how to get money lenders licence in uganda

What to know about Money lending business in Uganda

Key Points A money lending business should be a company registered with Uganda Registration Services Bureau (URSB) and licenced by Uganda Microfinance Regulatory Authority (UMRA) in accordance with the Tier 4 Microfinance Institutions and Moneylenders Act, 2016. In money-lending business, the moneylender should have a postal and physical address of the company (Form 18). A Money lender shall issue a receipt to a borrower for every repayment made on a loan and keep records for a period of 10 years. A moneylender should give a loan agreement to a borrower to sign not a sales agreement. A money lender shall not dispose off any collateral given by a debtor as a sale, pledge or collateral for the loan advanced to him, unless 60 days have passed since a written demand notice has been issued to the debtor requiring him or her to pay any outstanding monies on the Money advanced. A money lender may, before carrying out a sale of collateral by public auction or private treaty, undertake a valuation and obtain a forced sale value of the collateral to determine the market value of the property. A borrower shall retain the right to pay any outstanding monies and costs

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How to Obtain a Money Lending Licence in Uganda

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

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