UDB urges Nakaseke entrepreneurs to apply for affordable loans.

The Uganda Development Bank (UDB) has encouraged small-scale entrepreneurs in Nakaseke to apply for its affordable and patient loans.

These loans are  an alternative to high-interest loans from commercial banks and money lenders. UDB, a government-owned institution with assets of 1.6 trillion shillings, offers accessible loans to support businesses.

In the 2024/25 financial year, the government plans to inject an additional 55 billion shillings into the bank.

Rosemary Namayanja Nsereko, Deputy Secretary General of the National Resistance Movement, pointed out that many business owners outside Kampala are unaware of UDB’s affordable loans and mistakenly believe the bank only serves large businesses.

To address this, Namayanja, along with Nakaseke’s Commercial Office, organized a meeting at Nakaseke Technical Institute in Butalangu town council, where UDB officials met with 150 small business owners to inform them about the loan options.

Namayanja shared her own experience of obtaining a loan from UDB with favorable terms, using a land agreement as collateral, which would have been more challenging at a commercial bank.

Eriah Were Funnah, Head of Special Programs at UDB, highlighted that the bank offers loans with a 12% annual interest rate for businesses in agriculture, manufacturing, tourism, and hospitality.

While some Nakaseke business owners have already benefitted, many remain unaware of the opportunity.

Steven Jojo, Vice Chairman of Nyaruzu Ngoma Investment SACCO, praised UDB’s loans for being more affordable and flexible compared to those from commercial banks and money lenders, who often charge 7% interest per week.

He noted that the SACCO plans to apply for 700 million shillings from UDB to invest in bull fattening and extend loans to its members.

Local maize dealer, David Kalwanga Kamya added that commercial banks charge high interest rates, typically over 18%, with no grace periods, making repayment difficult.

He welcomed UDB’s loans, which offer grace periods tailored to specific business needs, and plans to apply after restructuring his business.

Other business owners also expressed that the UDB loans would help address the challenges of bad loans that have caused many enterprises to collapse.

Additionally, government loan programs like the Emyooga Presidential Initiative and Parish Development Model also aim to support low-income earners.