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Nakaseke, Uganda | THE INDEPENDENT | Uganda Development Bank has urged Small Scale Businessmen in Nakaseke to apply for cheap and patient loans to avoid risks associated with high interest rates.
Uganda Development Bank (UDB) a government fully owned bank has a formidable shs1.6 trillion bank in assets, providing patient and affordable loans. In 2024/25, the government will offer an additional 55 billion shillings to further capitalize the bank.
Rosemary Namayanja Nsereko the Deputy Secretary General of the National Resistance Movement said that despite the capitalization of the bank by the government, several businessmen, especially outside Kampala are not aware of the cheap and patient loans.
Namayanja said that others still think that the bank targets big entrepreneurs yet even small-scale enterprises can benefit from it.
As a result, Namayanja and Nakaseke District Commercial office invited UDB officials to meet 150 small businessmen in the district to sensitize them about the loans.
The meeting was held at Nakaseke Technical Institute in Butalangu town council.
Namayanja who is the director of Poultry, Beef Feedlot and Goat rearing farms narrated before businessmen how she acquired a loan from UDB on simple terms using a land agreement which could be difficult in a commercial bank.
Eriah Were Funnah the Head of the Special Program at Uganda Development Bank said they offer loans at only 12 interest per annum to businesses investing in the whole agriculture chain, manufacturers, tourism and hospitality among other sectors.
Were said that although some businessmen have acquired loans from UDB in Nakaseke, the majority were unaware of the opportunity and engagement was timely to encourage them to apply for it to accelerate their enterprises.
Steven Jojo the Vice Chairman of Nyaruzu Ngoma Investment SACCO welcomed the loan facilities by UDB saying they are cheaper and friendly compared to commercial banks as well as money lenders.
Jojo said that money lenders in Ngoma town council are lending to businessmen at 7% per week and once you fail, they can easily sell your collateral security.
He said that now with UDB scaling the loan facility to the district, the SACCO will apply for 700 million shillings to invest in bull fattening as well as also extend loans to members.
David Kalwanga Kamya a maize dealer in Semuto town council said that commercial banks offer loans at interest of 18% and above which is high.
Kamya added that in commercial banks, there is no grace period for repayment which affects business.
Kamya welcomed the UDB loans saying these offer grace periods based on the ventures and they intend to apply for them after reorganizing their businesses.
Other businessmen said that several enterprises have collapsed due to bad loans and the engagement was timely.
Other patient loans from the Central Government are the Emyooga Presidential Initiative and Parish Development Model which target Ugandans in low-income generating ventures.
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