Overview:
Recently, Ronald Egesa, a cyber forensics investigator and longtime activist, revealed that many Ugandans have become victims of the growing number of apps flooding the digital space. These apps offer loans with very high interest rates, and when borrowers fail to repay, they are subjected to harsh debt collection tactics.
The Uganda Microfinance Regulatory Authority (UMRA) has issued a list of online money lending applications (apps) that it says are operating illegally.
UMRA, which is mandated to license, regulate and supervise Tier 4 Microfinance Institutions and Money Lenders in Uganda, says the online credit/loans are operating in contravention of the Tier 4 Microfinance Institutions and Money Lenders Act, 2016 and the Tier 4 Microfinance and Digital lending guidelines 2024.
Some of the apps include; Flypesa, banana app, Loango, Nile, gloan app, Boom loan, Mpacash, Cashpulse, Credit lab, Flowerloan, Wind-money, Lever credit, Cashmate, Ezee loan, Kasente, Sunlit, Wind money, Cashflow, Moji, Ozzy money, Mumu money, Kasquick, More Pesa, Muno, My loan, Real Cash, Star Loan, Get Cash.
“These unauthorized entities mostly employ the use of mobile applications and social media platforms to lure the public into borrowing from them,” UMRA said in a statement.
“The activities of these unauthorised entities further amount to non-adherence with the Consumer Protection requirements of UMRA and are an abuse of consumer data privacy. They also violate the recently issued Tier 4 Microfinance Institutions and Money Lenders Digital lending guidelines 2024. The purpose of this public notice is therefore to caution the general public to desist from transacting with unauthorized loan providers,” it added.
Recently, Ronald Egesa, a cyber forensics investigator and longtime activist, revealed that many Ugandans have become victims of the growing number of apps flooding the digital space. These apps offer loans with very high interest rates, and when borrowers fail to repay, they are subjected to harsh debt collection tactics.
Egesa, the brains behind the campaign against the loan applications, highlighted the weaknesses within UMRA that enable the continued illegal operations of these loan applications in the country. He explained that his research led him to discover that only three loan applications licensed by the UMRA are harassing Ugandans by operating over 33 illegal applications.