Business
Loan approvals by Ugandan banks fell in June — report
The July 2026 Performance of the Economy report by the finance ministry says the approval rate of 63.2% was down from 73.8% in May 2026 but remained higher than the 61.3% recorded in June 2025.
Financial experts say borrowers must complete the credit approval process to qualify for a loan. (Photo generated using AI)
By: Umaru Kashaka, Journalist @New Vision
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Uganda’s lending institutions approved sh2.076 trillion out of sh3.286 trillion in loan applications in June 2026, translating into an approval rate of 63.2 percent, official figures show.
The July 2026 Performance of the Economy report by the finance ministry says the approval rate of 63.2% was down from 73.8% in May 2026 but remained higher than the 61.3% recorded in June 2025.
In June 2026, personal and household loans accounted for the largest share of credit disbursements, taking up 38.3% (sh794.9 billion) of total approvals.
Of this amount, sh186.4 billion was electronic money credit (mobile money loans).
Other major recipients of credit included trade at 15.6% (sh324.4 billion), agriculture at 11.3% (sh233.7 billion), business, community, social and other services at 11.2% (sh233.2 billion), building, mortgage, construction and real estate at 10.1% (sh210.7 billion), and transport, communication, electricity and water at 8.5% (sh176.6 billion).
Of this amount, sh186.4 billion was electronic money credit (mobile money loans).
Other major recipients of credit included trade at 15.6% (sh324.4 billion), agriculture at 11.3% (sh233.7 billion), business, community, social and other services at 11.2% (sh233.2 billion), building, mortgage, construction and real estate at 10.1% (sh210.7 billion), and transport, communication, electricity and water at 8.5% (sh176.6 billion).
Financial experts say borrowers must complete the credit approval process to qualify for a loan.
They say that through this process, a lender assesses the ability and willingness of a borrower to fully repay a loan, including interest and principal, on time.
Any loan extended by a financial institution is subject to this process to manage the lender’s level of risk exposure.
Experts also say low borrowing means dismal investment, fewer jobs and lower tax revenues.
They say that through this process, a lender assesses the ability and willingness of a borrower to fully repay a loan, including interest and principal, on time.
Any loan extended by a financial institution is subject to this process to manage the lender’s level of risk exposure.
Experts also say low borrowing means dismal investment, fewer jobs and lower tax revenues.