Yes, money lenders in Uganda are regulated. Here’s a breakdown of the regulatory framework:
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The Tier 4 Microfinance Institutions and Money Lenders Act (2016): This is the primary law governing money lenders in Uganda. It established the Uganda Microfinance Regulatory Authority (UMRA) as the body responsible for licensing, supervising, and regulating money lenders.
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Uganda Microfinance Regulatory Authority (UMRA): UMRA’s key functions include:
- Licensing and registering money lenders
- Setting standards for the industry
- Monitoring the conduct of money lenders
- Protecting borrowers’ rights
- Resolving disputes between lenders and borrowers
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Requirements for Money Lenders: To operate legally in Uganda, money lenders must:
- Be registered as a company with the Uganda Registration Services Bureau (URSB).
- Obtain a license from UMRA.
- Comply with UMRA’s regulations, including fair lending practices and transparent disclosure of terms and fees.
How to Verify if a Money Lender is Regulated:
- Check the UMRA Website: UMRA maintains a public list of licensed money lenders on its official website (https://umra.go.ug/). Always verify that the lender you are considering is on this list.
- Contact UMRA directly: You can contact UMRA to confirm the regulatory status of a specific money lender.
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