In the current financial situation, it is very hard for most Ugandans to cope up without having to acquire loans.
Almost on a daily basis, Newspapers are awash with properties being sold off by banks due to the owners defaulting or rather failing to pay off their loans.
The financial situation for many Ugandans is so dire that some shrewd businessmen and businesswomen have used it to their advantage to cash in and in the process, they have manipulated Ugandans leaving them poorer than they found them.
These shrewd businesspeople provide easy soft loan ranging from as little as Sh30,000 to as much as Sh2,000,000.
Through loan apps, the consumers simply register with their details which includes their National Identification Number (NIN), their location (address), contacts of their closest people among others.
Through Terms and Conditions (TCs), the apps are monitor the clients’s text messages, phone book, WhatsApp messages among others.
The apps charge exorbitant interest rates simply because they do not ask for collateral and give a very short (normally 7 days) to pay back the money.
Moses Kirunda Mukisa, who has about 12 loan apps in his phone said that when you request a loan of Sh80,000 you actually receive Sh57,000 but you have to pay back Sh80,000 in 7 days.
He added that immediately you go to the 8th day without paying the full Sh80,000; you incur an interest of Sh3,600 on a daily until you pay the entire amount, principle and interests.
“I almost lost my land in Mukono, I borrowed Sh1,000,000 but somehow I delayed to pay and these people were charging me Sh36,000 per day! In just 3 weeks, I had incurred an interest of more than Sh750,000,” said Mukisa.
Mukisa said that it took him 4 months to clear the loan which had swollen from Sh1m to over Sh5m!
He however said that to grow to the point where he would borrow Sh1m, he was paying well and acknowledged that the swiftness of the loan apps is what makes people to embrace them.
“The Loan apps are very swift and fast unlike the Bank loans which require a lot of paperwork and stuff; however, to manage these loans u have to be sharp especially by paying back on time,” he explained.
According to our survey, almost 6 out of every smartphone user in the country has a loan app in their phone and 3 out of 10 Ugandans have ever applied for the loan through these app.
However, Mr Ezekiel Kyangwa, a private financial expert notes that the Government must move in swiftly to put an end to these apps to save Ugandans.
“Ignorance is a cancer and the majority of Ugandans suffer from this particular cancer, the Government must save Ugandans otherwise they are going to be impoverished through these rubbish loan apps which are impoverishing many,” said Kyangwa.
Below are some of the Loan apps which provides loans to many
Dove Cash, Mara Instant Loan, Quicksente, OKloan, iSente, Mangu Cash, Quick Loan, Kasente Instant, Mobile Loan, Cash Base, Sunlit Loan, Fair credit, Cash X, Fly Pesa, Fido, Kashbus, Ucredit, Cash arrow, Numida, Yo cash, Boom loan, CashPulse, Flower loan, ikash, Ozzy money, Azima instant loan, Calf for you, Kwik Kredit, Ukash, Moji-online cash, Touch Loan, SenteHub, GetLoan, AideMoney, CashNow, among others.
A source from Bank of Uganda intimated that these apps (businesses) belong to ‘big people in government’ who include Ministers and people in Security circles.
