Kampala | RedPepper Digital – Uganda Microfinance Regulatory Authority (UMRA) has warned the public against dealing with unregistered money lending institutions.
UMRA is an autonomous government agency that oversees non-banking financial institutions (savings and credit cooperatives, village saving and loan associations, non-deposit taking microfinance institutions and moneylenders).
Edith Namuga, UMRA Executive Director says the authority has noticed mushrooming illegal money lending institutions operating countrywide with intent to rip the public off their properties.
“It has 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 tier 4 of microfinance institutions and Moneylenders Act 2016 prohibits anyone from conducting money lending business without a license,” Namuga said on Monday while addressing members of the press at Uganda Media Centre in Kampala.
She cautioned the public to 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 Moneylenders Act 2016 is now effective. The authority has noted with concern the mushrooming unlicensed money lenders around the country conducting business in defiance of the sections under the tier 4 microfinance institutions and Moneylenders Act 2016 and accompanying regulations,” she added.
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According to Namuga, there are only 950 licensed microfinance and Money lending institutions authorized to transact money lending businesses in the country.
Namuga revealed that UMRA will soon spread its wings to upcountry areas like Arua, Mbarara, Jinja and Mbale to create awareness.