GROW Loans Frequently Asked Questions Answered

Dr Ruth Aisha Kasolo Biyinzika

HABARI DAILY I Kampala, Uganda I The six partner banks participating in the Enhancing Growth Opportunities and Productivity for Women Enterprises (GROW) project, have started giving out loans to qualifying women. Dr. Ruth Aisha Biyinzika Kasolo the project Coordinator, together with her team are toiling to ensure that as many women as possible benefit from the low interest rate loans, invest in their businesses and prosper. Below are answers to the Frequently Asked Questions (FAQ) which they managed to come up with.

Question: What is GROW?

Answer: The Generating Growth Opportunities and Productivity for Women Enterprises (GROW) is a Government of Uganda project, funded by the World Bank, and is implemented by the Ministry of Gender Labour and Social Development (MGLSD) and Private Sector Foundation Uganda (PSFU).

What are GROW LOANS?

GROW Project has allocated funds in the form of GROW LOANS which are affordable loans to women entrepreneurs seeking to grow and expand their businesses. Enterprises have outgrown most micro-credit and livelihood programs. Micro-enterprises with the potential to transition from micro to small enterprises with the potential to transition from small to medium and medium to large.

Who are the target beneficiaries?

The primary beneﬁciaries of the GROW LOANS are women entrepreneurs who own micro, small and medium enterprises.

What is the eligibility criteria to access the GROW LOAN?

The eligibility criteria to access the GROW LOAN is as follows:

Individual women entrepreneurs and individual women-owned enterprises or women entrepreneurs who own at least 51% shares of the enterprises.
GROW Loans are for ﬁnancing business operations and growth activities, they are not for ﬁnancing household expenditure, household shocks, etc.
All GROW Loans borrowers MUST complete and comply with the lending standards and appraisal processes of the Participating Financial Institutions to which they choose to apply.
Business enterprises that comply with the Government of Uganda Laws and Policies on Environmental and Social Safeguard standards.

Where are the funds accessed?

GROW LOANS will be accessed through Participating Financial Institutions (PFIs), including Banks, Microﬁnance institutions and SACCOs. As of September 2024, we have 6 commercial banks as participating financial institutions, and these are:

Post Bank
Centenary Bank
DFCU Bank
Stanbic Bank
Equity Bank
Finance Trust Bank

Will there be additional participating financial institutions?

GROW LOANS will also include Micro Finance Institutions, which will be made available to the public after all stakeholders have completed agreements.

How much can I borrow under the GROW loan?

The GROW loan amount minimum is UGX.4M and the maximum is UGX.200M. The amount given is based on lending standards and appraisal processes of the Participating Financial Institutions.

What is the rate of the GROW LOANS?

Currently, the Commercial banks are offering GROW loans at an interest rate of 10 – 10.5 % per year, less than 1% a month. The rate is calculated either on reducing balance or a flat rate basis given by the financial institution. Please note that it is subject to change if economic conditions evolve or if additional Participating Financial Institutions (PFI) come on board.

What is the loan repayment period?

The GROW LOAN repayment period is up to a maximum of 2 years.

How often should loan payments be made?

The loan repayments can be made weekly, monthly, or quarterly based on the repayment capacity of the business.

Can the repayment period be extended?

GROW LOAN repayment period will only be extended after a review process of the project based on feedback from the beneficiaries and this information will be made public.

Which districts does the GROW LOAN cover?

The GROW LOAN covers all districts, cities and Municipalities of Uganda through branches of the Participating Financial Institutions shared above.

Can I access the GROW LOAN when out of Uganda?

GROW Loan can be accessed by all eligible beneficiaries through the participating financial institutions within and out of the country.

When can women access these funds?

The GROW Loan facility was launched on 29th August 2024 so that all beneficiaries can access the funds hereafter.

What are the requirements from the Participating Financial Institution?

The participating financial institutions have requirements based on lending standards and appraisal processes. Some cross-cutting requirements include:

Must be ready to open an account with the participating financial institution of choice.
Complete the loan application process including ﬁlling the application form.
Proof of cashﬂows
Proof of ongoing business activity
Flexible security requirements, including guarantees, chattels, kibanja, and land titles.

Can women in groups apply for GROW LOAN?

The GROW LOAN is for individual women entrepreneurs and women-led enterprises. We encourage women in groups to participate by offering guarantees to their members to enable them to access the loans.

Can I access more than one GROW LOAN?

GROW LOAN encourages the beneficiaries to access one loan at a time to ensure good payments.

Can I get a top-up loan on a GROW LOAN?

GROW LOAN requires beneficiaries to have new loans. As such top-ups are not acceptable.

Are there bank charges on the GROW LOAN?

GROW LOAN does not have any processing and insurance fees. The only applicable charges are statutory such as valuation of security, mortgage registration and Credit Reference Bureau fees.

Dr Ruth Aisha Kasolo Biyinzika

Are there any special incentives involved?

The special incentives are called “GROW LOAN BONUS.” Beneficiaries who make timely loan payments qualify for a bonus in the range of 5% – 10% of the principal for all new loans. Currently, the bonus is a 5% rebate for all women irrespective of location.

Are there any special incentives involved for refugees?

GROW LOAN BONUS offers an 8% rebate for women refugees and host communities who make timely loan payments.

Are there any special incentives involved for beneficiaries who are disabled?

GROW LOAN BONUS offers a 10% rebate for women entrepreneur’s borrowers that are known as Persons with Disabilities (PWDs) as deﬁned by the Disability Act 2020, who make timely loan payments.

Are there any special incentives involved for beneficiaries who are in poverty-stricken areas?

GROW LOAN BONUS offers a 10% rebate for women entrepreneur’s borrowers that are in the notably poverty-stricken sub-regions of the Karamoja region – 10 districts and Busoga-Bukedi region– 20 districts who make timely loan payments.

Are there any special incentives involved for beneficiaries who are in minority groups?

GROW LOAN BONUS offers a 10% rebate for women entrepreneur’s borrowers that are “Special Cases” drawn from underserved/ minority groups namely Batwa, Ik, Tepeth and Benet who make timely loan payments.

Does GROW LOAN support women with no collateral?

GROW LOAN offers support to women with no collateral by enabling them access funds through:

Ensuring participating Financial Institutions especially microfinance institutions have collateral-free products. In addition to alternative flexible group guarantees.
Working with Micro Finance Institutions which offer more interpersonal products based on feedback from beneficiaries
Development of a derisking mechanism in the form of a guarantee with the participating financial institutions.
Training support for beneficiaries through a core course, enabling them to have good records used as collateral during the loan process.
Offering apprenticeships for over 5,000 women entrepreneurs to prepare them for business operations.

Will GROW LOANS have any other products?

Through the feedback received from beneficiaries, the GROW LOAN will offer additional products to the public. These products will be innovated across the different financial institutions to ensure that all women can benefit from the credit facility. The first set of products was released through banks and additional financial products will also be released through the banks and the Microfinance Institutions.

What sectors does GROW LOAN support?

GROW Loan supports all sectors for example manufacturing, agriculture and trade based on the available loan products offered by the participating financial institutions.

Does GROW LOAN support imports?

GROW Loan supports the importation of goods however not to be used for imports of used or finished goods not aligned with policies guided by the Government of Uganda for example importation of used clothes which is against the Buy Uganda Build Uganda Policy and Import Substitution policies under the Ministry of Trade.

Which businesses are not supported under the GROW LOANS?

Enterprises with high risk and those that have signiﬁcant negative impact on the environment and society including charcoal burning, sports betting and gambling, production of wood and other forestry products not sourced from sustainable forests, activities on disputed land, production of pesticides, and trade in wildlife products

For additional details, refer to the exclusion list on the GROW project website and GROW service providers.

Does GROW LOAN support ideas or startups?

Startups are not eligible as per GROW Project guidelines which clearly state that the project is meant to support Women in Business.

What if beneficiaries fail to pay the loans?

Beneficiaries who have failed to make payments will experience loan default procedures by the participating financial institutions which are enforceable under the Laws of Uganda.

What additional support is available under the GROW Project?

Women entrepreneurs are further supported through complementing GROW Project components below:

District-level, national-level and sector-level fora for women entrepreneurs for mentorship, networking, information sharing and training. Both existing and new platforms.
Essential business management skills training in fields such as record keeping, saving, enterprise selection, etc.: 9-module course by MUBS.
Specialised skills training across different sectors: such as carpentry, metal fabrication, and textiles: found on website under: https://grow.psfuganda.org
Trade facilitation services such as product certification, business registration, product development and export readiness, found on website under: https://grow.psfuganda.org/mda
Work placement and apprenticeships where women entrepreneurs access business coaching and mentorship. For example, women will be hosted at hotels, construction sites and factories.

How and where does one report a grievance or give feedback under GROW?

There are several ways to register grievances. One can raise a complaint through:

Participating Financial Institution Grievance Mechanism
District Focal Person. (FPP) refer to the list of focal points persons on the GROW website.
For refugees, visit or contact the Regional Desk Officer or Camp Commandant.
The Project Toll Free Line: 0800 307777
Email, WhatsApp and telephone communications listed below
The GROW project website
Client Relations Officers stationed at the GROW Project Offices
Suggestion boxes at the GROW project offices.

Where are the Ministry of Gender Offices?

Ministry of Gender, Labour and Social Development,

Gender and Labour House, Plot 2 George Street,

P.O. Box 7136, KAMPALA.

Telephone: 0200244000

Email: info@grow.go.ug

Where are the Private Sector Foundation Offices?

Private Sector Foundation Uganda

Plot 4 Kyadondo Road, Trust Tower, Ground ﬂoor, ,

P.O. Box 7683, Kampala.

Telephone/Whatapp: 0762304961

Email: grow@psfu.org.ug