What Is Lending Business?
A corporation engaged in granting loans from its own capital funds or from funds sourced from not more than nineteen 19 persons.
How To Start A Money Lending Business In Uganda?
Application for A Money Lending License
Certificate of Company Incorporation.
Forms of particulars of Directors and Secretary.
Registered Address of the Company.
National Identity Cards for Directors and Secretary.
Evidence of Payment of Application Fees (Receipt)
Plan your business.
Form a legal entity.
Register for taxes.
Open a business bank account & credit card.
Set up business accounting.
Obtain necessary permits and licenses.
Get business insurance.
Define your brand.
Is Money Lending A Profitable Business In Uganda?
Besides passing the test of time with flying colors, banks and other institutions that operate as lenders are some of the most profitable businesses in the world. Unfortunately, many people are borrowers, not lenders! So if you’ve got money to lend, congratulations, you can put it to good use.
What Are The Requirements For Money Lending Business In Uganda?
The company must be in the form of a corporation so it must register with the Securities and Exchange Commission (SEC). You will need a minimum of one million pesos paid-up capital. Besides the SEC, you also have to register with the barangay, City Hall, BIR, SSS, HMDF and Philhealth.
Is Money Lending Legal In Uganda?
An individual or Company incorporated in Uganda and carrying out money lending business can apply for a license. The entity seeking a money lending license from the Authority must be a legal entity with an established office. A licensee shall display the license at all the premises where money lending is transacted.
How Much Do Money Lenders Charge In Uganda?
Mandated rate as under the money lending Act provides that money lenders are to have an interest on any money lent out to be 24% per annum and not above it, this thus implies a month installment of 2%. This however has not been the practice of lender in Uganda as interest goes up to 30%.
Where Can I Register Money Lending Business In Uganda?
Address: P.O. Box 2402 Mbale. Tel: +256-454-433632. Bank of Uganda. Mbarara
Where Do Lenders Get Their Money In Uganda?
Mortgage lenders get their money from banks, also known as investors. Unlike banks and credit unions, most lenders do all their own loan processing, underwriting and closing functions “in-house.” They can take care of the entire process with internal staff.
Can I Lend Money Without A License In Uganda?
The act provides that money lending cannot be done without a license, and the government may, from time to time, specify the maximum rate of interest chargeable by money lenders for any local area.
Can A Private Person Lend Money With Interest In Uganda?
Yes, any person can make an interest free loan or loan on a subsidised rate to friends or relatives however, such loan should not be granted or recollected as cash . The transaction must be through a bank account in various ways such as payee cheque, electronic transfer, bank draft and so on.
Who Regulates Money Lenders In Uganda?
The Uganda Microfinance Regulatory Authority (UMRA), is a government agency responsible for the licensing, supervision and regulation of Tier-4 micro finance institutions, money lenders, savings cooperatives and any money-lending institution with capital of less that USh500 million.
How Does Money-Lending Work In Uganda?
The authority will a written notice of the deposit to be served on the moneylender, and require the money lender to appear before the authority and receive any monies deposited, and to reconcile accounts of the borrower to reflect the sum deposited as money duly paid.
What Is The Maximum Interest Rate For Money Lenders In Uganda?
Interest rates are generally determined by the market; however the Money lenders Act prohibits harsh and unconscionable interest rates. The Act prohibits interest rates that exceed 24% per annum.
What Is Money Lending Business In Uganda?
Unlike commercial banks that generally lend money from the funds they collects from their depositors, licensed moneylenders offer loans out of their own capital at a rate capped by the Moneylenders Act.