Grow Loan Scheme For Women Entrepreneurs in Uganda

The world of business, over the years, has shifted with emphasis on opportunities for women entrepreneurs. In Uganda, this shift has been in the form of government initiatives to fund women’s projects in a bid for development. The latest of these initiatives, courtesy of the World Bank is the GROW loan scheme for women Entrepreneurs, so today, this piece is for businesswomen. What is the GROW loan scheme? Who qualifies for it and where does one get the GROW funds? Read on, dear reader.

Uganda’s GROW Loans—short for Generating Growth Opportunities and Productivity for Women Enterprises are targeted support for women entrepreneurs backed by the World Bank and implemented by the Private Sector Foundation Uganda (PSFU) specifically for women looking to scale their businesses. That is to say, women entrepreneurs running micro, small, and medium enterprises (MSMEs) allowing them to scale up and strengthen their operations. Thus, if you are a woman entrepreneur owning at least 51% of a business then you probably qualify for this loan.

But, why do the GROW loans matter?
In Uganda, it is no secret that women are indeed the backbone of the informal economy, carrying responsibility as they try to balance family life with the demands of providing a livelihood.  This, however, is never an easy path when you consider taking up the mantle of family care, ensuring their children have food on the table, a roof over their heads, and a chance for an education. In countless households, mothers step up not only as caregivers but as primary heads of their families; raising their children and even taking in grandchildren when life takes unexpected turns.

These obligations require a steady flow of funds, so women turn to the entrepreneurial hustle…selling spices and produce, setting up small stalls stocked with tomatoes and onions or even running modest shops. Their efforts are everywhere, from roadside markets to neighborhood hawking as they tirelessly work to support those under their wing.

However, while some succeed against the odds, others are held back by a lack of access to capital. This is where the GROW loans matter. To remove financial barriers and uplift women entrepreneurs.

So, What Does it Take to Qualify for a GROW Loan?
To qualify for the GROW loan, there are some basic requirements one must reach

• Ownership: As mentioned above, the business must be at least 51% owned by a woman.
• Business type and Registration: applicants are required to provide documentation proving business ownership and operation. For the informal business, the loan covers you too provided you show proof of running.
• Bank Selection: GROW loans are offered by six participating banks in Uganda, Stanbic, DFCU, Equity, Finance Trust Bank, Centenary Bank, and Post Bank. Each of these has received funding to support women-led businesses under the GROW scheme.

Loan Amounts, Repayment Terms and Conditions.
GROW Loans provide significant flexibility with loan amounts ranging from UGX 4 million to UGX 200 million, depending on the business’s needs and qualifications assessed by the bank. The loans are offered at highly competitive interest rates—around 10.5% per annum—making them more affordable compared to traditional financing options.

GROW Loan recipients who repay on time are eligible for a grant of up to 5% of the loan’s principal amount, further easing the financial burden and rewarding responsible borrowing.

Women entrepreneurs interested in GROW Loans can apply through participating banks: Stanbic, DFCU, Equity, Finance Trust Bank, Centenary Bank, and Post Bank. Each of these banks has dedicated resources and personnel to assist applicants in the loan application process.

How Can You Use a GROW Loan?
The GROW Loan program is designed to be flexible in terms of usage, allowing recipients to invest in various business growth areas:

• Expansion: Whether opening a new location, acquiring more stock, or expanding your service offerings, the GROW Loan can help fund expansion plans.
• Equipment Purchase: Upgrade or invest in new equipment that can improve productivity and efficiency.
• Working Capital: Improve cash flow and maintain steady operations during slow business periods.
• Business Development: Hire additional staff, conduct training, or invest in marketing efforts to expand your reach.

While GROW loans provide a remarkable opportunity for Ugandan women entrepreneurs to access funding, scale their businesses, and create lasting economic impact, one must understand that they are still loans. They have interest rates, and repayment schedules as all loans do.

That said, if you’re a Ugandan woman in business, consider looking into a GROW Loan and take the next step towards expanding your enterprise.