Understanding how money lenders will cope with the interest rate cap
Last month, the government capped the interest rate on loans from microfinance institutions and money lenders to 2.8 percent per month and 33.6 percent per annum, following the passing of the Tier 4 Microfinance Institutions and Money Lenders Bill 2024. The law, according to the government, is to ensure that money lenders are guided in capping the interest rates they charge clients. In the studio, I am joined by Arnold Katongole, the Business Development Manager of Anekama Financial Services, a money-lending company, to talk about the prospects.
