Loan Delinquency, Major Bane to KEEA Workers Credit Union- Board Chairman

The Komenda Edina Eguafo Abirem (KEEA) Workers Credit Union has held its annual general meeting at the KEEA Municipal Assembly Hall. The meeting saw the attendance of Members, Management and  Baord of Directors of the union. It was during this meeting that Board Chairman, Dr Ekow Amankrah Otabil identified loan delinquency, a term used in the financial circles to refer to the inability of borrowers to pay back their loans on time the main problem hindering the progress of the Union.

The newly appointed executives of the Union

Dr. Amankrah after addressing the meeting, met the media to brief them on the various challenges the Union face in the Municipality and the major one, according to him is the failure on the part of members to pay back their loans on time.

“…………We have many challenges as a credit union but chief among them is what we term as ‘loan delinquency’. A lot of members fail to live up to their obligations after they have been given loans. If you look at our financial report for the year under review you will reckon that we couldn’t meet our target and that is mainly blamed on this phenomenon” the Board Chairman revealed.

Among the challenges according to him is members’ failure to apply for loans but just resort to savings withdrawal, apparently, because of the fear that they might not be able to pay back the loans.

“………. If we take you through our records you will find out that most of our members only withdraw their savings and don’t come for loans.  As a credit union we depend a lot on the interest on loans so if members are not taking loans it becomes a major challenge for the scheme. This explains why we failed woefully in achieving our targets on the interest on loans”.

He took the opportunity to cure the mischief out there that members go through thick and thin before they are granted loans. According to him, the Board and Management had agreed that the Manager can give loans up to Ghs500.00 at his level. So anyone seeking a loan within the range of Ghs500.00 will get it in not more than 48 hours provided they fulfill all requirements. However, if you apply for a loan more than that amount the manager would have to seek approval from the Board with two additional members: Board Chairman and the Treasurer pending their signatures before it can be granted. Since these members aren’t regular workers (Volunteers) it usually takes a long time to get them to approve it.

The Manager, Hon. Thomas Bofo Quaicoo on his part, assured members of the union that their funds are safe and so there is no cause for alarm. He debunked rumors that the union usually runs out of funds that is why members are not able to access loans sometimes. According to him, the union has a great deal of credibility over the twenty (20) years period of its operations. He appealed to workers in the Municipality who are not members yet to come and join the Union in order to enjoy the benefits thereof.

 

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