The State Minister of Microfinance, Mr. Haruna Kyeyune Kasolo has asked owners of small scale enterprises to shun loans from commercial banks which he says only lead to the collapse of most businesses.
“You shouldn’t go to banks to access high-interest loans. You have your bank; an institution that has been set up by the government to support you because you don’t have the collaterals and security to access those expensive loans,” Mr. Kasolo said.
He said that such business owners should resort to loans being offered by the Microfinance Support Centre (MSC).
He was early this week speaking during the launch of Presidential Initiative on Wealth Creation and Job Creation (EMYOOOGA) at Bomah Hotel in Gulu Municipality.
He said that the government is rectifying challenges affecting the effective operation of MSC in order to benefit small scale enterprises across the country.
“We have commercial officers at the district level who should mobilize people into groups and link these groups to access financial cheaply through MSC,” he said.