Couple flees village after Shs500,000 wedding loan skyrockets to Shs1.25m

A wedding intended to be a joyous occasion has led to the flight of Leo and Hellen, a couple from Teyao Village, Lira District, after they failed to repay a loan taken for their nuptials. Leo initially borrowed Shs500,000 from the village savings and loan association, Note En Teko, in March with the intention of repaying it within a month along with Shs150,000 in interest. As collateral, he pledged a piece of land.

However, the repayment never materialized. By mid-September, the debt had escalated significantly, with Note En Teko demanding Shs1.25 million, comprising the Shs500,000 principal and Shs750,000 in accumulated interest. Fearing repercussions, the couple separated, with Leo leaving their matrimonial home in May and Hellen returning to her parents’ home in July.

Further complicating matters, when the savings group attempted to claim the pledged land, they discovered Leo had already rented it out. Michael Odongo, the LC3 chairperson of Ogur sub-county and Hellen’s brother, confirmed the couple’s disappearance, noting that his sister had returned home while Leo’s whereabouts remained unknown. He also mentioned that Leo is reportedly residing in a remote area near the South Sudan border.

Local leaders indicate that such incidents are not uncommon in the area. The LC3 chairperson reported that at least three men have fled their homes this year in Ogur Sub-county alone due to similar financial issues, leading to the collapse of their marriages. Financial experts caution against diverting loans meant for productive purposes, such as business investments, towards consumption, highlighting the importance of timely repayment to maintain the revolving nature of these funds.

Source: https://www.monitor.co.ug/uganda/news/national/couple-flees-village-after-shs500-000-wedding-loan-balloons-to-shs1-25m-5612866