BY : Rose Kasigwa

Local leaders in Zombo District have warned residents against taking on multiple loans, citing the risk of property loss and worsening financial hardship.

Bolingo Francis, the LC5 Councilor for Athuma Sub-county, cautioned that failure to repay loans can result in the seizure of property. He expressed concern over the practices of some financial institutions, noting that they issue loans with stringent conditions, including high interest rates. According to Bolingo, this has contributed to domestic conflicts, increased poverty, and cases of debt-related imprisonment.

To address the growing borrowing trend, Bolingo advised residents to only take loans they can comfortably repay. He also encouraged borrowing from family members, saying it often allows for more flexible repayment terms and reduces the likelihood of legal disputes.

A similar message was echoed by Ojok Wilfred, the LC3 Chairperson-elect of Warr Town Council. He urged residents to explore and diversify income-generating activities instead of relying on loans that may become difficult to service.

Ojok noted that many individuals have already lost valuable assets to financial institutions after failing to meet their loan obligations, underscoring the need for financial prudence among residents.