Banks issued Shs 1.5trn in loans ahead of festive season
KAMPALA, 4 January 2025 – The Government has reported that commercial banks in Uganda extended loans amounting to at least Shs 1.5 trillion to various clients in the lead-up to the Christmas holiday season.
According to the Ministry of Finance, Planning and Economic Development, in October 2024, all banks together issued loans in anticipation of a surge in business activity during November and December 2024.
The Ministry’s Performance of the Economy Monthly Report reveals that, in October 2024, the total value of approved credit increased marginally from Shs 1.568 trillion in September 2024 to Shs 1.589 trillion in October 2024.
The report attributes the higher loan approvals to increased demand in the Business Services sector, where firms sought working capital ahead of the festive season.
It further notes that the rate of loan approvals saw a substantial improvement, rising 20-fold from 55.2 per cent in September 2024 to 75.4 per cent in October 2024.
The report highlights that personal and household loans accounted for the largest share of total credit approved in October 2024, amounting to Shs 445 billion, or 28.0 per cent of the total loans granted.
Loans to the business community, social services, and other sectors amounted to Shs 254 billion, representing 16 per cent of the total. Loans in the trade sector reached Shs 248 billion, or 15.6 per cent of the total, while the building, construction, and real estate sector accounted for Shs 231 billion, making up 14.5 per cent. The manufacturing sector secured loans worth Shs 211 billion, or 13.3 per cent of the total approved loans.
The Ministry has stated that this growth was driven by an increase in both Shilling and foreign currency-denominated credit.
https://thecooperator.news/stanbic-increases-ceiling-for-unsecured-sacco-loans-to-shs-4bln/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
Views: 10
