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Pride Bank Limited has introduced a new Sacco and Investment Club product that promises to boost savings groups and investment clubs in Uganda by giving them easier access to credit. The scheme is designed to strengthen financial inclusion, empower communities, and encourage collective growth as part of Uganda’s wider economic development goals.
With the new package, borrowers can now access loans starting from any amount up to Shs48 billion, repayable within five years on a reducing balance basis. This is expected to ease challenges that savings and credit cooperative organizations (Saccos) and investment clubs have faced for years when dealing with commercial banks. Most Saccos often find it difficult to secure timely loans, and even when funds are available, high interest rates and delays reduce the benefits for their members.
At the launch in Mbarara, Sacco leaders welcomed the initiative but also highlighted areas that need improvement. Amon Namara, General Manager of Muhame Financial Services, said while the product is a welcome development, Pride Bank must work on shortening turnaround times if it wants to make the product more attractive.
Elizabeth Namaganda, Head of Marketing and Communications at Pride Bank, explained that this innovation follows the bank’s transition from a microfinance deposit-taking institution to a fully-fledged commercial bank. She said the Sacco and Investment Club product is part of a broader plan to introduce more financial services that support community growth. According to her, the product is open to Saccos, village savings and loan associations, rotating savings and credit groups, and investment clubs. It offers structured savings, affordable credit, and additional business development support.
Saccol leaders also stressed that competitive interest rates will be key to ensuring the product’s success. Turtamureba Paul Kahigi, Chairman of Kyamuhunga People’s Sacco (KYAPS), pointed out that Pride Bank must ensure loans are given on a reducing balance, unlike other commercial banks that charge fixed interest rates which burden borrowers.
To qualify for these loans, applicants—whether individuals or Saccos—must meet strict conditions. They need to own at least 50 acres of land, be registered as a company, and be actively engaged in grain production. These requirements, according to some leaders, could limit access for smaller groups that are not heavily involved in commercial farming.
During the event, Gerald Tukamuhebwa, Deputy Resident City Commissioner for Mbarara City South, praised Pride Bank for the innovation but also urged management to review its conditions to serve borrowers better. He echoed the concerns of Sacco leaders and advised that the bank must strike a balance between protecting its funds and ensuring access for small community groups.
“I have been listening attentively to what these Sacco leaders have said. I hope when you go back, you review and ensure their concerns are addressed,” Tukamuhebwa said. He also encouraged beneficiaries to use the loans responsibly for business growth and community empowerment.
The launch of the Sacco and Investment Club loan product comes at a time when Uganda is pushing for deeper financial inclusion and stronger community-based economic structures. Experts say that access to affordable and timely credit is one of the biggest challenges holding back Saccos and rural investment groups. With Pride Bank stepping in, there is hope that savings and lending associations will now be able to lend to their members more quickly, expand their operations, and reduce overreliance on expensive commercial loans.
The new product also signals Pride Bank’s ambition to position itself as a key player in Uganda’s financial sector. By targeting Saccos and investment clubs, the bank is tapping into a growing segment that directly supports rural communities and grassroots economic activities. If properly implemented, this initiative could empower farmers, traders, and local entrepreneurs to scale up their businesses and contribute more strongly to Uganda’s economic growth.
