NGO Offering 3.8% Interest Rate On its Loan Program
Parkstreet Conventional Savings, Loan and Investment (PACOSALI) Foundation, a local money lending organization says collaterals and high interest rates bar poor people from accessing loans.
PACOSALI Managing Director Jordan Maloya told Zodiak Online that even interest rates of most Village and Savings and Loans (VSL) groups are high such that some members fail to service their loans; consequently, losing their property to the groups.
"We noted that this is a serious problem and PACOSALI decided to come up with a very minimal interest rate which is 3.8% only and we believe it is affordable," said Maloya.
Meanwhile, the foundation has launched a food distribution exercise to its members as part of alleviating hunger among its members.
"Many people especially the poor fail to service their loans because they buy food using the same loans hence coming up with the food distribution exercise within the project," said Maloya.
On Sunday, the foundation distributed maize flour, beans, rice, pigeon peas and ground nuts to 86 group members in Traditional Authority Sunganinzeru in Mulanje district.
One of the beneficiaries Lizzie Likhubali from Katuta village in TA Sunganinzeru said with PACOSALI, their lives will surely improve.
"In most VSLs we pay interest rates of 20% and above and with this 3.8%, it is more like a soft loan," said Likhubali who added that the organization is also offering education loans.
Currently PACOSALI according to Maloya has 3780 members in Thyolo, Mulanje, Chiradzulu, Zomba, Machinga, Lilongwe, Dedza and Ntcheu.