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Agricultural Credit Facility
Terms and Conditions of Sub-Loans
The terms and conditions of the scheme are stated in the MoU and the subsequent addenda. Sub-loan amounts are determined on the basis of assessment and appraisal of project viability and genuine credit needs of the clients in accordance with the lending policy of the respective PFIs. The loans under the ACF are denominated in Uganda shillings.
The maximum loan amount to a single borrower is UGX 2.1 billion. However, this amount can be increased up to UGX 5 billion on a case by case basis (for eligible projects that add significant value to the Agriculture sector and the economy as a whole). The minimum loan amount BoU can re-imburse a PFI is UGX 10 million although there is no minimum loan amount to the final borrowers.
The maximum loan period should not exceed 8 years and the minimum should be 6 months.
The grace period is up to a maximum of 3 years.
The interest rate to the final borrower is up to a maximum of 12% per annum. The 50% GoU contribution is disbursed to the PFIs at zero Interest (interest free).
Facility fees charged by PFIs to eligible borrowers should not exceed 0.5 percent of the total loan amount. Legal documentation and registration costs are borne by the borrower.
The primary security for the credit facilities is the machinery and equipment financed, where applicable, and any other marketable securities provided by the borrower/final beneficiary. PFIs may seek additional security based on their evaluation of the risk profile of the project being financed.
Eligible purposes include activities that include; commercialisation, modernisation, mechanisation and value addition in the agricultural sector at any stage of the value chain.
Eligible projects include acquisition of agricultural and agro-processing machinery and equipment, post-harvest handling equipment, expansion of the farm that may include purchase of biological assets, storage facilities, agro processing and any other related agricultural and agro-processing machinery and equipment. Agricultural inputs required for primary production as well as other working capital requirements are considered provided this component does not exceed 20 percent of the total project cost for each eligible borrower.
- Central Bank Rate (CBR)
|June 2019||August 2019|
|June 2019||July 2019|
|Food Crops & Related Items||-3.7||-0.8|
- Exchange Rates
- August 16, 2019
- Financial News Report
|July 17, 2019||July 24, 2019|
|T/Bills (91 days)||9.74||9.74|
|T/Bills (182 days)||10.80||10.80|
|T/Bills (364 days)||11.43||11.43|
|T/Bonds (2 years)||12.85||12.85|
|T/Bonds (3 years)||13.80||13.80|
|T/Bonds (5 years)||15.05||15.05|
|T/Bonds (10 years)||15.95||15.95|
|T/Bonds (15 years)||14.35||14.35|
- Commercial Bank Rates
|May 2019||June 2019|
|Time Deposit Rate||10.48||9.98|