[UAH] Financial institutions should not take advantage of borrowers

One of the set conditions by all banks and financial institutions to potential borrowers is to have a financial card. In order to allow commercial banks to assess their customers risk profile and develop risk management schemes, Bank of Uganda established the Credit Reference Bureau (CRB).

In distress and anxiety, all borrowers go ahead to have their data and information captured to have the financial cards in order to access the credit facilities in the banks. At the point of securing the loans, many of the borrowers do not read the terms and conditions set in the acquisition of these loans , many are illiterate and desperate to have the loans to sort out the challenges facing them at the time.

In such situations, banks have been able to change their lending rates at will which does affect the financial flows and payment plans of the borrowers hence leading to property attachments, multiple borrowing in order to settle pressing debts and in the end businesses collapse.

Borrowers are stakeholders in the banking industry and they need to know the legal instruments that make up the CRB, the functioning and the general role of the CRB other than protecting the interests of the banks over their clients.

Situations are on record were collateral securities of borrowers like land titles, car log books go missing in banks and at the time of settling the debt the borrower cannot have the collateral securities back from the bank in time.

The CRB should have the desk of public relations developed so that its relevance and role is known in the banking industry.

Percy Mulamba,


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"War is nothing but a  continuation of political intercourse, with a mixture of other means. Man will never be free until the last king is strangled with the entrails of the last priest."