• Latest
  • Trending
  • All
  • News
  • Business
  • Politics
  • Science
  • World
  • Lifestyle
  • Tech
Absa school fees loans

Banks Rush to Parents with Loan Offers as Schools Re-open

January 5, 2022
Regional communications regulators to meet telecoms over roaming calling rates

Regional communications regulators to meet telecoms over roaming calling rates

September 20, 2023
University of London commences work with six African states to help improve children’s health

University of London commences work with six African states to help improve children’s health

September 20, 2023
More guns recovered in Karamoja

More guns recovered in Karamoja

September 1, 2023
Natete United Triumphs as champions in the inaugural break free edition

Natete United Triumphs as champions in the inaugural break free edition

September 1, 2023
Minister orders for arrest of PDCs, ghost beneficiries over PDM mismanagement

Minister orders for arrest of PDCs, ghost beneficiries over PDM mismanagement

September 1, 2023
UBOS commended for contributing towards statistical harmonisation at EAC level

UBOS commended for contributing towards statistical harmonisation at EAC level

September 1, 2023
Gvt warns schools on fees increment after Speaker Among’s guidance

Gvt warns schools on fees increment after Speaker Among’s guidance

August 31, 2023
Airtel Uganda is being sold to anyone at 100 shillings; All you need to know about the Airtel IPO

Airtel Uganda is being sold to anyone at 100 shillings; All you need to know about the Airtel IPO

August 29, 2023
Let parents, CSOs and authorities join hands to fight child labour

Let parents, CSOs and authorities join hands to fight child labour

August 28, 2023
Pope Francis hails Museveni, Among for preserving family values

Pope Francis hails Museveni, Among for preserving family values

August 27, 2023
ADVERTISEMENT
News 24/7
  • Home
  • News
    • All
    • Business
    • Politics
    • Science
    • World
    More guns recovered in Karamoja

    More guns recovered in Karamoja

    Natete United Triumphs as champions in the inaugural break free edition

    Natete United Triumphs as champions in the inaugural break free edition

    Minister orders for arrest of PDCs, ghost beneficiries over PDM mismanagement

    Minister orders for arrest of PDCs, ghost beneficiries over PDM mismanagement

    UBOS commended for contributing towards statistical harmonisation at EAC level

    UBOS commended for contributing towards statistical harmonisation at EAC level

    Gvt warns schools on fees increment after Speaker Among’s guidance

    Gvt warns schools on fees increment after Speaker Among’s guidance

    Airtel Uganda is being sold to anyone at 100 shillings; All you need to know about the Airtel IPO

    Airtel Uganda is being sold to anyone at 100 shillings; All you need to know about the Airtel IPO

    Let parents, CSOs and authorities join hands to fight child labour

    Let parents, CSOs and authorities join hands to fight child labour

    Pope Francis hails Museveni, Among for preserving family values

    Pope Francis hails Museveni, Among for preserving family values

    Zaake protests over missing NUP supporters, faces disciplinary action again

    Parliament passes the Narcotics bill

    Bobi Wine supporters

    Don’t interfere with our business, Bobi Wine tells security

    Trending Tags

    • Donald Trump
    • Future of News
    • Climate Change
    • Market Stories
    • Election Results
    • Flat Earth
  • Entertainment
    • All
    • Gaming
    • Movie
    • Music
    • Sports
    Natete United Triumphs as champions in the inaugural break free edition

    Natete United Triumphs as champions in the inaugural break free edition

    Sheebah, Cindy trade in a word of war ahead of their battle show

    Sheebah, Cindy trade in a word of war ahead of their battle show

    Wrap up of the weekend NBL games

    Wrap up of the weekend NBA games

    I hope to be remembered as a Rubaga boy who embraced music and cherished his country-Navio

    I hope to be remembered as a Rubaga boy who embraced music and cherished his country-Navio

    Wrap up of the weekend NBL games

    The midweek excite as teams put up decent display

    Sir Apollo Kaggwa Schools holds musical production to showcase students’ talents

    Sir Apollo Kaggwa Schools holds musical production to showcase students’ talents

    Wrap up of the weekend NBL games

    Wrap up of the weekend NBL games

    Ex UPDF soldier guards me -Alien Skin

    Ex UPDF soldier guards me -Alien Skin

    Former Makerere University player, Fahaby Kitimbo is in Australia for Festival23

    Former Makerere University player, Fahaby Kitimbo is in Australia for Festival23

    Butiki League match day 4 pulls a huge crowd

    Butiki League match day 4 pulls a huge crowd

  • Watch Now
  • Sports
  • Shot Stories
  • Fact Checker
No Result
View All Result
News 24/7
No Result
View All Result
Home News Business

Banks Rush to Parents with Loan Offers as Schools Re-open

The competition for new customers by the lenders coincides with the fact that many parents would like to take their children back to school, but are constrained financially. The financial sector is also targeting school proprietors and suppliers, who now need instant cash to get their businesses up.

admin by admin
January 5, 2022
in Education, Featured
Reading Time: 3 mins read
0
Absa school fees loans

An ABSA Bank branch in Kampala

ADVERTISEMENT

Commercial banks, Microfinance institutions and smaller money lenders are swarming schools and other educational institutions in search of new customers for loans to clear tuition and procure educational materials, among others, as the education sector reopens.

ADVERTISEMENT

The competition for new customers by the lenders coincides with the fact that many parents would like to take their children back to school, but are constrained financially. The financial sector is also targeting school proprietors and suppliers, who now need instant cash to get their businesses up.

Many lending institutions are offering discounted interest rates, easy security for loans and simplified processing for getting the money, among other incentives.

ADVERTISEMENT

The Ministry of Education and Sports says some regulated financial institutions approached them with proposals of financial solutions for schools, parents and suppliers and the financing models have been agreed on.

Dr Kedrace Turyageynda, the Director of Education Standards at the ministry says there is a cycle of financial constraint with the cash-strapped schools only having hope in parents, yet the parents are also constrained. She says the other option would be relying on the government, yet the government resources are also impacted by the pandemic. She, therefore, says the moves by the banking industry comes as a relief to all players.

The government and the education sector also secured relief positions where schools would be given a waiver of loan interest accumulated in 2021.

Stanbic Bank headquarters in Kampala

Stanbic Bank Uganda Chief Executive Anne Juuko says they decided to give interest rate cuts to education-related loans to 16 per cent but says that unsecured loans will attract a higher interest of 19 per cent. For the period to January 31, 2022, the bank will charge no loan arrangement fees, while a loan can be secured within two minutes for parents who already have accounts with the bank.

“The COVID-19 pandemic has left us with an unprecedented challenge; our schools have been closed and teachers have been out of work for two years, many parents and guardians also had their livelihoods interrupted as a result of loss of jobs or business,” she says.

Teachers have also been given special consideration on the salary loans they acquire, due to the fact that many, especially in private schools have not been paid salary for two years. Other offers will include access to communication gadgets like laptops for students on credit, as more learning institutions are requiring students to have either laptops or smart mobile phones.

She says, unfortunately, that the loans that the schools already have must be paid back, though interest has been waived.

According to the Uganda Bankers Association, school proprietors owe the banking sector, more than 1.5 trillion Shillings, on top of accumulated interest of about 500 billion Shillings. To protect the banks from liquidity crises, the Bank of Uganda will not push for the writing off of the debts.

Mustapha Nanfumba, the Managing Director of Mpigi Mixed Secondary School, one of the schools, whose loan repayment program was affected by the lockdown says that the decision to waive the interest and lower interest on future loans is welcome because it will boost the education sector.

He says that unfortunately for suppliers, the schools were closed before they could collect enough money to pay for the suppliers that are usually on credit.

But aware that parents and investors are likely to fall prey to unscrupulous people, Absa Bank Uganda has warned intending borrowers to beware of this so as not to lose the little they still have. The bank is offering a two-month repayment holiday on salary loans to customers, promising what they call ‘competitive interest rates, for sums between 1 million and 250 million Shillings.

“The pandemic has created economic pressures sending many into financial distress. With the impending school reopening, we are aware that parents will face challenges meeting school fees obligations,” says Musa Jallow, the Director, Retail Banking at Absa Bank Uganda.

And on their part, the Uganda Registration Services Bureau, URSB, reminds parents with limited property ownership or no formal employment, that movable properties can now be accepted as collateral.

“Phones, furniture, agriculture stocks like animals, household properties are now widely accepted as a form of collateral that the financial sector, especially banks, have for long ignored.

“Following the enactment of the Security Interest in Mobile Property Registry System Act, interested Ugandans should register such properties with the URSB, which can then be presented as collateral at banks,” says Mercy Kainobwisho, the Registrar General.

In the last few months, the banking sector has seen credit growth in both demands by borrowers and supply by the lenders as the economy pick up. The education sector’s participation in the market was almost nil as there were no activities to warrant borrowing, according to the Bank of Uganda.

The annual rate of growth of lending to the personal and household sector, where salary loans fall, was reduced to 18.4 per cent in the four months to October 2021, up from a growth of 19.5 per cent at the end of June.

More stories Click here

URN

Tags: Bank loansBanksSchool reopening
ShareTweetSend
Previous Post

Teachers Struggling to Prepare Content as Abridged Curriculum Delays

Next Post

Bobi Wine cautions supporters against NRM propaganda – FULL speech

admin

admin

Next Post
Bobi Wine supporters

Bobi Wine cautions supporters against NRM propaganda - FULL speech

Leave a Reply Cancel reply

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

  • Trending
  • Comments
  • Latest
Why more Ugandans in diaspora want policy on migrant workers reviewed

UAE stops Issuance of 30-day Visas to Ugandans

October 24, 2022
Kampala Massage

“I have live sex with 18 clients a day” – Kampala massage therapist

October 2, 2022

Muhoozi Promotion is Actually a demotion – Solomon Serwanjja

October 5, 2022
Immaculate Kibekyenga Corruption unit

Anti Corruption unit saves Girl from Saudi Organ Harvest racket

5
4.8 Billion Collected in Traffic Police Operations

4.8 Billion Collected in Traffic Police Operations

3
Doctor on ebola frontline speaks to us annonymously

“We are denied PPE, threatened and intimidated” – Exclusive Interview with a doctor on the Ebola Frontline

3
Regional communications regulators to meet telecoms over roaming calling rates

Regional communications regulators to meet telecoms over roaming calling rates

September 20, 2023
University of London commences work with six African states to help improve children’s health

University of London commences work with six African states to help improve children’s health

September 20, 2023
More guns recovered in Karamoja

More guns recovered in Karamoja

September 1, 2023
ADVERTISEMENT
News 247

Copyright © 2021 24/7 Broadcasting Ltd. [email protected]

  • About
  • Advertise
  • Privacy & Policy
  • Contact

Follow Us

No Result
View All Result
  • Home
  • News
    • Virtual Exhibition
    • Politics
    • Business
    • World
    • Science
  • Tech
    • Apps
    • Gear
    • Mobile
    • Startup
  • Entertainment
    • Music
    • Movie
    • Sports
  • Lifestyle
    • Food
    • Fashion
    • Health
    • Travel
  • Shot Stories
  • Fact Checker

Copyright © 2021 24/7 Broadcasting Ltd. [email protected]