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Steven Bangonzya the Shuuku SACCO Board Chairperson, revealed that the SACCO has seen improved loan recovery since embracing CRBs.
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By Mwijukuru wa Kibondo
Sheema - Savings and Credit Cooperative Societies (SACCOs) have been encouraged to use Credit Reference Bureaus (CRBs) to prevent members from taking multiple loans and to promote financial discipline. This move aims to curb excessive borrowing and encourage financial responsibility among members.
A Credit Reference Bureau (CRB) system collects, stores, analyzes, and provides credit information on individuals and businesses to lenders and financial institutions.-
Speaking at the 26th Annual General Meeting of Shuuku SACCO, held at the SACCO's premises in Kishabya Town, District, Asasira Winston Kafurembe, the Sheema District Commercial Officer, emphasized the benefits of using CRBs. He stated that by sharing credit information through CRBs, SACCOs can verify members' creditworthiness by assessing their credit history and ability to repay loans, thereby preventing over-borrowing.
"This system identifies individuals with multiple loans from different SACCOs, which reduces the risk of default," he explained.
Steven Bangonzya the Shuuku SACCO Board Chairperson, revealed that the SACCO has seen improved loan recovery since embracing CRBs.
"The use of Credit Reference Bureaus enhances loan recovery by sharing information on defaulters," he explained.
He added that the system not only reduces multiple borrowing but also facilitates faster loan processing by providing lenders with quick access to credit information, streamlining the loan application process.
Hebert Ahimbisibwe, the General Manager of Shuuku SACCO, announced that they have launched coffee agriculture loans to support coffee farmers by providing them with access to financing to improve their coffee production and productivity.
"As Shuuku SACCO, we are committed to supporting the agricultural sector, particularly coffee farmers, and contributing to the growth and stability of the local economy," Hebert said.
Meanwhile, Emmy Tumusiime, the Chairperson of Sheema SACCOs Union, who presided over the function, urged members to increase their share capital to boost the SACCO's financial stability and business growth.
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