The Mara Loan App, part of the shady world of illegal online loan apps mostly owned by Chinese crooks with Ugandan figureheads, has finally been taken down from the Google Play Store. But the fight against these predatory apps is far from over. There are still people wondering how they can help put an end to this scam. The answer is simple: report these fraudulent apps to Google Play Store, and the more reports, the better.
Bank of Uganda and Uganda Microfinance Regulatory Authority have both issued stern warnings and public notices, urging online loan apps to cease their unethical practices. These include making over a hundred threatening and abusive calls daily to phone contacts of borrowers, illegally obtained as none of these loan apps are registered in Uganda. The Central Bank also cautioned payment service providers against collaborating with illegal loan apps to process or distribute illicit loans.
More than a hundred illegal loan apps are preying on unsuspecting Ugandans, offering loans with exorbitant interest rates exceeding 50 percent per week. These apps operate without physical offices and exploit their Ugandan employees, paying them a pittance of about $100 or 400,000 Ugandan Shillings per month, according to insider reports. These workers are coerced into working up to 12 hours a day, relentlessly pushing loans onto borrowers.
One borrower shared his harrowing experience, revealing that after being harassed and publicly shamed on TikTok for failing to repay his loan within just 48 hours, his family was forced to scrape together the money to settle the debt. But no sooner had he cleared the debt than the loan app called him again, asking if he wanted to apply for another loan. This blatant exploitation and manipulation have left many Ugandans trapped in a vicious cycle of debt.
Bank of Uganda has finally taken a stand against this nefarious scheme after months of relentless online campaigning aimed at exposing the illegal operations of these Chinese-backed loan apps in the country. But the battle is far from won. It’s up to every Ugandan to remain vigilant, report suspicious apps, and protect themselves and their fellow citizens from falling victim to this predatory lending scheme.
