Kaoma Town Council Orients CDF loan Applicants.

Kaoma Town Council Secretary Kate Mukonde said the council had observed that some beneficiaries accept amounts significantly lower than what they applied for, making it difficult for them to fully implement their business plans and generate enough income to repay the loans.

“Some applicants get amounts that are less than what their business proposal requires. Because the money is not enough to invest, they end up diverting it elsewhere and subsequently default,” Ms Mukonde said.

Ms Mukonde was responding to complaints from some community members who alleged that they had received less money than they had requested.

She advised applicants to decline loan disbursements that do not correspond with their business plans, stressing that taking inadequate funds could undermine the intended purpose of the loan.

“There is no way someone applies for a K200,000 loan and is instead given K50,000. In such instances, people end up diverting those funds and fail to invest,” she said.

Ms Mukonde further reminded beneficiaries that the CDF loan component is a revolving fund, making timely repayment essential for other community members to benefit.

Kaoma Central Constituency has so far disbursed more than K15 million to 271 loan beneficiaries under the CDF loan component.