Africa-Press – Uganda. Residents of Namutumba District, who acquired customary land titles from government, are excited to use them as security to access school fees and loans from banks.
At least 5,000 residents last week received free customary land titles from government as a way of reducing land grabbing and wrangles.
“I am going to use my land title as security to get a loan from Microfinance Support Centre and start a hardware shop in Busembatia Town Council,” Waiswa Kirya, 76, a resident of Kibale Sub-county, said at the weekend.
He added: “My dream [to own a hardware shop] has now come true because I have a land title as capital and very soon, I am going to reach out to bank managers for a loan.”
Mr Joseph Magola, a resident of Nabweyo Sub-county, said he would get a loan of Shs6m to start a mobile money shop in Kibale Trading Centre.
“I worked for a mobile money outlet and I know how much is earned per month. I will use profits from the mobile money business to repay the loan.”
Ms Loy Nangobi, a widow from Mpande Sub-county, said she would get a loan to further her daughter’s education. “By now, my daughter would have completed her degree in Business Administration but she is sitting at home. My initial plan was to sell part of the land, but I am happy that within a few months, I am going to process a school fees loan using my [land] title as security,” she said.
Lands ministry says
Mr Denis Obbo, the Ministry of Lands spokesperson, however, warned that titles are not collateral for loans but for securing one’s ownership rights and reducing land disputes.
“Much as they can be used as collateral in banks, the government wants people to have security of ownership which in turn will stimulate increased, productive use of the land,” he said.
He advised the beneficiaries to always comply with the conditions, restrictions and limitations set by the government, including remembering to update their certificates at the sub-county in case of any change.
The State Minister for Lands, Ms Persis Namuganza, advised beneficiaries to guard their titles against land grabbers and not rush for bank loans.
“Having a land title does not guarantee you multiple loans from moneylenders, but for security ownership,” she said.
The Namutumba Resident District Commissioner (RDC), Mr Thomas Matende, said: “I am afraid the beneficiaries are going to lose their land over failure to repay loans. We know you can get loans but do not get multiple loans which will make you lose land to the bank.”
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