NIRA: No Loans Using National IDs as Collateral!

Kampala, Uganda | THE BLACK EXAMINER | National Identification and Registration Authority (NIRA), has taken a firm stance against the improper use of National Identification Cards as collateral for loans. This move comes as a response to concerns about the potential misuse of these essential government-issued documents.

Section 69 of the Registration of Persons Act, 2015, was highlighted by NIRA in the alert, emphasizing that National Identification Cards are the property of the Government of Uganda. This means that individuals who possess these cards should not be using them as security when seeking loans.

In the letter dated 11th Septemeber 2023 NIRA made it clear that National ID cardholders should immediately cease the practice of using their cards as collateral for obtaining loans. Additionally, money lenders who have been accepting National Identification Cards as security for loans were sternly warned to halt these unlawful practices that infringe upon the rights of cardholders.

The misuse of National ID cards as collateral has raised serious concerns among authorities, as these cards are vital government-issued documents that serve as proof of identity and citizenship for Ugandan citizens. Improper use of these cards can lead to identity theft and other fraudulent activities, putting the security and privacy of cardholders at risk.

NIRA also called upon the public to be vigilant and report any individual or institution that retains National Identification Cards as security or collateral to the nearest NIRA office. This measure aims to ensure that cardholders’ rights are protected, and their National ID cards are not misused in any way.

The Directorate of Legal & Board Affairs at NIRA issued this legal alert on September 11, 2023, with the objective of safeguarding the integrity and purpose of National Identification Cards in Uganda. NIRA is determined to enforce the law and ensure that National ID cards are used exclusively for their intended purpose – as a means of confirming an individual’s identity and citizenship.

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