Financial firm ventures into education loans

19 Jan 2018
Kampala. In a bid to enhance literacy, Letshego Uganda has launched the Edu Solutions loan product designed to provide financial support to players in the education value chain.
Speaking at the launch in Kampala on Monday, Letshego chief executive officer Geoffrey Kitakule said the product will not only help ensure good quality education in schools but also help in financing various school projects.
“It is a product packaged for school owners, staff, students, suppliers, parents and guardians with a wide range of solutions including asset financing, salary loans, school fees loans, microfinance loans and set up loans,” he said.
Mr Kitakule added that he expects Edu Solutions loan to improve lives by ensuring provision and access to good quality education which is in line with the government of Uganda’s second National Development Plan (NDP11) goal that emphasises quality education and skills development.
“We are targeting to lend out Shs15 billion this year but with close assessment of the clients’ ability to pay. In a bid to curb loan defaulting, we will price the loans in a manner that meets the clients’ cash flow.”
Mr Giles Aijukwe, the business development manager Letshego Uganda, attributed the move of launching the product to constant sidelining of education institutions by financial bodies in giving loans.
“Commercial banks are often too focused on financing corporate clients and high worth individuals with tangible collateral leaving out education institutions which would equally be a good consideration,” he said.
By Godfrey Lugaaju