Finance Trust Bank has signed a Memorandum of Understanding with the Initiative for I&P Entrepreneurs & Development (IPED) to expand access to affordable loans for women-led and environmentally responsible businesses across Uganda.
Through a dedicated loan guarantee mechanism provided by IPED, the partnership will reduce collateral requirements and enable more women entrepreneurs to access formal financing under preferential terms.
The bank will manage loan appraisal, approval, disbursement, and portfolio oversight, while IPED will validate eligibility criteria, including women-led ownership and green or greening sector compliance.
“As a bank, we empower women economically and socially and we do it by identifying stakeholders and partners like IPED who help us achieve these objectives. We think this agreement will allow our customers access cheap credit, especially women and women led enterprises to scale into bigger markets,” said Percy Paul Lubega, Head of Marketing and Corporate Affairs at Finance Trust Bank.
The head of credit at Finance Trust Bank, Ali Lwanga said the fund will support the bank to lessen the collateral requirement because of the guarantee that comes with it
“ If per say you need collateral of 70%, it will now lower down to 50%. Whereas previously it was land title needed, now we can accept land agreement from a woman or woman led enterprises. The agreement will run for the next 12 months. What is key is that we shall have the loans attractive, inclusive and affordable so that every woman with a venture that is lendable gets,” Lwanga said.
According to officials, the facility will support businesses operating in sectors such as renewable energy, sustainable agriculture, waste management, circular economy, eco-tourism, and other environmentally conscious enterprises.
Barbara Adolehoume, the I & P WE4A Program Officer said the program focuses on green, women-led ventures.
“It has been very clear during my time here that supporting women in the green sector, especially in sustainable agriculture, is at the core of Finance Trust Bank’s strategy,” Adolehoume said.
She said the initiative will support women-led green ventures across the country with Finance Trust Bank providing loans averaging €22,000( approximately shs92 million).
“We aim to lower the barriers women face in meeting the criteria to secure these loans.”
