Grapevine

Agriculture sector registeres highest lending rate

The Bank of Uganda's annual report for the 2023/24 financial year has shed light on lending rates across various sectors. Agriculture topped the list with a lending rate of 21.5 per cent, primarily due to high risks associated with the sector.

"The Transport and Communications sector enjoyed the lowest interest rates at 13.2 per cent, attributable to the predominance of prime borrowers within this sector," the report states.

Building, mortgages, construction, and real estate followed closely with a lending rate of 20.1 per cent, while personal and household loans stood at 18.6 per cent. The manufacturing sector's average lending rate was 16.9 per cent, and trade recorded a rate of 17.3 per cent.

According to the Bank of Uganda, varying interest rates across sectors can be attributed to differences in risk profiles.

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