General News

Repaid GH¢15,000 loan turns sour Biz woman Chases Yilo Star Micro Finance ; Over bizarre loss of land documents

September 1, 2020 By 0 Comments

biz woman

Madam Elizabeth Joyce Addo-Ntim, a Koforidua-based businesswoman, is threatening to drag the management of Yilo Star Micro Finance Limited (YSMFL) to court over negligence.

According to the businesswoman, in an effort to expand her business and increase productivity, she applied for a loan facility of GH¢15,000 from Yilo Star Micro Finance Limited at the Nkurankan branch on May 27, 2016.

She disclosed that she was handed over to a certain Augustine, who is the Loan Officer, to take her through the procedure and requirements of the loan application. Upon a thorough and marathon presentation, she was asked to provide collateral for the loan facility.

According to Madam Addo-Ntim, she was told that the policy of the company was that before anyone applies for a loan, the applicant must pay 20 percent of his or her cash earnings, together with a guarantor and collateral, depending on the amount applied for.

The officer in-charge will then enter the required information into a register, and it is through that information that the company would hand over the document to the applicant involved after payment.

To this end, the company required landed property document as collateral, and so she used her mother’s house to that effect. After an affidavit and thorough search and confirmation over the ownership of the document were completed, the loan of GH¢15,000 was granted.

She had to pay interest of GH¢1,751 every month for a period of 12 months (GH¢6,012) on the GH¢15, 000 loan, making it a total of GH¢21,012.

According to Madam Addo-Ntim, after she successfully finished with the full repayment of the loan, she decided to go for her documents, but she was asked to come back in a fortnight, since the keys to the safe could not be found.

“I went there after two weeks, but was only told that my document could not be found. I have tried all means since 2017, but the documents for collateral have not been given back to me,” she added.

The Koforidua-based businesswoman indicated that all efforts to have her document since 2017 have been unsuccessful.

In order to seek redress, she averred that she took the matter to the Eastern Regional office of the Legal Aid Commission on June 8, 2018, but it appears management of the micro finance company was not ready to produce the collateral to the applicant.

In a letter dated April 20, 2020 and signed by Akuoko Frank, Assistant ADR Officer on behalf of the Regional Director of Legal Aid, the respondent admitted that the loan and interest of                  GH¢21,012 given to the applicant in 2016 had been paid.

That due to the negligence of the applicant in not signing the Bank Register for submission of the document, as well as the Loan Officer, the document of the house could not be found at the bank’s premises.

It was contained in the letter that both parties accepted their respective mistakes, and, hence, agreed to collaborate in retrieving the original documents from the Lands Commission. That both parties were to share the cost involved in retrieving the original document by 30 percent for the applicant and 70 percent for the respondent.

The letter further disclosed that the respondent later informed the Legal Aid Commission that they faced some challenges at the Lands Commission, and after another grace period was given to the respondent, the latter came back to inform Legal Aid that the document could not be found at the Lands Commission.

The office of the Legal Aid Commission has, therefore, asked the applicant to take the matter to court to seek redress, since the respondent was not ready to collaborate for an effective resolution process.

When contacted to confirm the case, the General Manager of Yilo Star Micro Finance Limited (YSMFL), Mr. Joseph Aryee Darku, admitted that the repayment had been made, but the document could not be found, and called on the applicant to exercise patience, as they were working on retrieving it.

Yilo Star Microfinance Limited (YSML), according to its Facebook account, is a non-banking institution with a license from the Bank of Ghana to operate.

The company started its operations in 2014 in Somanya, Eastern Region, with just a branch, but can now boast of different branches in Koforidua, Nkurakan, and Asesewa, and is now expanding to Madina, Kasoa and Ashaiman.

YSML seeks to better the financial lives of petty traders, market women, businessmen and women, salaried workers, government workers, and many others by providing tailored made financial solutions.

YSML has a solid backbone of established and renowned businessmen and women who have vast and rich experience in the financial industry, and have also been at the forefront of affairs of our country Ghana.

Meanwhile, the Editor, Mr Emmanuel Akli, and his team in Accra have started flipping through the files to establish the owners of the company.

Keep on reading this paper as we hope to bring you the inside ‘filla’.



0 Comments on "Repaid GH¢15,000 loan turns sour Biz woman Chases Yilo Star Micro Finance ; Over bizarre loss of land documents"


Would you like to share your thoughts?

Your email address will not be published. Required fields are marked *

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

error: Content is protected !!
%d bloggers like this: