How do I ask for help to temporarily stop repaying my loan (Runyakitara)
Josephine Hi Myriam, what are you up to?
Myriam Just visiting my bank loan officer here to make a deposit and a payment on my small business loan. And you?
Josephine Oh Myriam, I am here about my loan too. It’s my first loan and I am nervous.
Myriam The one you took out at the beginning of the season for seeds and fertilizer? Is everything ok?
Josephine I had some trouble selling part of my harvest. I’m short on cash for my repayment.
Myriam Sister let me help you. Don’t worry so much, since you have the same bank as me, let us talk together with the loan officer and see if she can agree to suspend payments for a few months to help you.
Josephine Really? What do you mean “suspend payments”?
Myriam Some banks/services will allow you to stop making payments for a certain period of time. The same way we do in the savings group, when times are tough.
Josephine So does that mean I won’t ever have to pay that part of the loan?
Myriam Ha-ha, no, no, we are not that lucky! It just means you are pushing the payment, delaying it. It helps when we face cash shortages like you, because of a bad harvest or other problem.
Josephine This would be most helpful for me, as I have a good crop of tomatoes coming in and I already have a buyer, who will pay me a good price.
Myriam Wonderful, let us see how we can negotiate together for you.
Josephine Ok thanks for this Myriam, you know everything!
Myriam Ha-ha no no, just want to share my experiences with other young women entrepreneurs like yourself Josephine!
Josephine You are easy to speak with!
Myriam But keep in mind around stopping payment: interest may continue to be charged for the time you are delaying payments. This means you will be paying more interest overall as a result, but it seems like it is the right solution for your current situation.
Josephine Ah, yes, I understand. Oh Look, Myriam, it is our turn. Your loan officer is a woman?
Myriam Well, yes! You know Josephine, there are more women loan officers now, it is easier to speak with them. Let us talk to her now.
Josephine I am ready, and I am not afraid to ask her. After all, because the interest is not stopped, the mobile money service/bank will make money with me.
Narrator Question for discussion: How is suspending payments different from cancellation of loan?