Housing Finance Bank main branch in Kololo
Brian Kalaki’s search for an agricultural loan from Housing Finance Bank has turned into a costly lesson in frustration, delays and broken expectations.
Since May 2025, the farmer says he has spent at least Shs 12 million processing the facility, yet he has not received either a rejection or an offer letter, even as repeated assurances have led to heavy business losses.
“I have pursued an agricultural loan facility from Housing Finance Bank since May 2025. The cost of processing the loan has costed me at least 12m UGX. I still have never gotten a rejection or an offer letter. On top of assurances that have in turn resulted to huge business losses. There is a problem with that Bank. I actually thought the issue was with my RM but it looks like a management problem. As frustrating as it has been for me, I have made peace with it but still shocked by how a whole government bank can have such conduct characterised by delay, poor communication, and a lot of unprofessional conduct. We go to banks to get capitalised but in process we end up losing money instead.”
The Bank is yet to comment on the matter.
About the loan
The Uganda Agricultural Credit Facility (ACF) is a government-backed program administered by the Bank of Uganda to provide affordable financing. Key features include loans up to UGX 5 billion, fixed interest rates capped at 12% to 15%, and repayment terms reaching 8 years
Loan Terms and Features
- Loan Amount: Up to UGX 5 billion for standard projects; up to UGX 10 billion for grain trade and related capital expenditures.
- Interest Rates: Fixed at up to 12% per year for agriculture and agro-processing, and up to 15% per year for grain trade.
- Repayment Period: Up to 8 years for general projects, and up to 24 months for grain trade.
- Grace Period: Up to 3 years for long-term projects (not applied to grain trade).
- Processing Fees: Capped at a maximum of 0.5%
Eligible Activities and Exclusions
- Supported Projects: Farm mechanization, agro-processing machinery, post-harvest handling structures, biological assets, valley dams, fencing, and working capital for grain trades.
- Exclusions: The facility does not finance the purchase of land or tree planting
How to Apply
- Where to Apply: Applications must be submitted through any Participating Financial Institution (such as commercial banks, credit institutions, micro-finance deposit-taking institutions, Uganda Development Bank, or supervised SACCOs)
Collateral Alternative: For loans of UGX 20 million or less, alternative security options like cash flows or chattel security may be accepted by lenders.
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