Stanbic Bank has signed a partnership with the ministry of health which will see the bank offer a range of low interest loans to health workers across the country.
The loans range from personal unsecured salary loans to secured loans, mortgages, vehicle and asset financing loans, said Anne Juuko, Stanbic Bank Chief Executive at the launch of the partnership event held at the Ministry of Health Headquarters in Kampala on Oct.18.
Health workers will be entitled to open an everyday banking account which attracts no monthly charges. However, workers with existing and different accounts in the bank shall have the option to change their accounts to the everyday banking account at no cost.
The bank will charge zero/no arrangement/processing fees for all health workers seeking to top up or take new loans with Stanbic Bank.
Juuko said, the lending rate for all government health workers will be the bank's prime lending minus 0.5% or 15.5% p.a. on reducing balance.
The bank's prime lending rate is currently at 16%, but can be subject to change in line with prevailing market conditions.
This rate will apply to all health workers wishing to top up their existing loans or new clients/health workers who wish to take new loans or transfer their loans to Stanbic Bank.
People who qualify for the loans include employees of the Ministry of Health, employees employed as medical/health workers and those employees who have been posted and have reported to a health facility as their duty station.
Given the continuing impact of the Covid-19 pandemic, the bank through a reputable insurance provider, will also provide hospitalisation support for health workers who might be admitted with the disease.
The partnership also has offering for insurance which will provide some financial relief for those health workers admitted with Covid-19.
There will be a daily allowance of up to Shs200,000 per night for a duration of 20 nights, however, this specific offer will last until December 2021.
In the unfortunate case of death of the health worker, a funeral cash benefit of up to Shs2million will be paid to the next of kin to support with the funeral arrangements.
Another benefit for the health workers from the partnership includes financial literacy training and advisory through the Stanbic Bank Incubator. They will undergo customized programmes structured to support their financial journey and achieving financial freedom.
The bank will use its digital solutions like Flexipay - an integrated merchant and wallet solution - to help health workers make payments as well as receive cash at various points across the country using their phones.
Juuko (Stanbic Bank CE) said, this new proposition is in line with the bank's commitment to serve Ugandans by supporting individuals who have been most adversely affected by coronavirus pandemic.
"We firmly believe that this is the first among many milestones we shall and can achieve for the health workers across the country," Juuko said, "it is also in line with our purpose, Uganda is our home, we drive her growth."
The Permanent Secretary for the Ministry of Health Dr Diana Atwine, applauded the bank for coming up with these subsidized financial service offers for health workers who, she said, have tirelessly been on the frontline to save lives during the pandemic.
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