How To Become A Money Lender In Uganda

Who Is A Money Lender?

To give for temporary use on condition that the same or its equivalent be returned. To let out (money) for temporary use on condition of repayment with interest. intransitive verb, to make a loan.

How To Become A Money Lender In Uganda

Uganda – Apply for Money Lending Licence

  1. a certificate of incorporation;
  2. forms of particulars of directors and secretary;
  3. particulars of the address;
  4. copies of national identity cards for directors and the secretary; and.
  5. Evidence of payment of the fees prescribed in schedule 1 to these Regulations.
  6. STEP 1: Plan your business.
  7. STEP 2: Form a legal entity.
  8. STEP 3: Register for taxes.
  9. STEP 4: Open a business bank account & credit card.
  10. STEP 5: Set up business accounting.
  11. STEP 6: Obtain necessary permits and licenses.
  12. STEP 7: Get business insurance.
  13. STEP 8: Define your brand.

How Do I Start A Lending Business In Uganda?

It`s best to start small. A company wishing to engage in money loans must apply for a license from the Uganda Microfinance Regulatory Authority (UMRA) by providing its incorporation documents, details of its directors and secretaries, and paying the required fees.

How Do I Become A Lender For Money In Uganda?

  1. Establish your business and obtain the required insurance.
  2. Meet with a lawyer to create your company structure.
  3. Identify your preferred lending focus.
  4. Join a peer to peer lending platform or network to find possible investments.

Do You Need A License To Be A Money Lender In Uganda?

It is mandatory for every money lender to have a license.

Is Money Lending Legal In Uganda?

The Moneylenders Act requires that, for one to carry on money lending business, he or she must obtain a certificate issued by a magistrate within the jurisdiction where the business is sought to be carried on.

Is Lending A Good Business In Uganda?

Excellent cash flow.

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.

Is Money Lending Profitable In Uganda?

While the role of moneylenders has reduced, they still continue to play a prominent role in the system. They continue to charge high rates of interest, which in turn leads to super normal profits. Money lending, hence has always been and will be one of the most lucrative business.

Is Hard Money Lending Profitable In Uganda?

In reality, becoming a hard money lender is not very complicated. With a little knowledge and some tips, you can easily earn 8% to 12% return or more on your cash without virtually any risk to you.

How Do I Register My Finance Company In Uganda?

Registration Process

  1. The first step is to obtain DSC and DIN.
  2. Than after apply for the proposed name approval to the ROC.
  3. After receiving approval, the next step is to apply for Central government license.
  4. The CG may grant approval on the satisfaction of an application.
  5. Apply for PAN and TAN, once the company is formed.

What Are The Requirements For Lending Company In Uganda?

Lending Companies must have a minimum paid-up capital of One Million UGX, unless otherwise prescribed by the SEC. Once granted a Certificate of Authority to operate as a Lending Company (see below), the company must commence operations within 120 days.

How Do I Start A Microfinance In Uganda?

  1. Certified copy of the Certificate of Incorporation.(certified Copy)
  2. Certified copy of the tax Personal Identification Number (PIN) certificate.
  3. Certified copy of the registered Memorandum and Articles of Association indicating core capital (at least UGshs 50 million)