The minister for Microfinance, Mr Kyeyune Haruna Kasolo, has warned microfinance institutions to stop cheating the general public by charging very high interest rates on loans.
Over the past two decades, institutions that make micro-loans to low-income borrowers in Uganda, developing and transition economies alike have focused increasingly on making their operations financially sustainable by charging interest rates that are high enough to cover all their costs. This, in the process, has hurt their borrowers as they cannot expand the enterprises they borrowed for.
For more on this story visit the following link: Stop Cheating Clients, Minister Urges Microfinance Institutions
Source: All Africa