Uganda - Register as a Money Lender

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Procedure

1. Any person wishing to be registered as a Money Lender in Uganda shall make a written application to Uganda Microfinance regulatory Authority (UMRA) and should provide the require documents.
2. The applicant must be accompanied by relevant documents and requirements as indicated below;
   • the name and address of the money lender. (CERETIFIED COPY, FORM 18).
   • the particulars of the directors and secretary of the money lender. (CERTIFIED COPY, FORM 20).
   • the date of issue of the money lending licence.
   • the date of renewal of the licence, if any.
   • the terms or conditions attached to a money lending licence, if any.
   • in case of revocation or suspension of the licence, the particulars of the revocation or suspension of the money lending licence, as the case may be; and
   • any alterations to the particulars of the money Lender.
   • Certificate of Incorporation. (CERTIFIED COPY).
   • Registered address
   • National Identity Cards for all the directors and company secretary.
   • Certificates of good conduct for all the directors.
   • Proof of payment of fees for application of the licence.
   • A copy of the interest rates according to the categories of loans products offered.
   • Memorandum and articles of association.(CERTIFIED,COPY CAN BE ATTACHED).
3. The application form can be downloaded from the Uganda Microfinance regulatory Authority (UMRA) website portal, please read through the instruction carefully and fill the application form accurately Application.
4. Fill a Form which should be duly completed and signed by at least two promoters. The names of the promoters should be printed in front of their signatures on the form. Promoters are the owners of the money lending Business.
5. Attach the proof of payment for registration fees.
6. If the Money Lender’s application has complied with the requirements for registration, the Uganda Microfinance Regulatory Authority within a period of three months shall issue a certificate of registration to the Applicant.
7. The certificate of registration shall be in a Form prescribed in the schedule and shall indicate the name, registration number and the date of registration of the organization.
8. A registration certificate issued expires on the thirty first day of December in every year and shall specify the name, under which the address at which, the money lender is authorized to carry on business; and shall not authorize a moneylender to carry on business under more than one name.
9. The Authority may refuse to issue a registration certificate for money lending where shareholders and persons responsible for the management of the company or firm are not of good character; or the applicant or any person responsible for the management of the company is convicted of an offence relating to embezzlement or any other financial impropriety and failing to comply with the requirements of the Act.

Note 1:The Act doesn’t define what good character of a money lending business manager means.This could turn out to be abused or even unenforceable due to the ambiguity it creates,as good character may be a subjective test.

Note 2:It should be noted that it is an offence for a person to carry on business as a moneylender without a money lending registration Certificate or in a name or at a place other than the name or address specified in the money-lending license.

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Required Documents

• the certificate of incorporation of the Company,
• the particulars of the directors of the Company;
• a resolution of the particulars of the secretary of the company;
• the postal and physical address of the company and
• Proof of the prescribed fees.

Office Locations & Contacts

Uganda Microfinance Regulatory Authority (UMRA)

Ruwenzori Towers Block B Ground Floor

P.O.Box x 11545, Kampala Uganda.

Plot 6 Nakasero Road

Tel: +256 417 799 700

Fax: + 256 414 230 163

Email:info@umrago.ug

Website:Uganda Microfinance regulatory Authority

Bank of Uganda

Plot 37/45 Kampala Road

P.O Box 7120, Kampala, Uganda

Tel: +256 414 258-441/6

Tel: +256 414 258 060/9

Tel: +256 417 302 000

Tel: +256 312 392 000

Fax: +256 41-4230878

Email: info@bou.or.ug

SWIFT:UGBA UG KA

Website:Bank of Uganda

Bank Of Uganda Branches.

• The bank has 9 branches situated in the following towns in the country:

Bank of Uganda.

Arua (Branch)

Location: Plot 27/29 Avenue Road (Inzikuru Road)

Address: P. O. Box 152 Arua

Tel: +256-476-420253

Bank of Uganda

Fort Portal (Branch)

Location: Plot 1 Kaboyo Road

Address: P.O. Box 562 Fort Portal

Tel: +256-483-422532

Bank Of Uganda

Gulu (Branch)

Location: Airfield Road

Address: P.O. Box 46 Gulu

Tel: +256-471-432330

Bank of Uganda

Jinja (Branch)

Location: Plot 3 Busoga Avenue/ Busoga Square

Address: P.O. Box 35 Jinja

Tel: +256-43-4121247

Bank Of Uganda

Kabale (Branch)

Location: Plot 137 Kabale Road

Address: P.O. Box 966 Kabale

Tel: +256-486-423595

Bank of Uganda

Masaka (Branch)

Location: Plot 41 Kampala Road

Address: P.O. Box 1567 Masaka

Tel: +256-481-421246/8

Bank of Uganda

Mbale (Branch)

Location: Plot 34-38 Cathedral Avenue

Address: P.O. Box 2402 Mbale

Tel: +256-454-433632

Bank of Uganda

Mbarara (Branch)

Location: Plot 2 High Street, Mbarara

Address: P.O. Box 1421 Mbarara

Tel: +256-485-420741

Bank of Uganda

Kampala (Branch)

Location: Plot 37/43 Kampala Road, Kampala

Address: P.O Box 7120, Kampala

Tel: +256-41-4258441/6

Bank of Uganda Lira

(Currency Technical Center)

Location: Plot 2, Obote Avenue

Address: P.O. Box, 211 Lira

Eligibility

• Money lender License shall not be granted unless the applicant has registered as a money lender with Uganda Microfinance Regulatory Authority and holds an eligibility Trading License certificate (hereinafter referred to as the certificate).
• A private company registered under the legal regime in Uganda can only carry out the business of money lending. This company must be a private company not involved in the business of banking or insurance, a society registered under the Cooperative Societies Act, or body incorporated or empowered by an Act of parliament to lend money like the Microfinance Support Centre.
• Any individual can secure a Money Lenders License from UMRA provided they register as a Company with the Uganda Registration bureau. This does not however bar an individual human being from lending money to any other person on a friendly basis.

Note: An individual human being in Uganda cannot engage in the business of lending money.

Fees

Registration fee: UGshs.500,000.

Validity

A registration issued under this Act is valid for one year and expire on 31 December every year.

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

Processing takes 3 months.

Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites. 	
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

A money lender must publish and disclose to the borrower in a clear and conspicuous manner prior to entering into the money lending agreement, the charges and transaction fees incurred under the lending transaction.

Required Information

• Name of applicant.
• Physical and postal address of head office.
• Date of incorporation.
• Form of incorporation
• Description of the applicants business or functions.
• Certificate of incorporation Number.
• Particulars of directors (Name, Nationality, Date of appointment, Level of education).

Need for the Document

Please provide the need for the procedure. e.g. Birth Certificate - why do we need to have a birth certificate? 
 

Information which might help

• There are over 1,000 money lenders in the Uganda according to the report from New vision.
• Currently,Bank of Uganda regulation and prudential supervision covers only Commercial banks,Micro deposit institutions,Credit Institutions,Forex bureaus and money remittance companies.
• Money lenders or loan sharks are not under the supervision of BOU, but under the Uganda Microfinance regulatory Authority.
• The Tier 4 Microfinance Institutions and Money Lenders Act 2016 was rightly enacted to provide in part for the management and Control of Money Lending Businesses.
• The Act repeals the Money Lenders Act Cap 273,which required moneylenders to apply for a Money Lending License from the Chief Magistrate’s court.
• The Act now creates the Uganda Microfinance Regulatory Authority under section 6(hereinafter referred to as‘the Authority’)as a body corporate with perpetual succession and a common seal with functions among others to regulate and supervise the money lending business in Uganda.
• The functions of the Authority with regard to regulating and supervising the money lending business include grant,renew and revoking of money lending licenses;keeping and maintaining a register of money lenders; sensitizing the public about the money lending business;conducting inspection and examination of books of accounts,records,returns, and other documents or premises of a money lending business; and conducting inquiry into the money lending business.
• A money lending contract shall be in writing and shall be signed by the money lender and the borrower and shall be witnessed by a third party.
• A money lender is required to issue receipts to the borrower immediately for every repayment made on a loan and to keep a record which shall contain the date on which the loan was disbursed, the amount of the principal loan,the rate of interest,the sum repaid on the loan and the date on which the repayment is made.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

• External Link 1

Others

More information which might help people.