55% of MASLOC loans outstanding – CEO

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The Microfinance and Small Loans Center (MASLOC) was only able to recover 45% of the loans disbursed nationwide.

This was revealed by the Managing Director (CEO) of MASLOC, AbibataShanniMahamaZakaria, on the Great morning show Wednesday. She indicated that out of 204 million GH, her outfit was able to recover 90 million GH, or about 45% of the amount disbursed.

She acknowledged that this recovery rate is not impressive, because according to her, “any significant microfinance institution should have around 80% recovery”.

She lamented that some recipients are unwilling to repay the loans due to a perception that the facility is a gift for their loyalty to the particular ruling party.

“At the moment our recovery rates are not the best, they should have been at 80%, but they are now at 45%. We have people who take out loans and they don’t want to pay them back. Some people still think that withdrawing money from MASLOC is free which is far from the truth and people don’t want to repay loans because of this.

“I think it’s deliberate because before you even take loans you go through certain processes that tell you it’s not free, and as the name of the institution suggests, these are loans and not grants. So I don’t know why anyone can comfortably say these loans are free unless it’s deliberate,” she said.

“Some people even say MASLOC is for the ruling party, which it isn’t, but those are the realities on the ground and we are working to clear that misconception,” she said.

Over the weekend, reports of low loan recovery rates at MASLOC broke, with the institution’s CEO lamenting the development. According to her, outside the Ashanti region, low recovery rates have been recorded across the country. She cited, for example, the cases of the Volta and Oti regions which, according to her, recorded recovery rates of 11% and 16% respectively.

She thus called on the general public, in particular the beneficiaries of the loan facilities, who have not yet cleared their debts, to do so. She assured that her outfit was putting measures in place to bring the situation under control, “we can send formal notices to the defaulters and if they fail, we can go to court”.

She also believes that making beneficiaries aware of the loan facility and providing them with financial knowledge before loans are disbursed will significantly improve the recovery rate.

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