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3 min read · 22 Jul 2026

What happens if I default on a moneylender loan?

Direct answer

Tier-4 money lenders operating legally under UMRA can attach agreed collateral through court bailiffs, but illegal interest rates above legal caps can be challenged in court under the Tier 4 Microfinance Act.

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## 5. Sourcing Goods, Importation & Wholesale

Practical tips

- Always ensure you understand the tier-4 requirements. - Keep detailed records, as mentioned: '---...' - Seek professional advice when in doubt about legal or financial matters.

Topics: Uganda · FAQ · Business · URA · Taxes

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