The recent report by the African Development Bank (AfDB) states that one of the significant barriers to economic success for Ugandan youth is access to finance. Financial institutions often require extensive paperwork and substantial collateral, which many young people lack, thereby excluding them from the financial economy.
To address this challenge, Stanbic Bank Uganda has launched a new campaign called Kiri Supa Dupa designed at breaking barriers to access to finance for newly employed individuals especially the youth.
According to Israel Arinaitwe, Head of Personal Banking, the initiative aims to alleviate the financial strain on youth, families, businesses, and schools during the back-to-school season. The campaign offers a revised range of unsecured financing options to also women-owned businesses, acknowledging their crucial role in driving Uganda’s economic growth.
Kiri Supa Dupa provides unsecured loans for salaried employees earning as little as UGX 150,000monthly, with loan amounts reaching up to UGX 350 million. These loans have competitive interest rates starting at 16% and repayment terms of up to 96 months, allowing customers to manage their finances without the burden of collateral.
Arinaitwe stated, “We are targeting everyone in the value chain, especially parents and guardians preparing for back-to-school expenses, as well as employees and entrepreneurs in both formal and informal sectors. Empowering youth and women aligns with Stanbic Bank’s purpose: ‘Uganda is our home, we drive her growth.’”
Notably, individuals under 35 comprise the largest segment of Uganda’s workforce, yet many lack the assets necessary for securing bank loans. This demographic plays a vital role in economic development, making it imperative to ease the conditions limiting their access to capital.
For those aspiring to own homes, Stanbic offers home loan packages of up to 100% financing at a 15% interest rate, repayable within 25 years.
The Kiri Supa Dupa campaign also aims to broaden its outreach, enhancing initiatives like Stanbic For Her, which provides unsecured financing for women entrepreneurs at interest rates between 12.5% and 15%.
The bank has allocated a significant portion of its loan portfolio to support the unbanked community through Savings and Credit Cooperative Organizations (SACCOs), which can access loans up to UGX 4 billion at rates as low as 10%.
