How To Register Money Lending Business In Uganda

What Is Money Lending Business?

It’s a broad term that encapsulates many different kinds of transactions. Common lenders include financial institutions, such as banks and credit unions, that build a business model around lending money. The borrower pays a price for taking out the loan in the form of interest.

How To Register Money Lending Business In Uganda?

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 start a money lending business?

Build Your Lending Business Plan.
The Registration And Legal Requirements To open a Lending Business In Uganda.
Choose Your Location For The Lending Business.
Open A Business Bank For Your New Lending Company In Uganda.

How do I register a lender business?

How to Apply

Step 1: Visit the Tahsildar Office. The applicant has to visit the nearest Tahasildar office.
Step 2: Receive the application. The applicant has to pay a fee of Rs. …
Step 3: Enter the details. The applicant has to enter the required details in the application form.
Step 4: Submission of the form.

How do I get my lending license?

Procedure and Requirements for Obtaining a Money Lender’s License in Uganda

Application to the Magistrate Court.
Application to the Uganda Ministry of Home Affairs and Tourism (the” Ministry”)
Inspection of the Official Address of the Applicant.

Procedure To Register Money Lending Business In Uganda?

Any person wishing to lend money must acquire a Money Lending license from Uganda Microfinance regulatory Authority (UMRA) by submitting its incorporation documents, the particulars of its directors and secretary and paying the requisite fee.
The Applicant shall make an application by filling form 1 submit the same to Uganda Microfinance Regulatory Authority,attach all the required documents.An application shall be accompanied by the following requirements:—
- a certificate of incorporation;
- forms of particulars of directors and secretary;
- particulars of the address;
- copies of national identity cards for directors and the secretary; and
- Evidence of payment of the fees prescribed in schedule 1 to these Regulations.
The Applicant shall submit written application to the Uganda Microfinance Regulatory Authority requesting for a money lending Licence.
The Authority on receiving the application shall carry out a due diligence on the directors and other persons to be involved in the management of the business and shall—
- if satisfied that the directors and the management of the money lender are fit to carry on the business of money lending, issue a notice of no objection to the change in management and directors;
The Authority shall consider an application and inform the applicant of its decision within three months after the application has been lodged with it;except that where the Authority requests for more information,the period of three months shall be calculated from the time that the additional information is submitted to the Authority.
The Authority may,on an application duly made and after being furnished with all information as it may require,grant a license or reject the application.
In determining whether to grant a licence or reject an application the Authority may take into account the fitness and propriety of any person who is or will be employed by or associated with the applicant for the purposes of carrying on the money lending business.

Required Documents To Register Money Lending Business In Uganda?

a certificate of incorporation;
forms of particulars of directors and secretary;
particulars of the address;
copies of national identity cards for directors and the secretary; and
Evidence of payment of the fees prescribed.

Is lending a good business?

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?

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 money lending illegal?

Lending money without paperwork is fine, if the amount is low. But if the sum runs into six or seven figures, it is best to adhere to the rules that banks follow when lending out to customers. “In such cases, the exchange of money is usually based on mutual trust.

Is a lending company a corporation?

A lending company must be a stock corporation. Sole proprietorship and partnerships engaged in lending business are now illegal, after being given a one-year grace period to incorporate with the Securities and Exchange Commission.

How do I start an online lending business?

Step 1: Determine Your Business Model.
Step 2: Understand State and Federal Loan Laws.
Step 3: Write a Business Plan.
Step 4: Find Investors or Borrow Funds.
Step 5: Obtain Merchant Services.
Step 6: Set Up Your Site.
Step 7: Build Your Brand.
Step 8: Have a Contingency Plan.

What are the types of loans?

Types of secured loans

Home loan.
Loan against property (LAP)
Loans against insurance policies.
Gold loans.
Loans against mutual funds and shares.
Loans against fixed deposits.

Office Locations & Contacts To Register Money Lending Business In Uganda?

Uganda Microfinance Regulatory Authority (UMRA)
Ruwenzori Towers Block B Ground Floor
P.O.Box x 11545, Kampala Uganda.
Plot 6 Nakasero Road
Tel: +256 417 799 700
Fax: + 256 414 230 163
Email:info@umrago.ug
Website:Uganda Microfinance regulatory Authority