National Economic Empowerment Fund (Neef) is projecting to disburse K30 billion worth of loans to different groups in 2022-23 financial year.
This is an increase from K27 billion which has been released in 2021-22 financial year.
The upward adjustment comes in the wake of challenges which include loan recovery.
Neef spokesperson Whyton Kapasule said over half of people who got loans last year have not yet paid back, which is affecting others from benefiting from the revolving fund.
Kapasulu also said the number of loan applicants is growing every day surpassing the resources available.
In a bid to meet the demand, he said government has recently pumped in K2 billion.
“We also hope that we will release K30 billion this year and by 2023, we will be close to K70 billion, a target which government gave us,” Kapasule said.
Random interviews with some groups in the Northern Region confirmed that accessing Neef loans is not an easy endeavour.
Wongani group leader Ayami Chipeta, whose group is based at Jenda in Mzimba, said they have been trained by Neef loan officers and they are ready to access the funds from the bank next week.
“The process should be quick so that people can be assisted in time,” Chipeta said.
Meanwhile, Kapasule said Neef has so far trained 150 loan officers who have been deployed in all constituencies in the country.
Neef has so far managed to give loans to 8,670 groups, which translates to 86,700 people who have benefitted from the finances as each group comprises 10 members.