Ibanda Residents Cry Foul as Money Lenders Allegedly Seize Land Over Loans

A growing number of residents in Ibanda Municipality are raising serious concerns about the practices of some local money lenders, alleging that their land is being unfairly seized following delays in loan repayments. Borrowers claim that loan agreements, and sometimes even land sale documents, are being used by lenders to take possession of properties worth significant amounts, often in exchange for relatively small sums.

One such case involves Emmanuel Mubangizi, who borrowed Shs3 million with a three-month repayment plan. Despite facing financial hardships that led to a one-and-a-half-month delay, he was shocked to discover his land had already been sold when he finally had the funds to repay the loan. His efforts to seek intervention from the Ibanda Resident District Commissioner’s office have yet to yield a resolution.

Another borrower, Annet Nahabwe, reportedly borrowed Shs500,000 at a steep 20 percent monthly interest rate. She claims she was compelled to sign a sale agreement for her one-acre plot as security before receiving the funds, leaving her in constant fear of losing her property. Her case is also pending resolution after reporting it to the authorities.

Allegations suggest that some lenders intentionally present sale agreements instead of straightforward loan contracts, which are then used to claim ownership upon delayed payments. Local leaders acknowledge that the reliance on money lenders stems from urgent financial needs, as commercial banks may have slower processes.

Legal experts are advising borrowers to meticulously review and comprehend all documents before signing, especially when land is involved. They emphasize that signing a sale agreement can make challenging such transactions in court significantly more difficult. Clear loan agreements detailing amounts, interest, repayment periods, and collateral conditions are recommended.

The Ibanda Resident District Commissioner, Godfrey Mbetegyereize, has noted the difficulty in resolving such disputes once agreements are signed, urging residents to exercise extreme caution and fully understand terms before committing valuable property as security. The community is now advocating for enhanced oversight of the money lending sector to prevent further exploitation.

For more details, visit: https://nilepost.co.ug/news/370451/ibanda-borrowers-accuse-money-lenders-of-land-grabbing