Pride Bank Limited has launched a Sacco and Investment Club product aimed at supporting savings groups and investment clubs with easier access to credit.
Borrowers will be able to access loans on a reducing balance from any amount, up to a maximum of UGX 48 billion, repayable over a period of five years.
The initiative is designed to expand financial inclusion, empower communities, and promote collective growth as part of Uganda’s broader development agenda.
Savings and credit cooperative organizations have long struggled with limited access to finance from commercial banks, which has constrained their ability to lend quickly to members.
Even when funds are secured, delays and high interest rates have often limited the benefits to both Saccos and their members.
“We’re so happy with Pride Bank for coming up with this product, and we are fully behind them. However, we ask them to improve turnaround time if they want this product to be attractive to Saccos,” said Amon Namara, General Manager of Muhame Financial Services.
During the launch in Mbarara, Elizabeth Namaganda, Head of Marketing and Communications for Pride Bank, explained that the product is part of the bank’s mission to deliver growth-focused financial solutions to communities following its elevation from a microfinance deposit-taking institution (MDI) to a full commercial bank.
“As we take on this journey, there are a number of products and services we intend to unveil to fit the bank’s mission of expanding financial inclusion and community empowerment,” Namaganda said.
The new Sacco and Investment Club product is designed to serve Saccos, village savings and loan associations, rotating savings and credit associations, as well as investment clubs.
It offers structured savings, affordable credit, and business development support. Individual or group borrowers will be able to access loans of up to Shs48 billion.
Sacco leaders, however, have tasked Pride Bank with addressing concerns over turnaround time and interest rates, which they say are higher than rates available from other financial institutions.
“Now that this product has come on board, first of all we expect Pride Bank to give us loans on a reducing balance, unlike other commercial banks whose interest rates are fixed,” said Turtamureba Paul Kahigi, Chairman of the Board at Kyamuhunga People’s Sacco (KYAPS).
To qualify for the funds, individuals or Saccos must possess at least 50 acres of land, be registered as a company, and be involved in grain production.
Speaking at the launch, Gerald Tukamuhebwa, Deputy Resident City Commissioner for Mbarara City South, applauded the initiative and urged the bank to review its guidelines to better serve borrowers.
“I have been listening attentively to what these Sacco leaders have said. I hope that when you go back, you review and ensure all their concerns are addressed,” Tukamuhebwa said.
He further commended Pride Bank, noting, “I deeply commend Pride Bank for this product, and I hope beneficiaries will put it to good use to grow their businesses and ensure Sacco members benefit fully.”