Reply to thread

Message

[QUOTE="Munyaradzi Mafaro, post: 40034, member: 636"]
Women business owners face major challenges when seeking bank loans because they must provide valuable property as security. Many female entrepreneurs cannot access traditional financing because they lack land titles, vehicles or other expensive assets that banks demand. Rural women especially struggle with these strict requirements that block their path to business growth.

Uganda launched the GROW project during 2023 to expand financial services for women entrepreneurs across the country. The Ministry of Gender, Labour and Social Development runs this program with Private Sector Foundation Uganda using World Bank money. Six commercial banks distribute these special loans to female business owners who meet basic requirements.

Banks like Centenary, DFCU, Equity, Stanbic, Finance Trust and Post Bank offer GROW financing at reduced rates. Women can borrow between 4 million and 200 million shillings at interest rates under 10 percent annually. Repayment periods stretch from six months up to two full years depending on loan size and borrower needs.

Minister Betty Amongi explains that banks still need some form of security because they carry the risk when borrowers cannot repay. The government lends money to banks at very low rates but recovery remains important since GROW funds must revolve to help more women. Basic collateral protects both lenders and the program from complete losses.
[/QUOTE]

Name