By Maria Mariam Namala
KAMPALA — Pride Bank has launched a new financing product aimed at helping private schools, tertiary institutions and religious organisations meet operational expenses while waiting for tuition and other revenues to be collected.
The new Bridge Finance Facility, unveiled on Monday in Bukoto, is designed to provide short-term working capital to institutions experiencing temporary cash flow gaps during school terms.
Under the programme, eligible institutions can access loans ranging from Shs5 million to Shs1 billion, with repayment schedules aligned to the academic calendar and timed to coincide with school fee collections.
According to the bank, many schools face financial pressure because operating costs such as staff salaries, utility bills, maintenance and learning materials must be paid throughout the term, while tuition fees are often received in instalments.
The facility is intended to help institutions maintain smooth operations without disrupting learning activities due to temporary shortages of cash.
Loan repayment periods will range from one month to five years, depending on the purpose of the financing. The funds can be used to meet recurrent expenses, purchase equipment and furniture, or finance infrastructure projects including classrooms, dormitories and libraries.
The bank also extended the product to religious institutions, which may qualify for financing based on their offertory collections. Such facilities will have repayment periods of up to 12 months.
To qualify for the loans, applicants must maintain an account with Pride Bank, enrol on the bank’s School Pay digital fee collection platform, demonstrate a consistent history of fee collections and provide the necessary registration and governance documentation.
The bank said lending decisions will place greater emphasis on an institution’s cash flow and ability to generate revenue rather than relying solely on traditional collateral requirements.
Speaking during the launch, Timothy Asingya, Relationship Manager for Small and Medium Enterprises at Pride Bank, said the product was developed in response to the financial challenges commonly experienced by education institutions.
He noted that improving schools’ access to working capital would enable administrators to concentrate on delivering quality education instead of struggling with short-term financing needs.
Joseph Lwanga Mugerwa Kiggundu, the bank’s Manager for Agribusiness and Green Finance, said the bridge financing facility forms part of a broader package of financial solutions tailored for the education sector.
These include school fees loans for parents, salary processing services, financing for teachers and savings products designed for students.
Pride Bank, which attained Tier II commercial banking status following approval by the Bank of Uganda in November 2025, said the new facility reflects its strategy of developing specialised financial products to support key sectors of Uganda’s economy.