Money lenders reject government's interest rate cap

The Association of Money Lenders has strongly rejected the recent government cap on interest rates, saying the policy was passed without their participation. They also called the rate cap selective in nature, given that some commercial banks are still lending above the average. Jonan Akwandwanaho, the chairperson of the association, stated that the government should have consulted the group to understand their plight before making the decision. According to officials, the group is made up of 1,800 lenders, of which 60,000 are operating informally.

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[TumwineProsper]

The concerns raised by the Association of Money Lenders highlight the critical importance of stakeholder engagement in policymaking. While the government's intention to cap interest rates might aim to protect borrowers, it's evident that the unique challenges of money lenders were overlooked. Informal lenders, who make up a large percentage of the sector, are particularly vulnerable to such policies without proper consultation. The selective application of the rate cap also raises questions about fairness and consistency. The government should revisit this policy and engage with all stakeholders to create a balanced framework that protects borrowers while ensuring lenders can sustainably operate. Inclusivity and dialogue are key to achieving long-term solutions

[erickokello]

You are talking of 7% per month, some of us have paid over 20% per month. There's need for a proper regulation of this

[salimnamajje]

So what, the cheaters are naked. You have to comply, because you have for so long taken advantage of poor people to enrich your selves by exorbitant and exploitative charges. Yes, people need money, but lenders must be regulated.

[mukimbabetty]

Capping to the maximum interest rate of 2.8% Can only work in banks or gov't funds but someones money can't, it's even abnormal interest, the gov't needs to do some editing on this issue. Instead they r just creating higher market for informal sectors, remember the gov't has not capped problems that leads people borrow money from money lenders, So if yo rejoicing, think twice and ask yourself why do some people borrow from money lenders not banks or wealth creation funds

[asisiferdinard]

Banks need to take advantage of this situation and see how to capture the informal market

[ahabwedaniel]

Money lenders also borrow from bank at high rates.

[ntungamounitedactors]

Money lenders are good people, they help Ugandans to solve emergencies, you cannot cap the interest of money lenders yet these people pay rent, license and employ the youth

[ijjoemma]

Government should reverse it's decision of interest rates

[wafiworld]

Cap them, if you have to borrow from the bank to lend then you're in the wrong business.

[grey_mantle]

You are extortionist, money lenders have to be regulated.

[gabygrande]

But who escorts you when you are going to the money lender..you go to them well aware of the risks involved, now owing to your sense of entitlement you want to be babysat so they can lend you on your own terms😂😂😂😂😂