Venturing into a money lending business is a good profit-guarantee idea especially in this economic slow down where people need money for emergencies. You need to define your market if you want to be competitive. It will be best if you will be starting up under legal obligations and that’s by obtaining a money lending licence is critical.

The money lending business is one of the growing industries due to the fact that people are now being affected by the increasing need to address financial emergencies. Money lending businesses usually provides people the opportunity to gain emergency financial help within less time and at no hassle. If you think about starting your own money lending business but you fear that it will not work, then probably you are missing an opportunity to profit, start today.

The most common lending in Uganda is of quick loans starting from 100,000 UGX to 20,000,000 UGX issued upon providing security of sell-able items like computers and laptops, cars, motorcycles, land and more fast moving items. There is also lending for the big sums from 50m to billions. It is all same category and regulated and licenced the same.

Under the laws of the government of Uganda any one to do money lending business must first obtain a license and certificate from concerned authorities and this article addresses the step by step to get the above. Lets look at them .. The law, ‘Tier 4 Micro Finance Institutions and Money Lenders Act 2016”, that took effect on July last year is the law governing Money lenders, and is expected to put an end to ‘briefcase’ moneylenders (it is a great crime actually when caught operating illegally). This law also regulates Savings and credit Cooperative Societies (SACCOs), village SACCOs and self-help groups.

1. To operate a money lending business one must have or register a company for purposes of operating money lending business where one of the objectives should be money lending/financial services. (Contact NBK-Premier Solutions for company registration guide if you haven’t got one).
2. The directors of the company must be crime free and this is proved by only presenting certificates of good conduct which are processed by Interpol.
3. After arranging company documents and the directors’ details, and paying required amount, an application is filled and processed within 90 days as the law demands.
4. The body responsible for this is Uganda Micro finance Regulatory Authority . (Note that this a new board and system). After successfully getting the certificate, request and apply for a local trading license of your location and operate your business, make profits and make your country develop.

The process sounds complex but as NBK-Premier Solutions, (0704597816) that’s our work to take the hassle away from you and help you obtain your money lending certificate and license with ease. Contact us on 0704597816 today and go further. About Article Author: Nicholas Quest Katushabe is an Author, serial entrepreneur, trainer and consultant with NBK-Premier Solutions; a business management consulting firm in East Africa helping businesses and investments to maximize growth and profitable opportunities. Our Services: Company/business formation guide, Taxation and licensing guide, general business consultancy and more.

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