Stanbic Bank Uganda has announced a new effort aimed at revitalising the operations for Savings and Credit Cooperative Organisations (SACCOs) and Village Savings and Loans Associations (VSLAs) across Uganda.
The bank plans to reach out to SACCOs registered by the Ministry of Trade Industry and Cooperatives as well as VSLAs regulated by the Ministry of Gender, Labour and Social Development.
Beneficiaries of this service will be given the option to create a SACCO account, the Society Account, according to officials. Free cash and check deposits, free transfers into the account from members, and free cash withdrawals will all be available.
The account also comes with free internet banking, no monthly administration fees, tiered interest on balances over Shs10 million, financial literacy training for both management and chosen members, and participation in capacity building programs at the Stanbic business incubator.
Emma Mugisha, the head of Client Solutions at Stanbic Bank said the move will help make SACCOs and VSLAs more appealing to their members and other stakeholders by giving greater focus on three key areas namely, lending, investments and savings.
“The Stanbic proposition will enable SACCOs and VSLAs to access loans so that they in turn can lend to their members and create opportunities for growth and social economic transformation. It will also support financial inclusion drives in the country,” said Mugisha.
In addition, Stanbic is offering a reduced 12.5 percent interest rate on unsecured term loans of up to Shs200 million with a maximum duration of 12 months. A secured term loan of up to Shs1.5 billion with a maximum tenure of 12 to 36 months is now another possibility.
Officials said the bank will provide core banking capabilities such as savings account management, credit and cash management, back-office accounting and financial reporting, deposit/withdrawals from the SACCO account, and more through a platform dubbed ‘Mobis,’ which is a microfinance platform used by SACCOs.