Savings and Credit Cooperative Societies (SACCOs) have asked the government to set up a system that regulates customers from acquiring multiple loan borrowed from different financial institutions saying that the habit hinders the proper operations of Cooperative Societies.
This was revealed over the weekend during the Annual General Meeting of Rukiga Savings and Credit Cooperative Society that was held at the SACCO head office hall in Muhanga town Council, Rukiga district.
The General Manager of Rukiga SACCO John Bosco Abaho said that as SACCOs they don’t have the system by Credit Reference Bureau (CRB) Company, which is licensed by Bank of Uganda to collect and collate credit information on individuals and companies from various sources and disseminate the information in form of a credit report to authorized users.
He added that the system is only used by commercial banks, saying that if SACCOs are given a Credit Reference Bureau system which is used by a financial card; this can help to give information about the borrowers’ loan acquisition and payment history, which is shared by lending institutions as a credit risk control measure. Abaho said that some clients put the same property as security to different loans they acquire.
Speaking as the Chief Guest of Honor, the Minister of State of Finance for General Duties, Henry Musasizi said that the government through Bank of Uganda is in process of introducing a system to ensure that in future all registered financial institutions get the system Credit Reference Bureau. He however questioned loans officers from different banks and SACCOs to desist from acquiring bribes from clients before approving them to get loans.
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