Thu, 29 Sep 2016 09:26:50 +0000
AN online collateral registry which will enable small and medium enterprise’s (SMEs) to attract financial lenders to assist them with financial services has been created by the Patents and Companies Registration Agency (PACRA)
PACRA assistant registrar,commercial unit Christopher Mapani said once the online collateral registry was put in place, it would create a safe environment of security interest for both SMEs and financial services providers.
Mr Mapani explained the registry which was expected to be operational by October 6 would eliminate human intervention as individuals would be required to fill in forms online while providing detailed information on their collateral.
He was speaking at the on-going media training on economic and financial literacy organised by Financial Sector Deepening Zambia (FSDZ) and the Zambia Institute of Policy Analysis (ZIPAR) in Lusaka.
“What people will register online in that registry is basically moveable property including household property.
In terms of how the registry will operate, unlike companies filling in hard copies, forms will be completed online and this will have no any human interventions and will give the lenders an assurance of who they are dealing with,” he said.
Mr Mapani said the registry was an output of financial services aimed at developing the financial sector.
He said lenders would have access to the registry and check if collateral submitted and provided by individuals was not already pledged to other financial lenders.
Mr Mapani said the online system would be a 24 hours service and that individuals would acquire priority security interest in a particular property submitted.
“Those existing security interest will be migrated to the registry without companies or individuals paying anything. This will address how financial institutions get assurance once they searched in the registry with detailed description of collateral.
“The system will allow us to determine who registers first and get priority interest on their particular property because it is an issue of registers first,” he said.