Collateral foreclosure and microfinance institutions a critical analysis of the law and practice in Uganda
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Date
2010-07
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Kampala International University.College of Law
Abstract
This study "Collateral Foreclosure and Microfinance Institutions, A Critical Analysis of
the Law and Practice in Uganda" was carried out with specific aims of investigating
the legal protection of interests of both MFis and benefiting targeted clients exploring
the knowledgeability of the clients and MFis administrators about laws, polices and
regulations governing credit financial services, comparing the common law doctrine of
foreclosure and the present day practice on foreclosure and determining the legal
consequences of collateral foreclosure.
It was established in the study that, Micro finance is the provision of banking service
for the individuals engaged in small businesses and those with small needs, largely in
the informal sector (initially referred to as the poor). In Uganda, there are over 500
microfinance institutions operating all over the country and major players in the market
include FINCA, commercial microfinance limited, Uganda finance trust limited,
Opportunity Uganda, and pride microfinance Uganda limited. Over the past 20 years
the sector has been revolutionalised as dozens of micro finance institution (MFis) have
emerged and some have demonstrated the feasibility of delivery of such services on a
funereally sustainable basis (especially the major players). After the enactment of the
MDI Act 2003, many have applied to the central bank for license to start taldng
deposits.
Microfinance differs in crucial aspects from commercial banking and other business
with which the readers may be familiar. This is principally because of the way most of
them started and the unique lending methodologies. Most of them start off with the
objective of improving the economic and social setting of the poor and therefore
depend on donor funds for survival. Notably is that though there are thousands of MFis
words over, not all of them are not self sustaining, few have achieved financial
sustainability, but many hope to their motivation is still primarily social and economics
of the poor, but they believe that attaining profit ability will allow them to expand their
reach far beyond the limited donor or government funding that is available for their
operations.
Description
Dissertation submitted to the Faculty of Law in partial fulfillment of the requirements for the a ward of a bachelors of Laws of Kampala International University
Keywords
Collateral, Foreclosure, Microfinance, Institutions