Following the presidents directive for financial institutions to restructure their loan terms for clients during the Covid-19 Pandemic, Some SACCOs have taken the opportunity to exploit their customers in dubious means.
Mhasibu SACCO Society Limited for example has been on the spotlight after customers raised concerns over increased interest rates and additional charges all on the name of consolidation and loan re structure.
Considering the banks have made favorable terms for their loaners, Sacco customers are now calling on the government to apply pressure on the Saccos to apply better terms too and not take advantage of their members.
According to Mhasibu loan adjustments documents seen by tradebellkenya from the Sacco to its customers they have reviewed their packages and increased the existing loans by 5% and an adjustment from 12% annually to 13%.
” The Sacco is taking advantage of their members as a disguise of supporting them during this corona period. The members are in uproar but the Sacco management has refused to listen to them, “said a customer who was dissatisfied with the 5% increase on his loan.
A statement from the Sacco read: We continue to monitor the current situation on corona virus (COVID 19) and our commitment to serve you remains our priority. We Acknowledge the current challenges facing our members due to adverse effect on business and economic activities. We encourage members directly affected to present or seek advice and guidance on available option with the Sacco. We present below important information on available options for loan repayment for members who are facing challenges and financial constraints.