LOAN PRODUCTS
UPSTU MEMBERS’ SACCO PRODUCTS- REVIEWED 28th APRIL 2025
| LOAN TYPE | LOAN PRODUCTS | Product Features | Pricing | Requirements |
| Emergency Loans/ Quick Loans. | Emergency Loans For urgent and unforeseen financial needs ie school fees, hospital bills etc. | Loan Amount above Ugx. 1,000,000 to Max. Ugx. 5,000,000Loan Term: upto11 monthsCollateral: shares and savings plus guarantorsRepayment Mode: MonthlyGrace period: 0 | Interest Rate: 3% per month flat rateProcessing Fee. 50,000Insurance fee. 1% of the loan amount | Filled loan application formCopy of National ID2passport size photosSavings and shares2Credible guarantors Note. Borrower’s savings, shares plus guarantor’s savings and shares should be able to cover the loan amount approved. |
| Micron Loans | As per breakdown in Retail Loans These are small loans to support micro enterprises or personal needs | Loan Amount Min Ugx. 1,00,000 to Max. Ugx. 1,000,000Loan Term: upto11 monthsCollateral: shares and savings plus guarantorsRepayment Mode: MonthlyGrace period: 0 | Interest Rate:3% per month flat rateProcessing Fee. 50,000 Insurance fee. 1% of the loan amount | Filled loan application formCopy of National ID2passport size photosSavings and shares2Credible guarantors Note. Borrower’s savings, shares plus guarantor’s savings and shares should be able to cover the loan amount approved. |
| Retail Loans | ||||
| Business Loans This is a loan product targeting members engaged in business activities or planning to start. The loan can be used to finance working capital needs or acquisition of business assets and expansion. | Maximum Loan amount of up to UGX 100MillionMaximum loan period of up to 3 yearsLoans above UGX 50m to be secured by tangible collateralLoan size is based on capacity to pay and collateral valueBusiness cashflow to be assessed. | Interest rate of 13% per annumProcessing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | Members’ savings and share capitalCapacity to pay backTrading License and business recordsBusiness Rental receipts to prove ownershipIntegrity of the prospective loan applicantMembership, Qualification for a loan requires one to have saved with SACCO for (6) months from the date of joining the SACCO and in addition, to have purchased at least fifty (50) share.Bank Statement showing the last 6 months salary deposits is a must. Must have a minimum of 2 guarantorsMust present a passport photo and copy of national IDProvide 3 most recent payslipsProvide copy of appointment letterRecommendation from the regional chairperson. | |
| Agricultural Loans This is a loan product designed to target members who want to finance agriculture production and agri business like; diary, poultry, piggery, fishing, fish farming, coffee farming, Banana and bee keeping etc. | Maximum amount of up to UGX 50MillionMaximum loan period of up to 3 yearsLoans above UGX 50m to be secured by tangible collateralLoan size is based on capacity to pay and collateral valueAgric activity cashflow to be assessed.Conditions: Must demonstrate agricultural experience | Interest rate of 13% per annumProcessing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | Members’ savings and share capitalCapacity to pay backIntegrity of the prospective loan applicantMembership, Qualification for a loan requires one to have saved with SACCO for (3) months from the date of joining the SACCO and in addition, to have purchased at least ten (50) sharesBank Statement, Bank statement showing the last six months salary deposits is a must. This is to help determine the member’s capacity to repay the loan if granted.Must have a minimum of 2 guarantorsMust present a passport photo and copy of national IDProvide 3 most recent payslipsProvide copy of appointment letterRecommendation from the regional chairperson.Demonstrate experience of farming with records. | |
| Development Loans For larger scale personal or community development projects. | Min. Loan: UGX 20,000,000Max. Loan: UGX 100,000,000Loan Term: Up to 5yearsLoan Size: Up to 80% of project costLoans above UGX 50m to be secured by tangible collateralCollateral: Project assets, land titleConditions: Feasibility study and environmental impact assessment required | Interest rate of 13% per annumProcessing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | Members’ savings and share capitalCapacity to pay backIntegrity of the prospective loan applicantMembership, Qualification for a loan requires one to have saved with SACCO for (3) months from the date of joining the SACCO and in addition, to have purchased at least ten (50) shareBank Statement, Bank statement showing the last six months salary deposits is a must. This is to help determine the member’s capacity to repay the loan if granted.Must have a minimum of 2 guarantorsMust present a passport photo and copy of national IDProvide 3 most recent payslipsProvide copy of appointment letterRecommendation from the regional chairperson.Demonstrate experience of farming with records.Project plan | |
| Asset Finance Loan For purchasing specific items or assets. | Max. Loan: UGX 100,000,000Loan Term: Up to 5 yearsLoan Size: Up to 90% of the value of the itemBorrowers’ contribution of 10% of the value of the itemCollateral: Item being purchased | Interest rate of 13% per annumProcessing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | Inspection of Asset to financeValuation of Asset, if it is collateralProvide invoice/ quotation of itemProof of payment of contributionAdditional requirements as above | |
| Home Loans This is a loan product designed for members who want to construct buildings or complete houses or purchase both commercial and residential houses. | Maximum loan of up to UGX 150MBorrowers contribution of 20% of the project valueRepayment period of up to 5 yearsLoan size, upto 90% of the property valueCollateral, mortgage propertyLoan amount beyond Ugx.50m to be secured by tangible collateralMonthly repayments | Interest rate of 13% per annumProcessing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | Members’ savings and share capitalCapacity to pay backBuilding plans and stages of construction in case of constructionIntegrity of the prospective loan applicantMembership, Qualification for a loan requires one to have saved with SACCO for six (3) months from the date of joining the SACCO and in addition, to have purchased at least ten (50) shareBank Statement, Bank statement showing the last six months salary deposits is a must. This is to help determine the member’s capacity to repay the loan if granted.Must have a minimum of 2 guarantorsMust present a passport photo and copy of national IDProvide 3 most recent payslipsProvide copy of appointment letterRecommendation from the regional chairperson. | |
| Corporate Loans For those with corporate saving account. | Min. Loan: UGX 10,000,000Max. Loan: UGX 1,000,000,000Loan Term: 1-5 yearsLoan Size: Based on corporate saving account Collateral: Shares above 100, Financial discipline, guarantors and stable flow of income or salaryLoans above UGX 50m to be secured by tangible collateralConditions: Substantive financial records required | Interest Rate: 3-5% p.a.Processing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | As above | |
| Education Loan This is a loan product designed for members who want to further their education. The loan products include school fees loan, school improvement loans, purchase of scholastic materials and other financing need related to education. It also include school fees for dependants. | Maximum amount of up to UGX 50MillionMaximum loan period of up to 3 yearsCollateral may be asked depending on the loan amountLoan size is based on capacity to pay and collateral value | Interest rate of 13% per annumProcessing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | School Admission letter School circularAs above | |
| Group Loans | This product is designed for members with already established group and would want to access a loan facility as a group. | Maximum amount of up to UGX 50MillionMaximum loan period of up to 3 yearsCollateral may be asked depending on the loan amount and risk appetiteLoan size, 2 times the group’s share capitalLoan is advanced to the group | Interest rate of 13% per annumProcessing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | Group must have been in existence for atleast 2yearsGroup must have a minimum of 100 shares with SACCOGroup Must demonstrate a clear risk management modelGroup constitution fully signed by all membersMembers guarantee and undertakingGroup executive committeeMinutes and resolution to borrowIf registered, provide a certificate of registrationRecommendation from the school head teacher Group shall sign an MOU with the SACCO executive. |
| Staff Loans | Staff Emergency Unsecured Loans This is loan product designed for access by UPSTU and Sacco staff for emergency needs. | Maximum amount of up to UGX 5MillionMaximum loan period of up to 11monthsLoan Size: 3 shares plus 1* savings held with the group.Loans shall be to only confirmed staff.For only staff with a clean recordCan be accessed alongside a salary loan | Interest rate of 2% per monthProcessing fee 50,000Insurance fee of 1% of the loan amount | Appointment letterRecommendation from the General Secretary for Union staff.Proof of Salary Payment for the most recent 2monthsLien and set off agreement over the staff savings and shares with the secretariate group to which the staff belong.2 guarantors from the groupRecommendation from the group executive. |
| Staff unsecured Salary Loan This loan product designed for UPSTU and Sacco staff given against their salary for development needs. | Maximum amount of up to UGX 25MillionMaximum loan period of up to 24monthsLoan Size: 50% of net pay * 24monthsLoans shall be to only confirmed staff.For only staff with a clean record | Interest rate of 13% per annumProcessing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | Appointment letterRecommendation from the General Secretary for Union staff.Filled loan application form2 Guarantors including, 1 family members and 1 staffLien and set off agreement over the staff savings and shares with the secretariate group to which the staff belong. | |
| Staff Secured Salary Loan This loan product designed for UPSTU and Sacco staff who may want to access large amounts for funding their personal development activities ie purchase of land, construction, car purchase, business establishment or expansion etc. | Maximum amount of up to UGX 100MillionMaximum loan period of up to 5 yearsMaximum Loan amount is dependent on the staff monthly salary and capacity to pay. Shall be 50% net pay * number of months applied but not exceeding 60months.Loan Size: based on the collateral forced sale value, FSVLoans shall be to only confirmed staff.Security: Land title- 5years and Car logbooks- 3years | Interest rate of 13% per annumProcessing fee of 1% of the loan amountInsurance fee of 1% of the loan amount | Appointment letterRecommendation from the General Secretary for Union staff.Filled loan application form3 Guarantors including, 2 family members and 1 staffLien and set off agreement over the staff savings and shares with the secretariate group to which the staff belong.Land title or carlogbookValuation report by professional valuersProperty inspection report by SACCO managerProof of other incomes if availableVisit report for home and family guarantorsLoan Offer and mortgage documents signedMortgage registration at Land registry in favor of the SACCOCaveate registration on logbook with URA in favor of the SACCO |
NB:
- Acceptable collateral includes Land titles and carlogbooks
- For all secured lending, valuation of the property shall be done by professional valuers approved by the sacco management.
- All security related costs shall be met by the borrower.
- See policy guidelines for secured and unsecured lending.
- In case of other additional sources of income, these shall be verified and supported by documentation to back up the loan file.
- Annual interest is on reducing balance