Uganda, like many other countries, recognizes the importance of empowering its youth through financial support. If you’re a young entrepreneur or an aspiring business owner in Uganda, securing a youth loan can be a game-changer.
The following are various avenues for obtaining youth loans in Uganda and provide practical tips on navigating the process.
1. BRAC Uganda’s Youth Loans via Kiva
Overview
- Description: BRAC started microfinance in Uganda in 2006, as a part of BRAC Uganda’s social development programs. It became a Tier 2 Credit Institution to become BRAC Uganda Bank Ltd in 2019. BRAC Uganda Bank Ltd has the country’s largest network of banking services, providing inclusive financial services for low-income communities to build sustainable livelihoods.
- BRAC Uganda offers a unique loan product through the Empowerment and Livelihood for Adolescents (ELA) program.
- Target Audience: Adolescents aged 16-21, especially young women who lack minimal collateral for traditional microfinance.
- Program Components:
- Skills Development: Marketable livelihood skills training.
- Livelihood Support: Productive assets for income-generating enterprises.
- Institutional Support: Enhancing technical and managerial capacity.
2. Cente Youth Loan by Centenary Bank
The loan targets Ugandan youth aged between 18 and 35 years and it is a short to medium-term loan designed for financing business expansion. The loans support business ventures owned by young entrepreneurs and the eligible sectors include manufacturing, agro-processing, primary agriculture, fisheries, livestock, health, transport, education, ICT, tourism, construction, printing, and service contractors among others.
Eligibility Criteria
Existing enterprise (at least 3 months old).
Must have or open an account with Centenary Bank.
3. Pride Microfinance Youth Loan
Eligibility
- No collateral is required (unlike title deeds or logbooks).
- Available for youth entrepreneurs.
4. Youth Livelihood Programme (YLP)
Overview
- Description: A government-financed program aimed at addressing youth unemployment and poverty.
- Eligibility:
- Unemployed and poor youth aged 18-30 years.
- Includes dropouts, those without formal education, single parents, youth with disabilities, and even those who completed secondary or tertiary education but remain unemployed.
- Program Components:
- Skills Development: Marketable vocational skills.
- Livelihood Support: Productive assets for income-generating activities.
- Institutional Support: Enhancing implementation capacity.
5. Youth Venture Capital Fund
- Launched in 2012: Provides loans to 18-35-year-olds.
- Youth Livelihood Programme (Launched in 2014): Lends additional funds to 18-30-year-olds.
6. Youth Finance Scheme
Overview
- Description: Mitigates youth unemployment, enhances employability, and promotes self-reliance.
- Features:
- Tailored but guided loans.
- Enables beneficiaries to lead productive and sustainable livelihoods.
Conclusion
Securing a youth loan in Uganda involves understanding the available options, meeting eligibility criteria, and demonstrating your commitment to entrepreneurship. Whether you choose BRAC Uganda’s ELA program, Cente Youth Loan, or any other scheme, remember that these loans are stepping stones toward realizing your business dreams. Take advantage of these opportunities, invest wisely, and contribute to Uganda’s economic growth!
By following these steps, you’ll be on your way to accessing the financial support you need to kick-start your entrepreneurial journey. Best of luck!