Borrowers and Lenders Act, 2014
An Act regulating credit agreements between borrowers and lenders in Sierra Leone, promoting responsible lending and the use of collateral.
Summary
The Borrowers and Lenders Act, 2014 provides a framework to govern the relationship between borrowers and lenders and to promote a sound credit market in Sierra Leone. It is aimed at improving access to credit while protecting borrowers through disclosure and fair-dealing requirements.
The Act regulates credit agreements, requires lenders to disclose the true cost of credit, and sets rules on interest, fees and the conduct of lenders. It provides for the registration of collateral and the enforcement of security interests, supporting the use of movable and immovable property as collateral and strengthening creditors' remedies on default.
Together with the Credit Reference Act it forms part of reforms to deepen the financial sector and widen access to finance.
Main provisions
- Regulates credit agreements between borrowers and lenders.
- Requires disclosure of the cost of credit and promotes responsible lending.
- Sets rules on interest, fees and the conduct of lenders.
- Provides for collateral and the enforcement of security interests on default.
- Supports a sounder credit market and wider access to finance.