Uganda Microfinance Regulatory Authority Warns Public Against Illegal Money Lenders

Posted by: lukwago J in Uganda news August 30, 2021

Uganda Microfinance Regulatory Authority has warned the public against borrowing money from illegal money lending institutions.

UMRA Executive Director Edith Namuga says there illegal math rooming money lending institutions operating country wide with intent to rob the public of their properties.

“It had come to the attention of the Authority that some unlicensed individuals are conducting money lending business in total disregard of the provisions of the law. Section 84 of the tier 4 of microfinance institutions and Money lendors Act 2016 prohibits anyone from conducting money lending business without a license, “Namuga said.

She cautioned the public always demand certificates of registration before engaging in money borrowing ventures.

” The authority would like to inform the general public that tier 4 microfinance institutions and Money lendors Act 2016 is now effective. The authority has noted with concern the mushrooming unlicensed money lenders around the country conducting business business in defiance of the sections under the tier 4 microfinance institutions and Money lenders Act 2016 and accompanying regulations, “Namuga said while addressing media at Uganda Media Centre.

UMRA legal manager Sheila Birungi told enthusiastic business people wishing to Join money lending business to seek property legal registration so that they are authorized to operate.

” The illegal money lending companies are taking advantage of desperate people affected by covid 19 pandemic financial stress to cheat the public. We are informing the general public that the authority has finalized plans to launch enforcement operations against all those operating put side the law. We encourage borrowers to transact business with only licensed money lenders to avoid being cheated, ” Birungi said.

According to Namuga there are only 950 licensed microfinance and Money lending institutions authorized to transact money lending businesses.

” Uganda Microfinance Regulatory Authority is mandated to regulate, license and supervise all the tier IV microfinance and money lenders in Uganda.

Most borrowers are ignorant of law and borrowing agreements. Some borrowers get off pay roll and laid get into arrears,” she explained.

Namuga revealed that Umra will expand presence country in Arua, Mbarara, Jinja and Mbale as efforts to reach out country wide awareness.

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