The Uganda Microfinance Regulatory Authority (UMRA) has issued a stern warning to the public against engaging with unauthorized online loan providers operating in the country. UMRA, which was established under the Tier 4 Microfinance Institutions and Money Lenders Act, 2016, is responsible for licensing, regulating, and supervising Tier 4 Microfinance Institutions and money lenders in Uganda.
In a public notice released recently, UMRA expressed deep concern over the increasing number of entities offering online loans through various mobile applications, in violation of the Tier 4 Microfinance Institutions and Money Lenders Act, 2016, and the Tier 4 Microfinance and Digital Lending Guidelines of 2024.
These entities, which are not licensed by UMRA, have been found to be engaging in predatory lending practices that not only exploit consumers but also breach consumer data privacy laws.
UMRA has identified the following 59 unauthorized loan apps operating illegally in Uganda:
| Unauthorized Loan Apps | Unauthorized Loan Apps |
|---|---|
| 1) Flypesa | 31) GetLoan-Online Fast |
| 2) Banana App | 32) Fair Loans |
| 3) Loango | 33) SweetLoan-loan app |
| 4) Nile Loan, changed to Get | 34) Loan Cash-easy |
| 5) Gloan App | 35) Borrow Money-Get Online |
| 6) Boom Loan | 36) CashPe-instant Loan |
| 7) Mpacash | 37) Cash4You Mobile Loans |
| 8) Cashpulse | 38) Faircash |
| 9) Credit Lab | 39) Azima Instant Loan |
| 10) Flowerloan | 40) Quick Loan Easy Mobile Loan |
| 11) Wind Money | 41) Echo Loan |
| 12) Lever Credit | 42) Credit |
| 13) Cashmate | 43) Smart Quick Cash |
| 14) Ezee Loan | 44) Cash Lender – Mobile Loans |
| 15) Sunlit | 45) Omega Loans |
| 16) Wind Money | 46) Little Cash – Mobile Loans |
| 17) Cashflow | 47) Unity Loans |
| 18) Moji | 48) Happy Credit – Quick Loans |
| 19) Ozzy Money | 49) CashGo Mobile Loans |
| 20) Mumu Money | 50) CashNow |
| 21) Kasquick | 51) Mobi Loan |
| 22) More Pesa | 52) CashPe- Easy Loan |
| 23) Get Cash | 53) Rapid Mobile Loans |
| 24) QuickLoan: Reliable Online Loan | 54) Quick Cash Loans |
| 25) CashPulse | 55) Credit Sente Loans |
| 26) KashBus | 56) Muno |
| 27) YeLoan | 57) My Loan |
| 28) SenteHub | 58) Real Cash |
| 29) CreditLab | 59) Star Loan |
| 30) Echo Loan |
These unregulated lenders primarily use mobile applications and social media platforms to attract borrowers, often making it difficult for the public to differentiate between legitimate and illegitimate lenders.
UMRA noted that the activities of these unauthorized lenders are not only illegal but also pose significant risks to borrowers, including the potential for data breaches, unfair loan terms, and abusive debt collection practices.
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this is unacceptable at all. how can a Country operate this way?