Agricultural sector gifted lifeline through Post Bank with loan scheme
Recently post bank was named best financial institution in advancing Agricultural Financing in the country under the bank of Uganda facility program. Uganda Development Bank subsequently entered a strategic partnership with the government of Uganda’s wholly-owned Post Bank, availing up to UGX40 billion for onward lending to small, medium and large enterprises, at a preferential 13%.
The package is tailor-made for businesses in the production of essential goods and services for import replacement and export promotion in sectors such as primary agriculture, agro industrialization and manufacturing/industry. The product is aimed at boosting production for local, regional and international markets. The targeted UDB/PBU fund beneficiaries’ economic activities are in categories such as production of essential goods and services, import replacement and export promotion, medical equipment and products including machinery and ventilators and Personal Protective Equipment (PPE).
The funding of up to UGX. 2Bn addresses interventions like the acquisition of farm inputs, acquisition of mechanization equipment, purchase of agro-processing equipment needed to add value to the agriculture produce, purchase of machinery needed in the manufacturing process and construction of factory warehouses among others.
To date, the bank has issued up to UGX. 12 billion financing to over 50 eligible business owners and MSMEs. An additional UGX10 billion is in the pipeline, while about UGX20 billion is still available for borrowing.
Requirements for businesses to benefit from the package
- Open a PostBank account,
- Pprovide bank statements for the last 12 months from their current bankers and adequate security for the proposed borrowing.
- Other requirements will include business registration documents
- copy of the financial card
- Audited books for the last 3 years for loan deals above sh100M.
This package will include both financial and non-financial interventions with general loan terms of up to 10 years and interest rates as low as 13% per annum.
This package can be assessed from any PostBank branch across the country or through online application.