• October 27, 2020
  • No Comment
  • 4 minutes read

dfcu Bank Unveils Unsecured Baraka Loans To Save Informal Sector

dfcu Bank Unveils  Unsecured Baraka Loans To Save  Informal Sector

 In a move to continue making it more possible for businesses in Uganda to thrive, dfcu Bank has introduced an unsecured loan product to support small and medium businesses in Uganda.


The unsecured loan product dubbed as “Baraka Loans” will enable customers to get access credit without having to put up the security (land and or other properties) normally expected of borrowers. The Baraka loans will be at a minimum of UGX 2,000,000 and up to UGX 30,000,000 for businesses and will have a tenor between 1 month and a maximum of 12 months at an interest rate of 2.5% per month.

Mathias Katamba, CEO dfcu Bank

“We know that many times small business owners especially in the informal sector have challenges accessing capital yet they comprise the largest part of our economy,” said Ronald Kasasa, dfcu Bank’s Head of Business Banking.


“SMEs make up over 70% of the country’s economy and contribute over 20% of our GDP. These Baraka loans will enable SMEs to acquire credit more quickly without having to worry about loan security and property valuations which slow down the process of acquiring a loan. With the Baraka loan product, one will be able to receive their loan within 48 hours.


We believe that this will be a welcome effort for many business owners at a time when the economy and businesses are suffering from the impact of Covid-19.”


The Baraka loans will be critical for businesses  that need working capital and or acquisition of CAPEX items (equipment, building, machinery, and vehicles).


As part of its continued efforts to make more possible for customers, dfcu Bank has been enabling business owners to maneuver the challenges that have been brought about by COVID-19.


These initiatives have included the restructuring of facilities over the last seven months and more recently the roll out of trade finance solutions like the Unsecured bid bonds of up to UGX 500,000,000 to support traders and contractors in the management of their working capital and secure contracts.

Related post

Minister Nandutu Remanded to Luzira

Minister Nandutu Remanded to Luzira

The misuse of iron sheets intended for the residents of the Karamoja sub-region has led to the High Court committing the…
Travel Guide: Best Time to Visit Uganda

Travel Guide: Best Time to Visit Uganda

Welcome to Uganda, the Pearl of Africa! Uganda is a landlocked country located in East Africa, known for its diverse wildlife,…
Minister Nandutu Hands Self to Police

Minister Nandutu Hands Self to Police

Hon. Agnes Nandutu, the Minister of State for Karamoja Affairs, has, at last, turned herself in to the police, who are looking into…

Leave a Reply

Your email address will not be published. Required fields are marked *