Consumers are urged to verify the registration status of any microlender before entering into an agreement.
Verification can be done through NAMFISA, which is the regulator of non-banking institutions and registers microlenders.
According to Victoria Raimond, NAMFISA spokesperson, consumers must verify the registration status of any microlender before engaging their services. She said borrowing from unregistered lenders can lead to high costs and limited legal recourse.
The Microlending Act is in place to protect consumers and promote responsible lending practices.
