Medium term loans are project loans that are intended for projects with a capital expenditure component, including expansion, refurbishment, and re-equipment as well as establishment of new projects. Medium- term project loans must be presented with a detailed implementation schedule. The project should be completed within 12 months from initial disbursement date.

Purpose:
Provision of medium-term loans to finance acquisition, construction, expansion, modernization and installation of fixed assets.

Qualifying Sectors/Businesses:
Key growth sectors of Uganda’s economy with emphasis on capital development in sectors such as primary agriculture& fisheries, forestry, agro-processing, education & social services, health, oil & gas, infrastructure, manufacturing, construction & real estate, hotel, tourism & hospitality, extractive industries amongst.

Tenure:
The duration for medium-term loans stretches for a period from 2-5 years from the initial disbursement date.

Grace Period
The grace period for medium-term loans range from 3 months to 12 months, depending on the implementation schedule, project cash flow pattern and project unique circumstances.

Interest Rate:
The Bank’s UGX reference (prime) interest rate for medium-term loans per annum is 13% plus the risk premium determined by the Bank’s interest rate model. The USD reference rate per annum is at 6.5% plus a risk premium

Appraisal Fees:
Appraisal fee for medium-term loans is 2% of the value of the loan with the maximum capped at 100m.

Collateral/ Security:
Medium-term loans will be fully secured preferably by a mortgage over immovable assets, chattels mortgage and preferably the project site. The minimum forced sale value of security should be 120% of loan amount. Corporate and Personal guarantees of the proprietors are also required.

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