The directorate of lending activities at NBFIRA is charged with the implementation of provisions of the micro lending Regulations 2012 and the NBFIRA Act 2006 defined as Financial Services Law under NBFIRA.
- In a cash loan transaction, the borrower has the right to information pertaining to their loan(s) ie;
- The principal amount
- The total amount payable over repayment period
- The total cost of credit
- The repayment period
- The number of instalments and the amount of cash instalment
- Total monthly cost of credit rate - Type of interest (fixed or variable) - Nature and amount of insurance
- A loan is not a source of income, but a debt. Do not rely on cash loans/pawn shops for a living or as a way of supplementing your income. Avoid borrowing money to pay other debts and buy food and/or other necessities.
- Make informed decisions by shopping around and compare the interest rates as well as the terms and conditions provided by Micro Lenders.
- Signing of any financial contract is legally binding. If you cannot read, seek assistance. Ignorance is no excuse. NBFIRA advises that customers abide by existing contracts that are financial.
In accordance with section 14(1) of NBFIRA Micro Lending Regulations,2012: it is violation for any Micro Lender to:
- require disclosure of the borrowers personal identification number (PIN) used for a bank card: and or
- take possession of a borrower’s bankcard, national identity card (Omang) or any other official document.
Borrowing more than you can afford to repay can lead to severe financial difficulties.