The National Identification and Registration Authority (NIRA) has issued a warning to Ugandans and those involved in the money lending sector, stating that it is illegal to use National Identity Cards as collateral for loans.

As stated in the NIRA Legal Alert Notice No. 1 of 2023, “NIRA would like to draw your attention to Section 69 of the Registration of Persons Act, 2015, which clearly states that an issued National Identification Card remains the property of the Government of Uganda.”

NIRA has cautioned lenders who have been utilizing National Identification Cards as collateral for loans issued to individuals to stop doing so since doing so is against the rights of cardholders.

A statement from the general public urges anyone who has maintained their national ID card as security or collateral to report them to the closest NIRA office. National identification cards are crucial official documents that must be produced to confirm one’s identity and citizenship, the statement claims.

The majority of financial institutions in the country require that individuals seeking for loans present and deposit original copies of their National Identity Cards, which they pick up after repaying the debt.
NIRA has warned lenders to stop using National Identification Cards as collateral for loans given to people since it is against their rights.

According to a public announcement, “Anyone who has kept their national ID card as security or collateral is urged to report them to the nearest NIRA office.” In order to confirm citizenship and identity, national identification cards are crucial documents issued by the government.