How do I start a money lending business in Uganda?
A company wishing to undertake money lending business is required to apply for a licence from the Uganda Microfinance Regulatory Authority (UMRA) by submitting its incorporation documents, the particulars of its directors and secretary and paying the requisite fee.
How do I start a money lending business legally?
The following steps have to be followed to obtain a money lending license.
- 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.
- Step 4: Submission of the form.
How do I start a small lending business?
If you are going to start your own lending company, here are the steps to take:
- Comply with registration requirements.
- Know the current legal requirements.
- Study your target market.
- Hire the right employees.
- Learn how to screen and collect from clients.
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.
How do I advertise my money lending business?
Loan Companies: 8 Personal Loan Marketing Ideas
- Be Sure to Optimize Your Website for Mobile.
- Use Content Marketing to Provide Helpful Information.
- Monitor Your Online Reviews.
- Get Creative with Social Media Posts.
- Update Your Mailing Lists to Support Your Loan Advertisement Ideas.
- Email Marketing.
- Use Direct Mail.
What is the cheapest type of loan?
Personal loans typically have the lowest interest rates of any method of borrowing money, except for interest-free credit cards.
How to become a money lender in Uganda?
The Regulations provide for the licensing and operation of money lending business in Uganda. 1. Licensing of money lenders. A company wishing to undertake money lending business is required to apply for a licence from the Uganda Microfinance Regulatory Authority ( UMRA) by submitting its incorporation documents,
Is it possible to start a money lending business?
There are money lending firms that focus on the small market that offers money via check cashing, payday advance, loans, and other credit services. Remember if you are starting this kind of business, it would be best to start up small.
What are the regulations for a money lender?
In addition, money lenders are required to display interest rate charges at all times in a conspicuous place at their premises and maintain proper books of account, including a register of securities and debtors. This will enhance transparency in the business and promote confidence in money lenders.
Can a borrower deposit a sum with Umra?
The Regulations provide that a borrower may deposit any sum in repayment with UMRA in circumstances where the money lender refuses to accept such sum or where it is impracticable for the borrower to find the money lender in order to make the payment.
