Stanbic Bank woos private schools with attractive financial packages

The chief executive director Stanbic Bank Uganda, Anne Juuko, has said there is no way one can drive economic growth without enhancing human capital development.

She made the remarks during a virtual forum organized by Stanbic Bank and the Proprietors of Private Educational Institutions’ Association in Uganda.

"Let’s understand your unique circumstances so we help you,” Juuko said at the virtual forum.

Stanbic Bank has reduced the cost of borrowing to between 16%-19% for most of its customers mainly to support economic recovery.

Juuko said the bank has in place insurance policies and urged school proprietors to consider taking them up to mitigate future business risks.

She urged private school owners to take keen interest in Bank of Uganda’s credit relief measures that are available for the private sector.

As schools prepared to re-open, Stanbic Bank announced the immediate availability of Shs 60billion in hugely discounted ‘booster financing’ to the education sector.

Under the discounted booster finance, schools are able to borrow up to Shs500m in collateral-free (unsecured) loans.

Parents can also access up to Shs 250 Million in unsecured loans processed digitally and dispersed within five minutes at zero processing fee.

The bank revealed that its decision to waive all 2021 unpaid accumulated interests on loans to privately owned schools is a proactive initiative based on the understanding that schools have not been earning and that they need to be supported to regain their ability to settle their liabilities.

Tumubweinee Twinemanzi, the executive director supervision at Bank of Uganda said any loan granted relief shall maintain the same loan classification status over the 12 months to 30th September, 2022.

Twinemanzi urged financial institutions to be transparent and for customers to understand the terms of borrowing in line with these credit measures.

Mike Kironde, the national chairperson for Proprietors of Private Education Institutions Association in Uganda, said private schools play an important role in growing Uganda’s economy through jobs and related opportunities.

Kironde said 65% of students belong to private schools and the latter employs 800, 000 workers, of which 500, 000 are teachers and 300, 000 are non-teaching staff.