NIRA warns against using national ID cards as loan collateral

by News Editor

The National Identification and Registration Authority NIRA has issued a stern warning and a reminder to all National ID cardholders regarding the ownership and use of these vital government-issued documents.

Underlining the importance of adhering to the law, NIRA has urged citizens to refrain from using their National Identification Cards as security when obtaining loans.

NIRA’s emphasis on this matter is grounded in Section 69 of the Registration of Persons Act, 2015, which states that an issued National Identification Card remains the property of the government of Uganda. As such, these cards should not be pledged or used as collateral for any financial transactions, particularly loans.

This notice serves as a firm response to the alarming and illegal practice that has been observed among money lenders who retain National Identification Cards as security for loans extended to individuals.

Such actions not only contravene the law but also violate the rights of cardholders, jeopardizing their personal information and identity. To address this issue effectively, NIRA has called upon money lenders engaging in this practice to cease immediately and adhere to the established legal framework.

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