Rwanda : Govt school teachers to pay low interest rates on loans
While private school teachers pay 14percent on loans, govt school teachers will be charged 11 percent interest yearly in 2013, Joseph Museruka; Head of Umwalimu Sacco has revealed.
Museruka says the interest charge reduction is aimed at alluring teachers to stick on public service than branching to private schools for higher salaries and other benefits.
“We hope that this will prevent teachers from resigning their duties in government schools to join private schools where they get allowances and higher salaries,” he explains.
To carry out this activity successfully, Sacco requires close to Rwf5 Billion from the government of Rwanda, to increase its capacity in availing loans to many teachers.
However, Rwf5 Billion will be used in enabling teachers to start
income generating projects and setting up affordable accommodation. Government school teachers will get a reduced interest rate to attract teachers from private schools into government schools.
Umwalimu SACCO was started in 2006 to help teachers access loans and pay low interest since their salaries are low.
Umwalimu Sacco has 60000 members teachers in Rwanda, 39000 get paid through it while others get loans.
Mr. Joseph Museruka notes that ever since this cooperative started, it has given out Rwf35 Billion to 35000 as loans, which they have paid back with interest.
Though it made losses equivalent to Rwf454 millions in 2009, Umwalimu Sacco is expected to profit Rwf1 Billion this year 2012 after making Rwf64 millions in 2010 and Rwf700 as profit in 2011, he stresses.
Ahishakiye Jean d’Amour