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UDB Agricultural Finance

Comprehensive financing solutions for Uganda's agricultural sector

Uganda Development Bank

About UDB Agricultural Finance

Uganda Development Bank (UDB) offers specialized agricultural financing solutions designed to support the growth and development of Uganda's agricultural sector. As the country's national development finance institution, UDB provides medium to long-term financing for projects that contribute to the economic development and social progress of Uganda.

The Agricultural Finance program targets various segments of the agricultural value chain, from primary production to processing and marketing. The bank's agricultural financing is aimed at enhancing productivity, promoting value addition, and improving market access for agricultural products.

Competitive Interest Rates

Below-market interest rates ranging from 10-12% per annum, significantly lower than commercial banks.

Extended Repayment Periods

Long-term financing with repayment periods of up to 15 years, including grace periods of 1-3 years.

Flexible Collateral Requirements

Accepts various forms of collateral including land, equipment, and in some cases, project cash flows.

Technical Assistance

Access to business advisory services, technical support, and capacity building programs.

Loan Details

Loan Amount

UGX 100M - 10B

Interest Rate

10% - 12% p.a.

Loan Term

Up to 15 years

Grace Period

1-3 years

Processing Time

2-3 months

Equity Contribution

Minimum 30%

Required Documentation

Business registration documents
Detailed business plan with financial projections
Audited financial statements (last 3 years)
Tax compliance certificate
Environmental impact assessment (if applicable)
Collateral documentation
Market study and feasibility analysis
Proof of equity contribution
Quick Summary
Key details about UDB Agricultural Finance

Provider

Uganda Development Bank (UDB)

Ideal For

Agribusinesses
Farmers
Processors
Exporters

Minimum Requirements

  • Registered business entity
  • 2+ years in operation
  • 30% equity contribution
  • Viable business plan

Contact

UDB Headquarters, Rwenzori Towers, Plot 6 Nakasero Road, Kampala

Tel: +256 414 355 500

Email: info@udbl.co.ug

Frequently Asked Questions

What types of agricultural projects does UDB finance?

UDB finances a wide range of agricultural projects including primary production, agro-processing, agricultural infrastructure, and marketing initiatives across various value chains.

How long does the application process take?

The application process typically takes 2-3 months from initial application to disbursement, depending on the complexity of the project and completeness of documentation.

Can individual farmers apply for UDB agricultural financing?

UDB primarily finances registered business entities. Individual farmers are encouraged to form cooperatives or register their farming activities as businesses to access UDB financing.

What technical support does UDB provide?

UDB provides business advisory services, capacity building programs, and technical assistance to help borrowers implement their projects successfully and sustainably.

Success Stories

Kiambogo Dairy Cooperative

A dairy cooperative in Western Uganda received UGX 2.5 billion to establish a modern milk processing plant. The project created over 200 jobs and increased income for 1,500 dairy farmers in the region.

Dairy Processing

Eastern Grain Processors Ltd

A grain processing company secured UGX 4 billion to expand its operations, including the installation of modern milling equipment and storage facilities, benefiting thousands of grain farmers.

Grain Processing
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