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Ntungamo Leaders Concerned Over Unlicensed Money Lenders :: Uganda Radionetwork
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Ntungamo Leaders Concerned Over Unlicensed Money Lenders

The Money lenders reportedly make their clients to sign sale of land agreements upon receiving small amounts of money and at times refuse to receive the refunds and instead target the property used as collateral.

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Authorities in Ntungamo district are concerned about the presence of unlicensed money lenders whom they accuse of exploiting locals.

The Money lenders reportedly make their clients sign sale of land agreements upon receiving small amounts of money, and at times refuse to receive the refunds and instead targeting the property used as collateral.

Denis Singahache, the Ntungamo district chairperson advises locals to use savings and credit cooperatives saying that they have clear modes of operation and not like the private money lenders who want to cheat them.

He says that signing sale agreements with the money lenders is very dangerous and should be discouraged especially by the local leaders who have been endorsing them.

Ntungamo resident district commissioner, George Bakunda says that the money lenders have always taken advantage of the unsuspecting members of the public and end up cheating them.

Bakunda says that his office receives an average of five people with complaints against the money lenders. He says the biggest challenge has been sorting their problems since the complainants will have signed sale agreements which are also witnessed by the local leaders.

Alex Bamukunda, a resident of Nyakyera town council says that the money lenders have always taken advantage of people in urgent need for money and end making them sign sale agreements instead of the real agreements indicating the amount borrowed.

Bamukunda says that he lost a piece of land after borrowing 2.5 million shillings to cater for his wife's treatment yet the land was valued at approximately 15 million. He says that the money lender decided to switch off his phone when he wanted to pay off the loan and instead decided to take possession of his land.

Uganda Microfinance Regulatory Authority Executive director Elly Biliku says that the Authority act against unlicensed money lenders since they are operating illegally and also engaging in unscrupulous activities.He advises all those involved in money lending businesses to apply for licenses.

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Biliku further revealed that locals must also resist from being made to sign sales agreements instead of the real loan agreements. He says that the law is very clear and money lenders must comply with the laid out procedures.

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