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How to Apply for a Certificate to operate a Village Saving and Loans Association (Village Bank, VSLAs)

Village banking is a micro credit methodology whereby financial services are administered by locally rather than centralized in a formal bank. A certificate issued under this institution is valid for one year and expire on 31 December every year. How to Apply for a Certificate to operate a Village Saving and Loans Association (Village Bank, VSLAs)

  • A group of self-support members who are willing to encourage active individual savings for group members and provide efficiency gains via an attractive lending offer to the groups.
  • The group who is willing to avail themselves of working capital for loans and willing to save, engage in skill training are eligible.
  • NGO registration fees: Ugshs.200,000
  • District registration fees UGshs. 20,000
  • The village banking program provides an opportunity to members to access small loans at a very low interest rate which they use to start or improve their small businesses.
  • Members are solely responsible for the management of the bank and provide mobilization and supervision for smooth operation.
  • Members buy shares which are turned constitute a pool of funds from which everyone accesses credit.
  • With the Central Bank of Uganda’s approval of the new agent banking regulation, the groups are becoming potential agents, multiplying commercial banks customer acquisition points for serving the mass market and generating additional income for the groups and their members with a particular focus on youth and women.
  • UMRA is expected to promote a sound and sustainable non-banking financial institution’s sector (savings and credit cooperatives, village saving and loan associations, non-deposit taking micro finance institutions and moneylenders) to enhance financial inclusion, financial stability, and financial consumer protection among the lower income population in Uganda.

Here is How to Apply for a Certificate to operate a Village Saving and Loans Association (Village Bank, VSLAs)

  1. Village banks are registered as non- government organisation or as associations with the district or commercial officer.
  2. The process of registering a Village bank or a Village association is clear and straight forward. It involves the group visiting a district commercial officer.
  3. The District commercial officer will issue out a form to the group members to fill their names and sign against the names.
  4. After verifying the names with their National identification card and satisfied with all the requirements, the district officer will grant the group a certificate of operation.
  5. The registered group can now chose to open up a group bank account with any bank and start operations.
    • The process of registering a village bank as Non –governmental organisation is a long winded process, which involves the following:
      • Name reservation of the village bank at the registrar of Companies.
      • Getting recommendation letters from LC1,LC2,LC3 RDC, Line ministry in this case Ministry of internal Affairs, Law firm, one already operating NGO, District NGO supervisory committee and individuals.
      • submit the above together with application letter for registration, constitution, one year plan of operation, report of operation(if already operation) Budget, organizational structure, source of funding and membership minutes to register the NGO village bank, in three copies of file.
      • Submit all the above requirements to NGO Bureau Board for further processing.
      • The NGO Bureau Board meets once every month, will approve (mostly, very few rejections) the operations.

It is good to use a professional person, as the process can be long winded. The entire process can take up to 3 months.

Required Documents

  1. Covering letter addressed to the Executive Director National Bureau for NGOs;
  2. Registered constitution or memorandum and articles of association, organization chart for NGOs;
  3. Certificate of incorporation valid permit to operate as an NGO from the NGO Bureau;
  4. Photocopy of contract/ agreement;
  5. Certificate of good conduct ie from LC 1;
  6. List of group members ( village group)
  7. National Identification card for (Village Group)

Office Locations & Contacts

Uganda Microfinance Regulatory Authority – HEAD OFFICE,
Physical Address: Rwenzori Towers, Block B
Ground Floor, Plot 6 Nakasero Road
Postal Address: P.O Box 11545
Kampala , Uganda
Call: 256 417 799 700
Toll – free: 0800 111 449
Email Us: /
Website: LInk

Uganda Registration Services Bureau – Head Office,
Uganda Business Facilitation Centre
Plot 1 Baskerville Avenue,
Toll Free: 0800 100 006
Call Center: +256 417 338 100
Phone: +256 414 233 219 / 0417338000
Fax: +256 414 250 712
Email: (General Correspondences)
Email: (For Enquiries)

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