Government gives K150m loans to civil servants

THE Public Service Micro Finance Company (PSMFC) has disbursed over K150 million in form of loans to public service workers for the past three years.
PSMFC chief executive officer Mubanga Mwiko said the repayment of these loans has been good as only two and half percent of the beneficiaries have defaulted.
Mr Mwiko said in an interview recently that the company’s loan portfolio has also grown from K3 million to K4million.
“This is sustainable for us in the long run, and as a company, we have really grown and we are expecting to grow even more with the introduction of the vehicle loan scheme,” he said.
He said this initiative entails that the company will have a constant cash flow with funds coming from civil servants through vehicles being loaned to them.
“We will be expecting to have over K6 million every month which will then be loaned to interested beneficiaries,” Mr Mwiko said.
Mr Mwiko said Government is expected to pump in K70 million this year in the vehicle loan scheme.
“Instead of government giving us capital contribution regularly, they have brought the products to us as a way of generating the money,” he said.
He said the vehicle loan scheme will also help reduce the high demand on the treasury which used to spend huge sums of money to buy vehicles for senior civil servants.
Mr Mwiko said the company has also introduced educational loans and K10 million has been set aside for those that may be interested.

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