The Government of Uganda, through the Ministry of Gender, Labour, and Social Development, has introduced the GROW (Growth Opportunities for Women) Loan to support women entrepreneurs by enhancing access to affordable financing.
Here’s a detailed breakdown of the key features and requirements of the GROW Loan as offered by participating commercial banks.
Attractive Interest Rates
The GROW Loan is offered at an annual interest rate not exceeding 10%, making it significantly more affordable than most commercial loans. This equates to less than 1% interest per month, providing a cost-effective financing option for women-led businesses.
Loan Amount and Repayment Terms
Eligible women entrepreneurs can borrow amounts ranging from UGX 4 million to UGX 200 million, depending on the scale and needs of their businesses. The repayment period is flexible, ranging from 6 months to 2 years, allowing borrowers ample time to manage repayment based on their business cash flow.
Collateral Requirements
While the GROW Loan does require some form of security, the collateral terms are flexible. Women with no traditional collateral still have options, as banks accept various forms of security, including:
- Registered and unregistered land
- Movable household or business assets
- Personal or group guarantees
The type of collateral required may vary depending on the bank and the loan amount.
Who is Eligible?
To qualify for a GROW Loan, applicants must meet the following general eligibility criteria:
- Operate a women-owned micro or small enterprise, with at least 51% ownership by a woman entrepreneur
- Use the loan for business operations or growth
- Ensure the business complies with the GROW Project’s environmental and social safeguards
- Apply for the loan as a new loan, as loan substitution is not allowed
Application Requirements
While the exact documentation may vary by bank and loan size, common requirements include:
- An active or newly opened account with the participating bank
- A completed loan application
- Proof of cash flow and a valid trading license
- For contract financing: a contract and call-off orders
- Acceptable forms of collateral as previously listed
Fees and Charges
There are no application, processing, or arrangement fees payable to the bank for the GROW Loan. Borrowers may, however, be required to pay statutory or third-party fees, such as:
- Security valuation fees
- Mortgage registration charges
- Insurance premiums
- Credit Reference Bureau charges
Providing Feedback
The GROW Project encourages feedback and is committed to addressing any concerns. You can reach out through the following channels:
- Toll-free numbers: 0800307777 or 0200244000
- WhatsApp: 076-2304961
- Email: grievances@grow.go.ug / grow@psfu.org.ug
- Postal mail: Project Coordinator, GROW Project, P.O. Box 7136 or 7683, Kampala, Uganda
- In person: Speak with a GROW Project Focal Point Person at your district, city, or municipality
- For refugee communities: Contact your Regional Desk Officer or Camp Commandant
- Online: Visit the GROW Project website
- Suggestion boxes: Available at the GROW Project Office
