CHALLENGES IN ASSESSING GNAT MUTUAL FUND LOAN TO MEET THE URGENCY OF NEEDS OF IT’S MEMBERS
The main purpose of taking a loan is to receive the money on time to meet the urgency and need of the individual going for the loan.
How come Mutual fund is not able to fastrack loan for its members to attend to emergencies as other financial institutions are doing without any investment with these institutions as a form of collateral? This question provoked my curiosity and interest to study and put up this write-up.
My study has found out that many Mutual fund members will never wish to take loans from these “Killer Loan” financial institutions out there but at times the emergency induces them to go for these loans as much as they know is a “killer loan”.
These financial institutions are ready to work on loans within thirty minutes but the very fund they have invested their money into for the purposes of getting a loan without stress and to save towards their retirement is not able to do this kind of service for its members.
The earliest a member of the fund can get his/her loan worked on and paid to him/her is two weeks, sometimes months later.
Meanwhile, the fund and other financial institutions all depend on the Controller and Accountant General Department for deduction of the loans.
One of the relieves a loan is supposed to give is to meet the time and urgency of the need
My recommendation which I request my honourable delegates to include as part of the important issues to be discussed in the next Conference include:
1. Decentralization of the mutual fund Loans to either the Regional Secretariat or down to the District Secretariat level.
2. These Secretariat should be upgraded to be able to serve this purpose.
3. Introduction of electronic means of assessing loan within a day after meeting specific requirements which will protect the members from fraud.
These actions when implemented will go a long way to help the Ghanaian teacher who is a member of the fund to be able to meet emergencies without going for these “killer loans” out there.
We live to Teach
The main research will be out soon.
WRITER: Aleawonor Saviour(Raja)
(A Researcher and Guidance and Counselling Coordinator)
Volta Technical Institute.