Government names 59 illegal online loan apps to avoid

UMRA, established under the Tier 4 Microfinance Institutions and Money Lenders Act of 2016, is tasked with the licensing, regulation, and supervision of Tier 4 microfinance institutions and money lenders in Uganda.

Read: LIST: Bank of Uganda deputy governor reshuffles top executives

UMRA expressed concern over the rising number of entities offering online credit through mobile apps and social media platforms, in violation of both the Tier 4 Microfinance Institutions and Money Lenders Act of 2016 and the Tier 4 Microfinance and Digital Lending Guidelines 2024.

See: Bank of Uganda bans banknote gifts

These unauthorised entities have been using digital platforms to entice the public into borrowing, often neglecting consumer protection standards and compromising the privacy of consumer data.

The statement highlighted, “The activities of these unauthorised entities amount to non-compliance with UMRA’s consumer protection requirements and constitute an abuse of consumer data privacy.”

It further warned, “The purpose of this public notice is to caution the general public against engaging with unauthorised loan providers.”

UMRA urged the public to report any instances of non-compliance by contacting them through toll-free numbers 0800111449 or 0417799700.

Read: Bank of Uganda revokes Mercantile Credit Bank licence and orders liquidation

Complaints can also be emailed to info@umra.go.ug or complaints@umra.go.ug, or submitted via the UMRA website at www.umra.go.ug. Additionally, the public may visit UMRA’s offices at the Ground Floor of Rwenzori Towers Wing B on Nakasero Road.