THE IMPACTS OF THE ENORMOUSLY EMERGING LOAN APPLICATIONS TO

UGANDANS
Key words; loan, application, impact of loans, reliability, and legibility of the sources of the
financial institution of the loan application, the Stanbic bank saga (money stolen)
Background
After the end of the covid 19 pandemic tragedy, most of the Ugandans and other people
elsewhere were financially affected as most of the income generating activities where
hindered by the pandemic. Other factors similar and inevitable included climate change
impacts and the rise of fuel prices globally. Before existed loan applications to support
agriculture farmers (Kenya application)
Abstract
In Uganda, most of IT experts in collaboration with the entrepreneurs commenced the
development of loan applications to Ugandans with allegedly affordable interest rates. This
started in late 2022 and has now dominated everywhere online as it was said to be
convenient, affordable and quickest with no collateral security. One needed only the NIN,
smart phone and registered sim card (besides, phone contacts of two close people were a
requirement) this was more confidential info. Unlike the formally known procedures of
acquiring a loan in Uganda, this increased the need for such quick loans by many Ugandans
thereby making the innovation prominent online and especially in Uganda.
However, the enormous emerging loan application seems more affordable but not an
economically sustainable approach to financially help the poor Ugandans. Below I came up
with various ways and reasons to justify the need to either regulate or prohibit these emerging
loan applications targeting the poor Ugandans.
 Reduces the saving capacity of Ugandans.
 Limits the investment levels of Ugandans.
 Encourages dependence of external financial assistance (undermines the national
objectives and directive principles of the state policy IX – The right to development
and IV (ii) avoid undue dependency)
 Limits the levels of creativity in Ugandans.
 Exacerbate Social vices like theft in local communities.
 Escalate fraudulent cases.
 Private Personal information disclosure
Conclusion
The idea of quick online loans as a way of facilitating Ugandans during financial demands
and emergencies is a great innovation. However, such financial dependence habits/ strategies
are not good for the young generation who are our future leaders, because (i) they may not
know how to use the debts to generate more wealth or even servicing that debt (ii) they get
influential interest in use of loans or financial assistance so solve their economics problems.
Recommendations
the government should liaise with IT entrepreneurs to adopt innovation of applications that
educate and disseminate free information to the people of Uganda could be of an excellent
value towards equal development in our country. For example, applications to inform the
public on ways of combatting climate change, efficient and sustainable harnessing of natural
resources around us, sensitization of the public about its constitution etc. adaptations of the
Parish Development Model (PDM).
The government should put stringent regulations on economic activities of any individual,
institution, organization or firm, especially the ones in subject of this matter (online quick
loans) so as to conform to our national objectives and direct principles of the state policy in
matters concerning development. Development in line with our constitutional agender and
integrity shall benefit Ugandans sustainably otherwise any form of activity done by Ugandans
and inconsistent with the constitution may in most cases be stake to our country.