In many cases when the topic of credit reporting is discussed, the focus will fall on the benefits that it unleashes for the credit provider and the economy. Minimising business risk, increasing profits…the list can be endless.

What about the borrowers? Why is it so important for Ugandans to have a credit record?

In Uganda credit reporting will be a cost-effective opportunity to help borrowers graduate to safe mainstream financing, lower interest rates and move toward a life of asset building and financial self-sufficiency.

Reporting is also a right and a responsibility to Ugandans. Borrowers are entitled to a good credit score and credit options. Reporting their repayment behavior is the best way to help them. By reporting loan repayments credit providers can help them access future credit.

How will a good credit score help borrowers?

In Uganda’s economy, access to financial services will soon be increasingly determined by an individual’s credit score. A good credit score will define whether an individual is bankable or not.

The improved credit scores will also give low-income borrowers the following:

1. better access to mainstream financing
2. more competitive interest rates
3. safer products
4. less vulnerability to predatory lenders

Ugandans with a good credit score will pay less in interest throughout their working lives than those without. This leads to savings that could go towards building assets.

The impact of a good credit score on financial well-being goes beyond access to credit and debt. Credit not only helps families buy a home, a business, or an education, but impacts opportunities for rental housing, transportation, employment, and access to checking, savings, and investment accounts.

If I credit report, will my borrowers be more vulnerable to predatory credit offers?

Reporting credit does mean that borrowers who build a good credit score will likely receive more offers for credit. For many this will be a welcome opportunity to access safer and lower cost credit alternatives than they had before.

As a micro finance lender it is your mission to not only increase financing options available to your clients but also to educate your lenders to better understand their credit options and have the financial management skills to make good financing decisions.

Reporting credit data is a powerful tool to lead Uganda to a stronger economy and a better future.

If you should need more information on credit reporting in Uganda, please contact us at Tel: +256 414 347 563 or e-mail us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it