The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Bank of Uganda is considering capturing details of loan products obtained through the different mobile platforms into their Credit Reference Bureau-CRB.
The different Telecoms in Uganda have steadily been reinventing the services they offer to their clients; to the extent that many of them can offer loans through their respective mobile money platforms.
The CRB acts a reference point of all information regarding consumer credit services, individuals borrowing behaviours and it helps financial institutions to access borrowers’ ability to pay back loans.
Dr Louis Kasekende, the Bank of Uganda Deputy Governor, says that the Central Bank has not been monitoring loans transactions on mobile money platforms because the Telecoms had also not been given licenses to offer products to clients.
According to Kasekende, the CRB listing will enable them track the volume of money the Telecom companies are disbursing and the profits they are making.
He explains that the telecoms have been individually dealing with commercial banks to offer the loans and determining their interest rates, which undermines terms of operation licenses issued to them.
Reports from MTN Uganda indicate that by October 2018, the Telecom company had disbursed more at least Shillings 100 billion in Mobile money loans known as MTN-Mokash in a period of three years, through their partnership with Commercial Bank of Africa-CBA.
