Advertisement

UBA sets aside 13bn/- for SMEs lending

United Bank for Africa (UBA) Tanzania has set aside 13bn/- for lending Small and Medium Entreprises (SMEs) in order to expand their business and contribution to economic development.

UBA Tanzania Managing Director, Mr Gbenga Makinde said in Dar es Salaam yesterday during the SMEs soft loan scheme dubbed ‘Mkopo Kitonga’ that the minimum amount for loaning is 6m/- and 300m/- highest.

“There is no doubt that the growth of the SME sector is crucial to the sustainable development of economies across Africa,” he said adding it represents a great opportunity for commercial banks like UBA to facilitate a more resilient and diversified economy in Tanzania.

Advertisement

He said UBA has keyed into the various initiatives of the Tanzania government and the Bank of Tanzania (BoT) by providing the desired financing structures for the SMEs towards a greater future for youthful population.

He said one of the criteria for accessing the loan is to register the business as private entity, partnership or company and the applicant must produce bank account information for 12 months and for UBA must be at least three months.

The applicant business must be operational for at least 24 months, bank account information and must have collateral.

The Investment, Industry and Trade Deputy Minister, Exaud Kigahe urged SMEs to register their business in order to take advantage of the UBA loan scheme and boost their businesses.

He said the government is aware of the challenges that SMEs face in registering their businesses and that efforts are in place to improve business environment including putting one stop centre.

He commended UBA bank for the initiative aimed at boosting SMEs activities and contributions to economic growth.

On his part, UBA Loan Manager, Peter Temu said the targeted business are those related to goods distribution, wholesale and retail, traders dealing with energy equipment, legal experts, accounting and auditing firms.

51 comments

Comments are closed.