Summary:
- Residents in Oyam district are selling off assets at reduced prices to repay Village Savings and Loan Association (VSLA) loans, as financial challenges arise from low crop prices and delayed harvests, leading to reports of members disappearing and numerous complaints from VSLA groups.
According to local leaders in Oyam district, the pressure induced by the Village Savings and Loan Association (VSLA) this Christmas season is compelling Oyam residents to sell their assets, including bicycles, motorcycles, and household items, at reduced prices to settle loans acquired from the VSLA.
Numerous VSLAs are currently dispersing the funds saved throughout the year, and members with outstanding loans are obligated to repay them along with accrued interest. However, some are encountering financial difficulties in meeting repayment obligations, and there are reports of members disappearing from their residences.
Mose Okello, the chairperson of LC One Apur-bwonyo in Acaba sub-county, Oyam district, discloses that his office is receiving daily complaints this month from VSLA groups regarding members who have borrowed money but failed to repay it.
Robert Ogwal, LC One chairperson of Kutodingo village in Otwal sub-county, Oyam district, highlights that the challenges are rooted in the reliance on the second harvest. This year, crop prices are low, and some crops are still in the fields, posing obstacles for individuals to acquire funds promptly for loan repayment.
Additional Reporting by The Ankole Times
