New products aimed at enabling school owners start off the year and parents get tuition, after a hard end-of-year season have been launched by Standbic Bank – Uganda. The Bank says that this is in response to the repetitively stiff economic environment and low activity in the economy, characteristics of the beginning of the year.
The product under a three-month campaign dubbed “Oli Sorted” also benefits Ugandans with the need for capital to boost their businesses.
Israel Arinaitwe, Head of Personal Banking said after the last quarter of the year which is characterized by high-spending, individuals and businesses need cash in the first quarter to finance their plans for the year.
She continued to say “The new academic year is opening and we know what that means for parents, schools, and businesses linked to the education ecosystem and in a market where interest rates can be as high as 25 percent,” he said, adding that one will now be able to borrow up to 200 million shillings at as low as 16 percent per annum or 1.3 percent per month, at no arrangement fees”
For school owners, the bank is offering a School Development Loan of up to 3 billion shillings for a period of five years or 500 million shillings under the Unsecured Bridge Financing Solution. This is aimed at assisting them to cope with expenses on basic supplies and utilities needed to start the new term.
Arinaitwe said women entrepreneurs can access credit at 15.5 percent. “To address gender parity concerns that often affect equitable access to finance and opportunities for women, Oli Sorted campaign will enable women-owned businesses and schools to borrow at a special interest rate of 15.5 percent,” he said.
Customers taking advantage of these offers for construction are also offered free insurance cover, according to Dogo Singh, Bancassurance manager at Stanbic.
“Schools that get a construction loan of above a billion shillings or an unsecured school loan of above 100 million will automatically qualify for a fire insurance cover of up to 45 million, with free additional cover for theft and burglary worth 5 million, and up to 5 million for all the declared assets to be covered,” he said.
“Small and medium enterprise have also been catered for with loans of up to 200 million shillings for six months with interest rates starting at 20 percent under the Stanbic Enterprise category,” Aaron Akampa, Head of Enterprise Banking said.
The ‘Oli Sorted’ campaign runs till end of March 2024.