Ghana remains one of the African nations with the highest interest rates and lack of easy access to loans for businesses. Subsequently, individuals and institutions in the country have suffered the set-backs of not finding the right funding for their existing businesses, let alone to start new ones. The lucky few who happen to find some loan capital had to endure the high interest rates: which mostly lead to defaulting – not paying on time or not being able to pay fully at all.
The introduction of Quick Credit Ghana to provide speedy lends made it easier for people to access loans, however, this is at an interest rate of 30%: to be paid in just thirteen weeks. While some Ghanaians appear to be comfortable with that, others are not. For reasons unknown, one can only argue bad market or sales for the inability of some customers not to fulfill their loan repayments on time.
The loan company put in place a loan retrieval team, which was recently dissolved due to the hash and unlawful procedures that they were employing as their modus operandi. Their style struck fear in customers: in that most of them had to suffer humiliation either verbally or physically. Others had to abandon the comfort of their homes to avoid the shame of humiliation. The tyranny of the team members led to some haven been arrested by the police.
The dissolution of the loan retrieval team was applauded by all Ghanaians because their tactics was becoming terroristic and was preventing the company from winning new customers company. Though Quick Credit Ghana as company did not state clearly how they will now retrieve their money, it is clear that one of the problems associated with the issue has not been addressed – the forceful signing of bond at the police station for defaulting.
A lot of people can testify to the fact that they were made to sign bond at the police station for defaulting in their loan repayment. Financial issues of such sort are civil matters. Defaulting of loan repayment is not a criminal matter. One can therefore easily argue that the involvement of the police is unlawful; and also unprofessional on the part of the police, who have of late taken the laws into their own hands.
Some banks and financial institutions in Ghana that give out loans do so on per annum basis: and that benefits their customers. Giving customers only thirteen weeks to repay their loans, which are mostly huge sums with huge interest, is like ‘nailing them to the cross.’
We have had the history of financial institutions beginning well only to be shut down by the powers that be. For Quick Credit Ghana to avoid legal actions and possible strikes by the Financial Intelligence Center (FIC), it is our advice that they operate within the laws of the land. Also, to satisfy their customers the more, they should extend their loan repayment period to seven months or even a year.
Ghanaians need easy access to loans to build start-ups to create employment opportunities. Quick Credit Ghana should evaluate start-up applications and give out loans as much as Gh¢50,000 or more to qualified applicants.
All customers are also advised to try as much as possible to fulfill their repayment obligations;
and to communicate any problem faced in a very polite way.
By Sylvo Ben-Afa