When the GROW loan facility, an initiative of the Generating Growth Opportunities and Productivity for Women Entrepreneurs (GROW) Project was launched, 6 banks were selected to work with the project. The banks will give loans from Ss2 million up to Shs200 million to help women grow their enterprises from micro to small and from small to medium enterprises. While others are getting the loans already, others are still confused and to make them understand the process better, Dr Aisha Ruth Kasolo who is the Project coordinator of GROW answered some of the questions in a Q and A session. The participating banks include Stanbic, Centenary, Finance Trust, Equity , Post Bank and DFCU Bank
What is the GROW Loan?
These are business loans that enable women grow their businesses – whichever level they are at. With subsidized rates and flexible security requirements, the GROW Loan offer women across Uganda opportunities to take charge of their financial future.
What is the main objective of the GROW Loan?
The GROW Loan exists to increase access to working capital loans to female entrepreneurs to grow their enterprises from micro to small and from small to medium-sized businesses.
Which districts does GROW Loan cover?
Loans can be processed throughout all districts, cities, and municipalities of Uganda.
Who are the GROW Loan target beneficiaries?
Women entrepreneurs who own micro, small and medium enterprises as individuals or majority shareholders of SMEs. Special groups like Refugees, PWDs, the Tepeth, Ik, Benete, and the Batwa, and areas needing developmental support i.e., Bukedi, Busoga & Karamoja are also eligible.
What do we consider a woman-owned enterprise?
An enterprise in which a woman/women own(s) at least 51% of the business shares.
What benefits come with the GROW Loan?
The Loan comes with the following benefits:
- Flexible security/collateral (from guarantors, market receipts to land titles).
- 8.5% for special groups and 10.5% for all women computed at a declining balance.
- Free technical support like business registration.
- Free entrepreneurship, mentorship skills & networking events.
- Free financial literacy training. f. GROW bonus from 5% to 10% for well-paid loans for at least halfway the loan period.
- GROW Loan is not limited to any sector but supports women from all sectors.
- Grace periods are provided where applicable.
- No application and processing fees.
Are refugee women eligible for GROW Loan?
Yes. Provided they own a business and are legally recognized by the Government of Uganda and own a functioning business.
How does a Woman Entrepreneur access GROW Loan?
They just have to visit any of the 6 participating banks
Who qualifies for special consideration (affirmative action) under GROW Loan?
Ethnic minorities like the Batwa, Tepeth, Ik, and Benet and Persons with Disabilities (PWDs) as defined by the Disability Act 2020 as classified below rate.
How do Men benefit from the GROW Loan?
The GROW Loan aims at supporting women enterprises which ultimately benefits households including men. Men who are employees or shareholders of women-owned enterprises will indirectly benefit in the Project.
Is GROW Loan meant only for formal business or can the informal ones also benefit?
The Loan supports both formal and informal businesses (registered and unregistered) that are owned by women.
Can women groups apply for GROW Loans?
No, the loan is available to individual women entrepreneurs and enterprises owned by women, not groups.
How much can I borrow under the GROW Loan?
The GROW loan amount minimum is UGX 4m and maximum is UGX 200m. The amount given is based on the bank assessment criteria.
What is the difference between the ordinary Account and the GROW Loan?
The GROW loan is specifically for women in business while the account can be opened and run by any woman, including Start-up businesses, whether male or female-owned.
What is the loan repayment period?
The GROW Loan repayment period is a maximum of 24 months.
What are the GROW Loan requirements?
Every applicant should have a Bank account. • Have ongoing business activity. • Title deed or other asset(s) being offered as security with a valuation report (dated within 4 years of the application date), done by Bank-approved valuers. • Site visit reports and valid licenses for the business. • Loan guarantors (personal or corporate) are required.
Can I get a GROW Loan to refinance another loan?
No. Loan substitution is forbidden. A GROW Loan can only be accessed as a new loan.
Are there bank charges on the GROW Loan processing?
Here are no loan processing charges. However, there are applicable charges such as valuation of security, mortgage registration, insurance, and fees for Credit Reference Bureau which have to be paid by the borrowers.
Which businesses cannot access a GROW Loan?
Enterprises that are high risk in nature and those that have significant negative impact on the environment and society, such as charcoal burning, sports betting and gambling, production of wood and other forestry products not sourced from sustainable forests, activities on disputed land, production of pesticides, and trade in wildlife products.
Can I get a GROW Loan if I am servicing another loan?
Yes. You can get the loan as long as you are not servicing the same product and as long as you have the capacity to pay the additional loan.
