Using National Identification (ID) cards as security for acquisition of loans from money lenders is illegal, the National Identification and Registration Authority (NIRA) has said, adding that this is issued for proof of identity and citizenship.

The directorate of legal and board affairs at NIRA has also warned members of the public to desist from stating the National IDs in order to be given loans. Section 69 of the Registration of Persons Act, 2015, states that an issued National ID remains the property of the government.

“Money lenders who have been retaining National Identification Cards as security for loans issued out to individuals are also advised to stop such illegal practices that violate the rights of the cardholders,” said the directorate of legal affairs at NIRA.

NIRA has therefore encouraged the general public to report to any nearest NIRA office in case any person has retained their national identification cards.

NIRA has asked money lenders to converse themselves with regulatory dos and don’ts by the Uganda Microfinance Regulatory Authority.