By 
The National Identification and Registration Authority (NIRA) in Uganda has issued a stern warning to both Ugandans and participants in the money lending sector, advising them to cease the practice of employing National Identity Cards as collateral for obtaining loans, as it is against the law.
NIRA has cautioned money lenders who have been retaining National Identification Cards as security for loans granted to individuals, emphasizing that this practice infringes upon the cardholders’ rights.
In an official statement, NIRA urged the public to report any individuals who have withheld their national identification card as loan security to the nearest NIRA office. National identification cards are crucial government-issued documents that serve as evidence of identity and citizenship.
In Uganda, a significant number of money lenders typically require loan applicants to present their original National Identity Cards and temporarily surrender them as collateral. These cards are returned once the loan is repaid.
NIRA’s statement underscores the importance of upholding the legality and integrity of national identification cards while safeguarding the rights and privacy of citizens.
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