By Kage Njoroge
Amica Sacco Chief Executive Officer James Mbui has advised cooperators to go take loans for development purposes.
“Good loans help us seize investment opportunities when they arise, which give higher rate of return than the cost of loan taken,” he said.
Mbui noted many Kenyans especially the youth fall into the trap of bad loans leading to poor repayment hence affecting family relationships and financial growth plan.
He regretted some salaried people survive on advances every month.
“Some people go the extreme of taking goods on debt such as clothes, shoes and other consumables to pay later. This method of spending creates unnecessary debts to the consumer,” he said noting that it is much wiser to save to acquire these items.
“Do not take loans for luxury things, it should be geared towards investment to generate profits for repayment,” he stated.
However, he explains nobody should fear getting into debt as long as it fits into the category of “good loan” as it is highly unlikely to get into huge investments without seeking funding from your financial partner.
“At Amica Sacco we offer tailor-made loans that ensure our members are financially empowered,” he said.