The Uganda Microfinance Regulatory Authority (UMRA) has cautioned the public to desist from transacting with unauthorized loan providers.
This development was confirmed in a press statement released by UMRA on Thursday, August 15, 2024.
According to the statement, the authority has noted that the loan entities are providing services that contravene the Microfinance Institutions and Money Lenders Acts, 2016.
The authority stated that the entities mostly employ mobile applications and social media platforms to lure the public into borrowing from them.
“The activities of these unauthorized entities further amount to non-adherence with the customer protection requirements of UMRA and are an abuse of customer data privacy,” reads part of the statement.
UMRA also stated that the loan entities violate the recently issued Tier 4 Microfinance Institutions and Money Lenders Digital Lending Guidelines 2024.
Some of the apps mentioned by UMRA include Flypesa, Banana App, Loango, Nile, Gloan App, Boom Loan, Mpacash, Cashpulse, Credit Lab, Floweloan, Wind-money, Lever Credit, Cashmate, Ezee Loan, Kasente, Sunlit, Wind Money, Cashflow, Moji, Ozzy Money, Mumu Money, Kasquick, More Pesa, Muno, My Loan, Real Cash, Star Loan, and Get Cash.
The warning stems from the rising number of entities that are engaged in the provision of online credit and loans through several applications to the public.
UMRA was established by the Tier 4 Microfinance Institutions and Money Lenders Act 2016, with the mandate to license, regulate, and supervise Tier 4 Microfinance Institutions and Money Lenders in Uganda.
