Naara Rural Bank Limited in the Upper East Region has resolved to taking its loan defaulters to court as a means of recovering outstanding loans.
Samuel Namoog, The General Manager of Naara Rural Bank Limited announced this on Tuesday in an interview on A-1 radio’s bi-weekly news and current affairs analyses programme, reporter’s visit.
According to Mr. Namoog, one of the challenges they face as a financial institution is loan delinquency. Several attempts made by the management of the bank to encourage defaulters to repay their loans had yielded no positive result hence the decision to seek the face of the law.
Mr. Namoog noted that the bank has an array of measures it can take against such borrowers including publication of names and pictures in the media and legal action.
He further disclosed that processes have been put in place to prosecute all loan defaulters. “We have already engaged the Advanced Debt Recovery Team to go round and follow- up on these loans. And we have also engaged a lawyer to prosecute those loans that have been on our books for two to three years that people have not honored them.”
Speaking on the issue, Mr. Namoog announced that some defaulters have been dragged to courts already and judgment gotten for about twenty-one people who have made payment to that effect.
“If you are given a loan for six months or one year and it goes beyond three years, we have no alternative than to use the possible legal means.” He added.
He therefore called on defaulters to do well to pay back the loans or risk being dragged to the court.
Mr. Namoog however indicated that in spite of the challenge of loan delinquencies, the bank was able to make profit of about GHS 804,000.00 last year; describing the success as the best ever in terms of profit among rural banks in the Upper East Region.
SOURCE; topnewsghana.com/ P. K Fordjour