Uganda Development Bank (UDB), which is headed by Patricia Ojangole as Managing Director, has introduced the UDB SME Kazi Loan, a tailored financial solution designed to empower small and medium enterprises (SMEs) in Uganda. This loan offers funding of up to Shs720M with a flexible repayment tenure of up to 6 years, providing SMEs with the necessary capital to expand their operations, boost productivity, and create more jobs.
According to UDB, the loan is an intervention to enable access to affordable financing and Business support to promote sustainable growth of SMEs and build their resilience against business shocks.
Reiterating this objective, Dr. Ojangole says that, “At Uganda Development Bank, our mission has always been to empower local enterprises, foster sustainable growth, and drive socioeconomic transformation through strategic investments.”
To be eligible for the loan, the entity must be a Small or Medium Enterprise with an Annual Turnover of up to Shs100M for small enterprises and Medium of up to Shs360M.
Driving Business Growth
The UDB SME Kazi Loan is a key economic driver in several ways, some of which include:
Access to Affordable Financing
The loan provides SMEs with access to affordable financing, enabling them to invest in their businesses and drive growth.
Job Creation
By supporting SMEs, the loan can help create more jobs, contributing to economic growth and development.
Increased Productivity
The loan can help SMEs boost productivity, leading to increased efficiency and competitiveness in the market.
Benefits for SMEs
The UDB SME Kazi Loan offers several benefits to SMEs and budding entrepreneurs, including:
Flexible Repayment Tenure
The loan’s flexible repayment tenure of up to 6 years allows SMEs to manage their cash flow and repay the loan in a manner that suits their business needs.
Tailored Financial Solutions
UDB’s tailored financial solutions are designed to meet the specific needs of SMEs, providing them with the necessary support to grow and sustain their businesses.
Impact on the Economy
The UDB SME Kazi Loan, which is so timely given the unstable economic situation in the country, can have a significant impact on Uganda’s economy by:
Promoting Economic Growth
By supporting SMEs, the loan can contribute to economic growth and development, leading to increased economic activity and job creation.
Encouraging Entrepreneurship
The loan can encourage entrepreneurship and innovation, leading to the development of new businesses and industries.
The UDB SME Kazi Loan is a vital initiative that can drive business growth and economic development in Uganda. By providing SMEs with access to affordable financing, UDB is empowering businesses to expand their operations, create jobs, and contribute to the country’s economic growth. With its flexible repayment tenure and tailored financial solutions, the UDB SME Kazi Loan is an attractive option for SMEs looking to take their businesses to the next level.