UMRA Cracks Down On Unauthorized Online Loan Providers In Uganda

Posted by: lukwago J in Life Style August 27, 2024

The Uganda Microfinance Regulatory Authority ( UMRA ) has identified and published a list of 59 online applications that are operating illegally by offering loans in Uganda. UMRA, mandated by the Tier 4 Microfinance Institutions and Money Lenders Act of 2016, is responsible for overseeing and regulating Tier 4 microfinance institutions and money lenders in the country.

UMRA has expressed alarm at the increasing number of entities providing online credit services through mobile apps and social media platforms without proper authorization.

These actions violate the Tier 4 Microfinance Institutions and Money Lenders Act of 2016 as well as the Tier 4 Microfinance and Digital Lending Guidelines 2024.

The unauthorized entities have been using digital channels to attract borrowers, disregarding consumer protection standards and jeopardizing the privacy of consumer data.

In a statement, UMRA emphasized that the activities of these unapproved entities not only fail to comply with UMRA’s consumer protection requirements but also infringe upon consumer data privacy.

List of prohibited online loan applications

The public has been urged to exercise caution and refrain from engaging with unauthorized loan providers.

UMRA has encouraged individuals to report any instances of non-compliance by reaching out through toll-free phone numbers, email addresses, or by visiting UMRA’s physical offices.

UMRA has specifically named and shamed the illegal online loan apps operating in Uganda, including Flypesa, Banana App, Loango, Nile Credit, and many others.

These apps have been flagged for operating without the necessary approvals and for potentially exploiting consumers through unauthorized lending activities.

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