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    Sacco Guidelines

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    tchalamovies
    The document provides guidelines for licensing SACCOs under Ugandan law. It outlines the application process and requirements, including being a registered cooperative, minimum capital levels, and governance structures. It details the supporting documents needed and the evaluation process, including premise inspections and director vetting. Upon approval, a letter of intent and license will be issued.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Sacco Guidelines

    Uploaded by

    tchalamovies
    30 views2 pages
    The document provides guidelines for licensing SACCOs under Ugandan law. It outlines the application process and requirements, including being a registered cooperative, minimum capital levels, and governance structures. It details the supporting documents needed and the evaluation process, including premise inspections and director vetting. Upon approval, a letter of intent and license will be issued.

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    Sacco

    Original Title

    Sacco Guidelines (1)

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    The document provides guidelines for licensing SACCOs under Ugandan law. It outlines the application process and requirements, including being a registered cooperative, minimum capital levels, and governance structures. It details the supporting documents needed and the evaluation process, including premise inspections and director vetting. Upon approval, a letter of intent and license will be issued.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views2 pages

    Sacco Guidelines

    Uploaded by

    tchalamovies
    The document provides guidelines for licensing SACCOs under Ugandan law. It outlines the application process and requirements, including being a registered cooperative, minimum capital levels, and governance structures. It details the supporting documents needed and the evaluation process, including premise inspections and director vetting. Upon approval, a letter of intent and license will be issued.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Uganda Microfinance

    Regulatory Authority (UMRA)


    Tel: +256417799700
    Rwenzori Towers,
    Website. www.umra.go.ug
    Plot 6 Nakasero Road
    Email [email protected]
    P.O.Box11545
    In any correspondence on
    Kampala – Uganda
    this subject please quote No
    UMRA/ADM/1/2020

    REPUBLIC OF
    UGANDA

    October 2020

    Guidelines for Licensing SACCOs under The Tier 4 Microfinance Institutions and Money
    Lenders Act 2016, and SACCO Regulations 2020

    1. Citation
    These Guidelines shall be cited as the Uganda Microfinance Regulatory Authority (UMRA) Guidelines
    for the licensing SACCOs under the Tier 4 Microfinance Institutions and Money Lenders Act 2016
    and the SACCO Regulation 2020
    2. Purpose
    These guidelines are to guide applicants in processing the requisite requirements to apply for SACCO
    license to offer the business of financial services. Specifically, the purpose of the Guidelines is to;
    a) Clearly show the process that applicants shall follow when applying for a SACCO License
    b) Explicitly lay out the detailed licensing requirements that must be submitted in support SACCO
    license application;
    c) Serve as a point of reference for potential applicants and other stakeholders;
    d) Streamline the licensing process by offering a reference point for UMRA staff during the licensing
    process; and
    e) Guide SACCO in meeting their compliance obligations.

    3. Application for a SACCO License


    An application for a SACCO license shall be made in duplicate in accordance with Form 1A specified
    in Schedule 1 of the SACCO Regulations, 2020 and submitted to Uganda Microfinance Regulatory
    Authority.
    4. SACCO Licensing Criteria
    The applicant for a SACCO license must fulfil the following criteria:
    a) Be a Cooperative Society registered under the Cooperative Society Act
    b) Have a minimum core capital of not less than 10% of total assets
    c) Have institutional capital of not more than UGX 500m and voluntary savings of not more than
    UGX 1.5bn

    Contact Tel: +256 417799700 Website. www.umra.go.ug E- mail [email protected]


    d) Have a fixed and identifiable place of business that is accessible and is suitable for the business
    of financial services;
    e) Have a management and governance structure. Have had at least an AGMs in the past two
    years and at least two board meeting in the previous year

    5. Documents Supporting the Application


    The application shall be supported by the following documents:
    a) Certified copy of certificate of registration issued under the Cooperative Societies Act
    b) Audited books of accounts
    o Evidence that the SACCO meets the minimum equity requirement, Institutional capital
    and Voluntary savings
    o Economic and financial environment of the SACCO
    c) A copy of SACCO Bylaws
    o Objectives of the SACCO
    o Prospective place of business
    d) Credit policy and procedure manual
    e) Copy of Business plan/ strategic plan
    f) Organizational and management structure
    g) A list of Membership and their shareholding
    h) Copy of identification cards of the directors and Senior management
    i) Receipt as evidence of payment of application for a license
    j) A filled ‘fit and proper’ questionnaire for Directors and Senior Management

    6. Evaluation of the application


    (a) After receipt of the application, UMRA shall evaluate the application and vet the directors and
    senior management.
    (b) Upon approval of directors and Senior management, UMRA shall conduct an independent premise
    inspection to ascertain SACCO readiness to offer the business of financial services.

    7. Letter of Intent to Issue a license


    Upon completion of an independent premise inspection, if UMRA is satisfied that the SACCO meets
    all the requirements to offer the business of financial services, a letter of intent to issue a license shall
    be issued advising for payment of license fees of Three hundred thousand Uganda shilling.

    8. Issuance of SACCO License


    Upon presentation of evidence of Payment, A SACCO License shall be issued.

    9. Validity of SACCO License


    A license shall, unless revoked, be valid up to 31st December of the year in which it is issued

    Contact Tel: +256 417799700 Website. www.umra.go.ug E- mail [email protected]

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