Ministry of Finance has advised individuals and business entities dealing in money lending without a license from the Ministry to comply with the 14 day demand Notice failure to which stiff penalties will be instituted.
Ministry Spokesperson Chileshe Kandeta told Money FM News in an interview that the 496 individuals who have been listed by the Ministry did not pay money lenders licenses fee of K3, 000 in 2019, yet they were giving out small loans to people.
Mr. Kandeta stated that individuals wishing to give loans are required to get an affidavit from the court after which they are supposed to get a license from the Ministry of Finance.
He explained that the individuals who have been listed proceeded to start giving out loans without being licensed by the Ministry; a situation he says is against the law.
“Every individual that gives out loans, they go to the court and get an affidavit, after getting that they are supposed to get a license from us. Now some of them proceeded to start giving out loans without getting a license from the Ministry to start giving out small loans to people, that’s not correct,” Mr. Kandeta said.
Mr. Kandeta said the money lenders have been given only 14 days in which to ensure that the payment is made or risk being taken to court.
“So we are giving them that period in which to pay for the licenses, failure to which they will be taken to court. If you do not have a license, you risk being taken to court.”
“But in this case we have given them a 14 day period in which to pay and that license is K3, 000 per year. The entire period of 2019 they didn’t pay but they were giving out loans. So it’s up to them to comply within the 14 day period, if they don’t want we will take the next step,” he stated.
And Mr. Kandeta said if the Ministry discovers that there are people giving out loans in communities or places of work, it has to cross check if the money lenders have an affidavit from the court and a license for them to conduct such businesses.
“You can be giving out loans to people in your community or institution and if it’s discovered that you are doing that, we have to cross check if you have an affidavit from the court, and whether you have a license from the Ministry to do that,” Mr. Kandeta stated.
Last week, the Ministry of Finance issued a Demand Notice informing the public that according to records, as read with the Money Lenders Act,496 individuals and companies have been conducting money lending businesses without money lenders licenses issued by the Ministry.
The Money Lenders have been given 14 days from the date of issuance of the notice for them to immediately comply, as conducting money lending business without a license from the Ministry constitutes a breach and offenders are liable to prosecution in the courts of law.