MASAKA, October 30, 2023 – At least 60 Saving and Credit Cooperative Organisations [SACCOs] from western and central regions have benefited from Stanbic Bank Uganda’s value proposition launched in June 2021 to benefit SACCOs and Village Savings and Loans Associations [VSLAs].
Under the value proposition, SACCOs that are registered with the Ministry of Trade, Industry, and Cooperatives [MTIC] opened accounts with the lender so that they access funds that they, in turn, lend to their members at a low interest rate.
During the recent celebrations to mark the ‘Love Month for its customers’ held in Masaka City, the Bank’s manager in charge of western region, Carlos Sserwadda revealed that they have over 120,000 customers in the western and Masaka regions whom they support with finances to boost their businesses.
Sserwadda urged informal sector VSLAs in the country to join the bigger SACCOs so that they can access cheap loans from Stanbic Bank.
‘’We support the informal sector by offering people in different enterprises with overdrafts for working capital,’’ he said, noting that with an overdraft, member SACCOs can be given more money by the bank than what is available in their current account.
He said Stanbic Bank further finances agricultural enterprises, especially in the dairy sector, adding that farmers have been guided on the proper utilisation of the loans borrowed from the bank.
He revealed that this year alone, the bank has disbursed Shs 8 billion to SACCOs in the western region, continuing that there is also agricultural insurance in case of losses caused by unpredictable weather conditions.
Meanwhile, Charles Kasujja the Masaka regional coordinator for Buddu-CBS POWESA [Project to Empower Women through Saving and Loans Associations] said they opened an account in Stanbic Bank Masaka Branch and have benefited a lot.
The benefits of the account include, free online banking, no monthly management fees, tiered interest paid on balances above Shs 10 million, financial literacy sessions for both management and selected members, as well as participation in capacity building programmes at the Stanbic business incubator.
In addition, the bank offers affordable 12.5 percent interest rate for an unsecured term loan of up to Shs 200mln with a tenor of not more than 12 months. The other option is a secured term loan of up to Shs 1.5bln with a tenor of between 12 and 36 months maximum.
Kasujja said since 2018, Buddu-CBS POWESA has mobilised about 10,000 SLAs with a total of 26,500 women and 15,000 men in Masaka region.
The Resident City Commissioner for Nyendo-Mukungwe division in Masaka City, Masitula Naava urged bank managers to intensify sensitisation of the population on saving culture and train SACCO leaders on financial management.
‘’Many people in the area lack the culture of saving and many have resorted to borrowing money from money lenders who confiscate valuable properties when they fail to pay back,’’ she said, adding that security organs are investigating the unscrupulous money lenders.
https://thecooperator.news/ifad-stanbic-bank-partner-to-cut-uganda-money-transfer-costs-by-half/
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