DANIDA Business Loan

Short term business loan with regular payments targeting micro business enterprises for financing working capital. The loan is targeted at the borrowers involved in commercial activities in the District of Rakai.

Main Features:

• Interest charged on declining balance.
• Minimum loan amount UShs. 100,000/=.
• Maximum loan amount of up to UShs. 15million.
• Flexible and regular repayment plans available.
• Loan period of up to a maximum of 12 months.

Basic Requirements:

• Savings or Current account with the bank.
• Movable Collateral like vehicles, household property or business assets.
• Guarantees, personal or corporate.
• Application fee of UShs. 5,000/=
• Commitment fee of 2% of loan amount.
• Inspection of collateral items intended for pledge as security
• Legal perfection of collateral and guarantees.
• Applicant must be resident in Rakai District.
• Established business premise
• There must be an on-going commercial business activity with a regular cash flow

Benefits:

• Fast and easiest way to access business funds.
• Affordable to most low income earners and rural poor.
• Informal loan security accepted.