Uganda Development Bank Limited (UDBL) has dedicated lines of credit at concessional terms that favour both large-scale commercial and smallholder farmers. Smallholder farmers are supported through organised farmer groups and Co-operatives. The unique feature of loans to Co-operatives and farmer groups is the season-based repayment schedule, with bullet payments (principal and interest paid in a lump sum) toward the end of the season when the harvest comes in. The loans are secured primarily by firm off-taker (sales) agreements / contracts, though additional security may be required, depending on the circumstances.
As part of its risk management strategy, the Bank has set limits for lending to its customers. The customers are informed about these when they come to the Bank. The amount available for lending at the Bank is a function of the capital available as well as head room available on the various lines of credit. We ordinarily lend a minimum of UGX 100 million and a maximum of up to USD 10 million or its equivalent in UGX subject to availability of funds.
The Bank finances projects in various strategic sectors in the economy which include: Agriculture and agro-processing, Manufacturing, Education, Health, Hospitality, Social infra-structure, construction and Real Estate, Trade Services and Extractive Industries amongst others. The Bank funds these sectors by offering various products to the general public. These include project loans (Short, Medium and Long Term), Working Capital Loans, Equity Finance, Asset Finance, Lease Finance, Trade Finance, Funds Managed under special terms and indirect facilities such as guarantees, bid bonds etc.
In addition free advisory business development services are provided to the Bank’s clients to enhance their entrepreneurial capacity as well as monitoring all projects to ensure effective implementation.
Anybody can qualify so long as you meet the Bank’s lending and investment requirements that include: The project should be financially viable, Economically feasible, Socially desirable, Create sustainable development impact to the community, In short, the project should make economic and business sense to the project owner, the Bank and the country at large.
To qualify for the Bank’s financing the key requirements include the following: The Business should be formally registered, Should have collateral, A business plan, Should be able to keep proper business records, Should operate in a fixed place of aboard, Should be engaged in a business activity considered to be legal by the law of the country
Our core mandate is to provide accessible and affordable resources across the country. In this vain, UDBL has opened its doors to all feasible projects in all corners of Uganda. All Ugandans with projects which meet our minimum criterion are encouraged to come to the Bank or contact the Bank by telephone or email at their convenience.
We have however developed our very unique and easily accessible farmer group model which is designed to benefit micro and small individual farmers who are registered members and working in a group. The farmer group model is designed to provide resources to individual farmers to among others clear land, procure improved seed varieties and crop protection including fertilizers, on farm activities like weeding, post-harvest handling, value addition and access to markets. This is not only limited to crop farmers but also to those dealing in birds and livestock for procurements and husbandry.
- Short term project loans and Trade Finance= 14.5%
- Medium term project loans=13.5%
- Long term project loans = 12.5%
- Agro-based Loan=12%