55% of lenders have defaulted – MASLOC CEO

CEO of the Microfinance and Small Loans Centre (MASLOC), Hajia Abibata Shanni Mahama Zakariah, has indicated that 55 percent of lenders have failed to pay back the loans given to them by the centre.

According to her, out of the over GH¢200 million loans given out by MASLOC, only GH¢ 90 million has been paid representing only 45 percent of the total loans.

“Since 2017, under his Excellency Nana Addo Dankwa Akufo-Addo, GH¢ 204 million has been brought to MASLOC. Out of this, we have disbursed GH¢ 200,364, 504 and we could only recover GH¢ 90, 159,526.”

“That is my biggest challenge because we need to recover and do more things. A lot of people have applied and those who have been given the loans, once they repay, they can also take more but our recovery has been very very low,” she said in an interview on Asaase radio monitored by GhanaWeb.

The Chief Executive Officer (CEO) added that currently the recovery rate was only 45% and this hampered the ability of the centre to give loans to needy businesses.

She said repayment of loans was critical because it will help the centre give out more loans to help sustain and expand micro, small and medium scale businesses.

“I am hoping that by 2024 MASLOC should be able to recover about 84% of funds that have been loaned out,” she added.

She hinted that MASLOC will have to resort to court actions in other to be able to recover the loans should defaulters still refuse to pay.

MASLOC was set up by the government to provide micro, small and medium scale businesses with loans to start and expand their business with the aim of reducing poverty in the country.