![NIRA warns against using national IDs as security for loans](/storage/blog_image/idenity_1694617392.png)
Ugandans and participants in the money lending industry have been warned by the National Identification and Registration Authority (NIRA) to stop using National Identity Cards as security for loans since doing so is against the law.
The Legal Alert Notice No. 1 of 2023 from NIRA notes, "NIRA would like to draw your attention to Section 69 of the Registration of Persons Act, 2015, which clearly states that an issued National Identification Card remains the property of the Government of Uganda."
Due to the fact that doing so is against the rights of cardholders, NIRA has warned lenders who have been using National Identification Cards as collateral for loans made to individuals to stop doing so.
"Anyone who has kept their national ID card as security or collateral is urged to report them to the nearest NIRA office," reads a statement from the public. In order to prove one's identity and citizenship, national identification cards are essential government documents, according to the statement.