loans from private moneylenders will never transform their lives, it only benefits the moneylenders. Those who borrow and repay on a daily basis remain stuck, while it's the lenders who grow,” said Hon. Aol.

Similarly, Kamba Amiri, the Deputy Resident City Commissioner in charge of Bardege-Layibi Division in Gulu City, advised those with limited knowledge on how to access MSC services to visit his office for guidance. He assured the public that his office is open to assist anyone seeking help.

Simon Peter Egariat the Journal manager of   Microfinance Support Centre Gulu said their office is always open to the public. They offer free financial literacy training to any organized group, aiming to empower communities with the knowledge and skills needed to manage their finances responsibly. “This office was fully established for the people of Acholi, and they should visit it regularly to access our support. We encourage people to come and take advantage of the affordable credit available here. I always discourage people from borrowing from moneylenders, who charge exorbitant interest rates that end up suffocating their businesses. Right now, if you borrow capital at a high cost, the interest alone can bring your business down. That’s why the affordable loans provided through the Microfinance Support Center are a better option,” Egariat emphasized

A market vendor from Kabedopong Market, who preferred to remain anonymous, shared her experience, saying that her business has failed to grow because she relies on moneylenders who demand daily repayments. “Quick loans have completely brought our businesses down. Honestly, if you had the power to chase away those who offer these loans, it would be a great help. Many of us especially women vendors are now left without our national IDs because of quick loans.
Personally, I borrowed twice, and the third loan was from a lender called Assa, where I took 1.5 million shillings. Now, every Tuesday, I have to pay 75,000 shillings for six months. On top of that, I also took a daily loan of 20,000 shillings, and I have to pay back 6,000 shillings every single day.

Tell me, isn’t that enough to make someone run away? I’ve thought about running away, but instead, I continue to struggle with so much pain. These are the real challenges we women vendors are going through,” she explains.

However, Sunday Lakot, a market vendor at Cuk Pa Cenjere market in Laroo-Pece Division, says quick loans have been a great help to them saying that, these days, many husbands no longer support their families, so women are left to provide for their households and pay their children's school fees.

She adds that when a business collapses, borrowing from moneylenders can help them get back on their feet and continue operating.

Currently, many small businesses in Gulu City have collapsed due to high-interest loans from moneylenders. Some borrowers have even lost important documents like National Identification cards and other valuable properties after failing to meet repayment demands.