Money lending apps in Uganda are taking advantage of borrowers in need of emergency funding to exploit them and lend the money at exorbitant interest rates, which is paid in a very short period.
A number of victims who have talked to the Eagle online say the operators of these apps operate virtually and do not fulfil the promised lending regulations, especially lending periods.
“They operate the way they want and lend money at insanely high interest rates. It’s so unfortunate that Ugandans have been left be preyed on by these thugs,” David Okello who has borrowed from one of the apps.
Okello says that some apps give borrowers eight days to pay the borrowed money back but they start sending threatening messages two or three days before the deadline.
“For example if you borrow Shs410,000, the money received will be Shs310, 000. That means the interest is Shs100,000 and you are expected to pay this money within eight days,”
But Okello says that these Moneylending apps start sending threatening messages on the fifth or sixth day and they expect the borrowers to pay on the seventh day.
The borrowers are complaining about apps like ; ManguCash, Mara, LoanGo, QuickSente, OKLoan, FairCredit, Cashbase, Dovecash, Isente, CashX and others.
Mr JM who wants to be named by his initials says he has received abusive and threatening messages from ManguCash, OkLoan, Mara even when the agreed time of payment had not elapsed.
He says he has been compiling all these threatening messages to show the dates when he receives them in correlation with the deadlines of payment.
He says some apps promise to extend the payment period to two or three weeks but they never fulfil their promises.
He showed one of the threatening messages sent to him by one Christine Akuyo from OkLoan and yet the deadline for payment had not elapsed.
“The government should really intervene and cause an investigation and expose these selfish people,” he said.
Some of these apps are regulated by the Uganda Microfinance Regulatory Authority but the borrowers say these money lending apps need more regulation.
The Telecom companies like Airtel and MTN are paid a fee when financial transactions are being made. “I’m told these telecom companies can’t do much because they also get money,” Simon Serugo, another digital borrower said.
Another issue the borrowers are raising is about the safety of their personal information given to these apps when borrowing.
