Pride Bank deploys SME credit line to capture Teso market share

SOROTI, Uganda — Pride Bank has rolled out a new credit facility in the Teso sub-region targeting small and medium enterprises, looking to capture market share among underserved women and youth-owned ventures.

The launch of the GROW Loan in Soroti comes as commercial lenders face increasing pressure to deploy affordable credit to rural enterprises, which form the backbone of Uganda’s informal economy but remain locked out by high collateral requirements.

Local businesses in Soroti and the wider Teso region heavily rely on agriculture, cross-border trade, transport, and agro-processing, yet they frequently struggle with limited working capital and rigid debt structures.

Pride Bank Managing Director Veronica Namagembe acknowledged these structural barriers, noting that the new product is designed to lower entry thresholds for borrowers who traditionally fail risk assessments in mainstream commercial banking.

“Many entrepreneurs face challenges related to limited access to affordable credit, high collateral requirements, and financial products that do not adequately reflect the realities of growing businesses,” Namagembe said during the product rollout. “Through this initiative, we are intentionally working to close that gap.”

The bank aims to bundle the credit lines with mandatory financial literacy and capacity-building programs, a move intended to curb the high non-performing loan ratios that often plague microfinance and SME lending in rural districts.

The commercial viability and governance framework of the product received backing from the institution’s board, which is banking on structured regional expansions to drive loan portfolio growth.

“Access to affordable and reliable financing remains one of the most significant barriers facing entrepreneurs and small business owners today,” said Joshua Atwine, Pride Bank board representative. “This facility is intended to bridge that financing gap by providing accessible, structured, and reliable funding.”

To drive adoption against competing microfinance institutions and mobile money lending platforms in eastern Uganda, the bank has adjusted its internal credit approval processes.

Joseph Feta, Business Head at Pride Bank, emphasized that regional expansion must align with tangible economic outcomes for the target market rather than just expanding the bank’s footprint.

“Our focus is to ensure that every expansion we make translates into real, measurable impact in the communities we serve,” Feta said, noting that streamlined terms will ensure faster turnaround times and reduce loan processing delays for applicants on the ground.