Before deciding to take on a business loan, it’s important to carefully evaluate: financial needs, repayment capacity, and potential benefits and drawbacks.

Businesses persons and individuals who are looking forward to acquire loans in 2025 ought to conduct thorough research, compare loan options, and seek professional advice to make informed decisions.

A loan is an amount received on the condition that will be repaid within a pre-agreed period and according to a pre-agreed schedule in stages or at once, usually along with the accrued interest.

Moreover, Business loans can help a business in many ways, including:

Capital

Business loans can provide the capital needed to start, grow, or expand a business.

Cash flow

Business loans can help manage cash flow fluctuations and cover day-to-day expenses.

Credit history

Timely repayment of a business loan can help build a positive credit history, which can improve a business’s creditworthiness and increase the chances of securing future financing.

Repayment options

Business loans often offer flexible repayment options, allowing borrowers to choose a repayment schedule that aligns with their cash flow.

Marketing

Business loans can help pay for all or part of a business’s marketing budget.

Besides, before you consider taking that loan, from different financial institutions, it’s important to know what each bank is offering

As of December 1, 2024 stanbic Bank’s prime lending rate (PLR) is 19.50%. This rate applies to new and existing retail, business, and commercial clients.

Stanbic Bank’s lending rates vary depending on the client’s credit history. For example, Stanbic Bank’s Oli Sorted campaign offers a special interest rate of 15.5% for women-owned businesses and schools. The campaign also offers SME Business Loans with interest rates starting at 20% p.a.

Stanbic Bank also offers an Instant Cash Advance with a 0% interest rate. This loan has a flexible repayment date and access to funds 24/7 via mobile and internet banking.

Centenary Bank’s lending rates vary depending on the type of loan and the borrower’s status for example:

Micro Business Loan

The interest rate for this loan varies based on the borrower’s length of time as a client. The interest rate is 42% per annum for new borrowers, 34% per annum for second-time borrowers, and 29% per annum for loans above the fourth cycle.

Salary Loan

The interest rate for this loan ranges from 16% to 26% and is negotiable at any branch.

CenteSupawoman GROW Loan

The interest rate for this loan is 8.5% to 10.5%.

Small Business Loan

The interest rate for this loan is 0.67% for new borrowers and 0.5% for existing borrowers

Whereas Standard Chartered’s lending rates for loans are: Local currency loans: 19.3% per annum and Foreign currency loans: 11% per annum.

Standard Chartered also offers fixed deposit (FD) interest rates ranging from 2.75–7.50% per annum for the general public and 2.75–8.00% per annum for senior citizens.

More so , Post bank’s prime lending rate as of December 2024 was 22% and maximum is 60%

Post banks Loans include; Salary Loan. Education Loan. Home & Land Loan; Agriculture Loan. Water and Sanitation Loan. Kyapa Loan; SME Business Loan. Micro Business Loan. Asset financing and many others

Additionally, DFCU Bank’s lending rates vary depending on the type of loan and the campaign: Home loans: 16% per annum for loans in Uganda shillings and 8% per annum for loans in US dollars

Personal secured loans: 16.5% interest rate for purchasing land

Unsecured personal loans: Interest rates as low as 17.5% in the “Ggwa Mu Bintu” campaign

Mobi loans: 10.8% per month interest rate

Small business recovery fund: 10% per annum discounted interest rate on a reducing balance

Charles Ocici the Executive Director for Enterprise Uganda, the country’s leading business management and enterprise institution urged business persons to always endeavor to think twice before taking up loan money and should always remember that money is not yours and should pay it back as agreed.

Borrowing gives the opportunity to finance your goals: start or develop a business, get education, buy or renovate a house, but at the same time it is a very responsible decision.