KABALE MONEY LENDERS ON SPOT FOR WITHHOLDING BORROWERS’ LOAN AGREEMENTS

By Ambrose Kweronda
www.mknewslinl.com
In Kabale—-
Kabale District Deputy Resident District Commissioner (D/RDC), Michael Muramira Kyakashari, has warned money lenders against withholding loan agreements from borrowers, saying both parties should be given copies to prevent disputes over loan terms.
Muramira made the remarks today while speaking during the ENDEBERWAMU programme on Diocese of Kigezi Voice of Victory Revival Radio in Northern division Kabale municipality
He said many money lenders allegedly keep all copies of loan agreements after disbursing money to borrowers, leaving debtors without documentation to prove the terms and conditions they agreed upon. He warned that this practice often leads to misunderstandings and disputes when borrowers are required to repay the loans.
Muramira urged members of the public to carefully read and understand loan agreements before signing them. He also advised borrowers to seek the assistance of a trusted surety who can witness the agreement and help defend their interests in case of a dispute with the lender.
He further cautioned borrowers against signing documents without fully understanding their contents, noting that some lenders may later introduce terms or conditions that were not part of the original agreement.
According to Muramira, some money lenders have also been taking advantage of borrowers who lack reliable sureties, sometimes demanding land and other valuable assets that were presented as security for the loans.
He revealed that the office of the Resident District Commissioner receives about 30 complaints every week from debtors seeking intervention in disputes involving money lenders.
Muramira warned money lenders operating without proper registration or recognized offices to comply with the law, saying those found operating illegally will face arrest and other legal action.
He called on the public to report suspected illegal money-lending practices to the relevant authorities and urged both lenders and borrowers to ensure that all loan transactions are properly documented to avoid unnecessary disputes.