By Felix Oketcho
Kampala: In a bid to extend faster financial services to Ugandans in dire need most especially during this pandemic season, South Africa based Unifi Microfinance Limited has officially launched its services in Ugandan.
Meanwhile, Vanessa Muhwezi, Manager Uganda Microfinance Regulatory Authority (UMRA) warned Ugandans against borrowing money from illegal money lending institutions citing fraud and favourable lending terms including interest rates.
“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 Money Lenders Act 2016, prohibits anyone from conducting money lending business without a license,” Muhwezi said.
She further cautioned the public to demand certificates of registration before engaging in money borrowing ventures with microfinance institutions.
”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 Money Lenders Act 2016 and accompanying regulations,” Muhwezi stressed.
Uganda Micro Finance Regulatory Authority (UMRA), Executive Director, Ms Edith Namuga noted that there are 950 licensed microfinance and money lending institutions authorized to transact businesses in Uganda.
Namuga advised the public to always inquire and understand the laws of borrowing before doing so to avoid inconveniences that lead some Ugandans to lose their properties to money lenders.
UMRAU is mandated by law to regulate, license and supervise all the tier IV microfinance and money lenders in Uganda.