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Welcome to the
Lesotho Registry of Interests in Movable Assets

This is the registry for searching for notices of security interests in movable property and for registering notices of security interests in movable property.

Question:

Who is the Registrar and Where is the Registry?

Answer:

In accordance with Section 31 of the Security Interest in Movable Property Act, 2020 the Commissioner of Financial Institutions has designated Mr. Mokotjo Mphaka as the Registrar of LERIMA. The Registry is hosted and administered by the Central Bank of Lesotho. However, the registry is fully electronic and accessible online at all times.

Question:

Can I pledge Farm products as collaterals?

Answer:

Yes! Farm products including crops (grown, growing or to be grown) poultry, livestock (and their unborn offspring), seeds, and other supplies used or produced during farming operations can be pledged.

Question:

Can wool and mohair be used as collateral?

Answer:

Yes! Wool and mohair (before and after shearing) and any other secondary products with value can be pledged as collateral and security notices on them can be filed on LERIMA.

Question:

Who can take a security interest in collateral?

Answer:

Under the Security Interests in Movable Property Act, 2020, all credit providers including banks, MFIs and other financial institutions, furniture shops, leasing companies, SACCOs and private institutions and individuals can take a security interest in collateral on a movable asset.

Question:

Can one asset be pledged several times to multiple lenders?

Answer:

Yes! One asset can be pledged several times to multiple lenders for as long as lenders have appetite depending on the underlying value of the asset. Section 7 of the Act provides for perfection of such security interests while section 10 provides for priority of claims in such circumstances.

Question:

What type of movable assets can be used as collateral?

Answer:

All movable property, both tangible and intangible, including construction and earth moving equipment, motor vehicles, machinery, crops, livestock, accounts receivable, intellectual property, fixtures, inventory and any movable property with underlying value. The only exclusion relates to the use of collateral or creation of security interests on basic consumer goods for the household.

Announcements

HOW DO I BENEFIT FROM THE REGISTRY?

I AM A LENDER

Bank

The use of movable assets as collateral for loans will curb the risk of default and reduce the risk of outright loss for Banks. This will lead to improved quality of loans and increased loan portfolio and profitability. It will also lead to reduced cost of collection and recovery. Since this type of lending is secured, capital requirements for Banks will also be lessened and this will make it easy to meet some capital requirements.

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MFI

The use of movable assets as collateral for loans will curb the risk of default and reduce the risk of outright loss for MFIs. This will lead to improved quality of loans and increased loan portfolio and profitability. It will also lead to reduced cost of collection and recovery.

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Lessors

The use of movable assets as collateral for loans will curb the risk of default and reduce the risk of outright loss for Leasing Companies. This will lead to improved quality of leases and increased leasing portfolio and profitability. It will also lead to reduced cost of collection and recovery.

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Other Lenders

The use of movable assets as collateral for loans will curb the risk of default and reduce the risk of outright loss for other lenders. This will lead to improved quality of loans and increased lending operations and hence profitability. It will also lead to reduced cost of collection and recovery.

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I AM A BORROWER

Business Entity

The use of movable assets will increase the likelihood of loan approval and hence increased access to finance for businesses, particularly MSMEs. It will also reduce risk to lenders and as such the risk premium charged on businesses will reduce, leading to lower interest rates and cost of credit in general. Ultimately it will also encourage acquisition of assets and lead to increased capital for businesses.

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Private Individual

The use of movable assets will increase the likelihood of loan approval and hence increased access to finance for individual households, particularly, those historically excluded. It will also reduce risk to lenders and as such the risk premium charged on individuals will reduce, leading to lower interest rates and cost of credit in general. Ultimately finance will go towards acquisition of productive assets leading to increased portfolio of assets for individual households.

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I AM A BUYER

Business

Any business buying any type of movable asset can make a public search on any seller to determine if the asset being sold has not been pledged elsewhere or if anyone has security interests on such an asset before buying. This will ensure that the buyer is protected against losses in case the asset being sold has been pledged elsewhere or that other lenders have security interests on the asset.

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Individual

Individual buyers of any type of movable asset can make a public search on any seller to determine if the asset being sold has not been pledged elsewhere or if anyone has security interests on such an asset before buying. And the seller may also file a notice if the buyer has not paid the amount for the asset in full reflecting the outstanding balance or any contractual obligations on the asset.

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Welcome to the Lesotho Registry of Interests in Movable Assets

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Announcements

HOW DO I BENEFIT FROM THE REGISTRY?

Welcome to the
Lesotho Registry of Interests in Movable Assets