KAMPALA/UGANDA: Centenary Bank, a leading commercial bank in Uganda, has launched a new loan product called the Agribusiness Solar Loan.
This loan product is specifically designed to provide finance for purchasing and installing solar-powered irrigation systems for small-holder and commercial farmers.
The Agribusiness Solar Loan has a minimum loan amount of UGX 100,000 and a maximum loan amount of 50 million for irrigation systems and accompanying equipment. Borrowers can choose flexible loan periods of up to a maximum of 60 months depending on their appraised loan repayment capacity. The loan product also comes with a fixed interest rate of 1.67% per month charged on a declining balance.
One of the major benefits of the Agribusiness Solar Loan is that borrowers will receive free installation, demonstration/training on usage, and a defect liability period.
“In addition, borrowers will be granted a grace period based on their cash flows,” a statement from the bank to this publications reads.
Accordingly, collateral requirements are also flexible and will depend on the loan size and assessed risk.
In order to access the loan faster and better, multiple transaction channels have been made available for borrowers, including agents, over the counter, CenteMobile, online banking, and service access at any Centenary Bank branch.
To be eligible for the Agribusiness Solar Loan, applicants must have a current or savings account, a completed loan application form, and a financial card. Additionally, borrowers must be small-holder or commercial farmers engaged in a viable agribusiness enterprise. Financed equipment is part of the collateral, along with any other assets that may be advised.
Importance of the loan
The launch of the Agribusiness Solar Loan is a welcome development for farmers in Uganda, as it provides them with access to financing for renewable energy solutions that can improve their farming operations. This loan product will help farmers to adopt sustainable practices and reduce their reliance on fossil fuels, while also boosting productivity and profitability.
In a statement, the CEO of Centenary Bank, Fabian Kasi, said: “We are pleased to launch the Agribusiness Solar Loan, which will help to drive the growth and development of the agricultural sector in Uganda. This loan product is part of our commitment to providing innovative financial solutions that meet the needs of our customers.”
Follow this link for information about the Cente Solar Loan; Centenary Bank