Centenary Bank offers various types of business loans to cater to different needs. If you are unsure which loan is best for your company, familiarizing yourself with the available options can help you make a more informed decision.
You have a variety of alternatives as a business owner when it comes to obtaining funding for your enterprise. Your savings might be used to help your company.
You can discover investors who will give you cash in return for a piece of the company. Alternatively, Centenary Bank is where you can apply for a business loan.
Centenary Bank offers various types of business loans. Here’s a breakdown to help you choose.
Bank Overdraft
This very short-term loan is being used to finance an immediate need for cash.
Features
- The offered minimum amount is UGX 100,000.
- The facility period is a maximum of 12 months
- Repayable with deposits from a reputable account.
- On diminishing balances, interest is assessed as correlated to the main lending rate of the bank.
Requirements
- Payment of loan processing fees
- Financial Card
- Collateral for securing the loan
- Current account with the bank.
- Completed Overdraft facility application form
- Good account turnover
Benefits
- Faster processing speed
- Allows for multiple payments
- Increases the customer’s financial flexibility
Cente Micro Business Loan
The CenteMicro Business loan is a short-term lending program for small businesses that can be used for working capital or other productive purposes.
The Cente Micro Business Loans feature variable repayment terms and can be used to refill stores or buy equipment for operations like grinding mills and other vehicles.
They can also be used to pay for other business expenses including rent, taxes, and utilities.
Features
- Maximum loan amount of up to UGX 50 million.
- Minimum loan amount of UGX 100,000.
- Interest is charged on diminishing balance.
- Plans for regular and flexible payback.
- 3-month minimum loan term
- Maximum 24-month loan term
Requirements
- Current or Savings bank account
- Completed loan application form
- Payment of loan processing fees
- Financial card
- Payment of processing fee
- Inspection of collateral
- Security can be fixed or on movable assets
- The application must be from a resident of the branch’s authorized service area.
- There must be ongoing business operations.
- Guarantees, personal or corporate
Benefits
- An easy and quick method of getting business funding.
- Most low-income individuals and rural poor can afford it.
- Accepted informal loan security.
- Availability of automatic loans.
Cente Lease
This lease product is designed for customers involved in agricultural production, processing, and marketing, as well as those in other industries, such as transportation, trade, education, and small-scale manufacturing.
It is a short- to medium-term finance option that allows for the acquisition of valuable assets and equipment.
In exchange for recurring rentals paid throughout the lease duration, the bank leases goods and equipment to the customer. Once all pre-arranged rent or lease payments have been made, the customer instantly becomes the owner of the asset.
Features
- A minimum lease of 100,000 UGX
- 8 billion UGX is the maximum lease allowed. (VAT inclusive).
- Rate of interest applied to declining balances
- The maximum lease term is five years.
- Where necessary, a flexible grace period is given
Requirements
- Current or savings Bank
- Completed lease application form
- Financial card
- Contribution in cash toward the asset or equipment acquisition
- Valid proof of the lessee’s and the rented item’s identities
- Applicant should be residing in the branch’s specified service region
- Having the necessary business experience
Benefits
- The bank’s primary security is the leased property.
- An attractive interest rate is applied to balances that are declining
- Offers of grace periods are made on an individual basis.
- Flexible terms and schedules for repayment
Cente Youth Loan
The short- to medium-term loan is aimed at Ugandan youth between the ages of 18 and 35 and is intended to finance business expansion.
The loans promote young entrepreneurs’ business endeavors, and the eligible industries include manufacturing, agro-processing, primary agriculture, fisheries, livestock, health, transportation, education, ICT, tourism, construction, printing, and service providers.
Features
- Interest is charged on the declining balance.
- The minimum amount of UGX is 100,000.
- The maximum amount of UGX is 5,000,000 for individuals.
- Minimum loan amount of UGX 500,000 and maximum amount of 25,000,000 for companies and partnerships.
- Maximum loan terms for development loans are 4 years, while for working capital loans, they are 2 years.
- Repayment in regular, equal installments is due on a monthly, bimonthly, quarterly, or staggered basis (including principal and interest), according to the business’s needs and cash flow.
- On a case-by-case basis, a grace period of up to one year is allowed.
Requirements
- Current or Savings Bank account.
- Completed the loan application.
- Payment of loan processing fee.
- Trading license.
- Have an existing company that is at least three months old.
- Must create an account with Centenary Bank or already have one.
If you’re applying as an individual, here are some additional requirements
- Proof of the existence of a business
- Proof of identities such as birth certificate, national ID, passport, voters’ card, utility bill or parents’ bill, Local Council letter, or tenancy agreement.
- Guarantors must be persons of good repute within the local community.
- Financial card
If you’re applying as a company, here are some additional requirements
- Certificate of Incorporation.
- Certified Memorandum and of Association.
- Trading license.
- Financial Cards of Directors.
- Shareholder personal guarantees
If you’re applying as a partnership, here are some additional requirements
- Partnership Deed.
- Financial Cards of Partners.
- Valid identification such as national ID, passport, voters card
Benefits
- Provides funding to young people so they can expand their enterprises and create jobs.
- Less burdensome terms and conditions than those for regular loans.
- Low-interest rate, but not very low.
- Processing loans easily.
CenteSME or Corporate Business Loans
These are loans given to SMEs and corporate organizations operating in a range of industries and sectors, such as trade, transport, communication, industry/manufacturing, and agriculture (animal husbandry, fishery, crop finance, government sector, building/construction, and service sectors).
The loans can be used to finance working capital, the purchase of company assets, and the development of infrastructure.
Features
- A maximum loan amount of UGX 20 billion.
- Ten years is the maximum loan term; there is no set minimum.
- The rate of interest applied to a decreasing balance
- Repayment schedule and frequency decided upon by each customer
- Grace periods of up to 12 months, depending on the circumstances.
Requirements
- Application and Supportive documents.
- Current or Savings Bank account.
- Completed loan application form.
- Payment of loan processing fees.
- Memorandum and Articles of Association or Partnership Deed.
- Company profile.
- Registered borrowing resolution.
- Financial card.
- Certificate of registration/incorporation.
- Financial statements for at least the last 3 years (including Balance Sheet, Profit, and Loss Accounts) audited by a registered and practicing CPA firm.
- Projected cash flow statement.
- Statement of Assets and Liabilities that is less than three months old.
- A copy of the title deed or any other assets being used as collateral.
- A copy of the bank-approved valuers’ valuation report, which must be dated no more than four years after the application date.
- Curriculum vitae of the business owner, partners, directors, and guarantees.
- Last year’s worth of bank statements.
- Whenever applicable, approved blueprints and bills of quantities for construction projects.
- A license that is appropriate for the work being done.
- To finance government institutions or educational institutions, the competent Ministry has authorized permission to borrow.
- Pro forma invoices for the purchase of machinery/equipment or vehicles.
- Site visits for the commercial properties and those being offered as security are required (include pictures).
- Local Purchase Orders.
Benefits
- The quicker and simpler way to get company funding
- Favorable interest rates
- Plans for flexible repayment
- Multiple payments may be made.
- Availability of automatic loans
Conclusion
Your business may be able to acquire the money it needs from a small business loan to launch, grow, or pay ongoing costs.
If you’re unsure whether applying for a Centenary Bank business loan is the best course of action for your company, take a look at some of the examples we’ve provided in this post.
