Martine Erimu, the chairperson of the Teso Grain, Rice Millers, Processing and Marketers Association- TEGRIMMA, says some financial institutions limit farmers when borrowing but are fast in collecting the money.
Farmers and businessmen in Teso have decried the rate at which financial institutions are taking away their property because of delays to service their loans. Several trading centre across Teso sub region have property
especially houses, now attached by financial institution.
Martine Erimu, the chairperson of the Teso Grain, Rice
Millers, Processing and Marketers Association- TEGRIMMA, says some financial
institutions limit farmers when borrowing but are fast in collecting the money.
Erimu is concerned that a number of farmers, who venture in
commercial agriculture with loans have been frustrated by the banks after
losing some of their investments.
to Erimu, whenever a farmer requests for a loan even with substantive
collateral, financial institutions prioritise on risks and end up giving a
farmer something that may not help attain the set objectives.
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The loans have not only frustrated farmers and businessmen
in Teso but several people as well. Last year, Usuk Secondary School almost
lost the school bus after failing to pay off UGX. 127 million.
The school was
bailed out when Usuk MP, Peter Ogwang intervened with cash.
Currently, the Director Jameler Primary School, John Michael
Ebiu Erwau is battling a case with Centenary Rural Development Bank in Soroti
after the latter auctioned the school over UGX 350 million loan acquired in
According to Erwau, his school, worth UGX 2 billion was
auctioned for only UGX. 500 million without following the loan agreement. He
claims that there are fraudsters conniving with bankers to defraud the
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But Joy Christine Apolot, the Soroti District Commercial Officer, says the community should be keen when asking for loans. She notes that while a
number of people have fallen victims of bank auctions, others go for loans
without clear objectives.