Ibanda Borrowers Accuse Money Lenders of Land Grabbing

What the report says

Residents in Ibanda Municipality, western Uganda, are accusing some money lenders of using loan paperwork and land sale documents to take ownership of borrowers’ property after repayments are delayed. The complaints, reported by Nile Post, have prompted renewed calls for tighter oversight of the money lending sector and better protection for people who put land up as security.

The article highlights two borrowers who say they are at risk of losing land over relatively small loans. One resident said a Shs3 million loan that was supposed to be repaid within three months became a land dispute after he fell behind by about one and a half months and later learned the property had allegedly been sold. Another borrower said she took a Shs500,000 loan at 20 percent monthly interest and was asked to sign a sale agreement before receiving the money, leaving her worried about her one-acre plot.

According to the report, residents believe some lenders are requiring sale agreements instead of clear loan contracts, then relying on those documents when borrowers default or delay. Local leaders say urgent cash needs and slow bank procedures often push people toward informal lenders. Legal practitioners cited in the article advised borrowers to read all documents carefully and insist on agreements that clearly state loan amounts, interest, repayment periods and collateral terms.

Ibanda Resident District Commissioner Godfrey Mbetegyereize said such disputes are hard to settle once documents are signed, and he urged residents to examine terms closely before pledging land. The issue matters because it raises broader concerns about consumer protection, land security and the regulation of private lending practices.