Finance Minister, Maria Kiwanuka has announced that the government together with three Commercial Banks are to fix the interest rate charged on youth money at 15 per cent for a period of six months from today.
Ms Kiwanuka has revealed this at the Ministry Headquarters where she has today officially signed the Memorandum of Understanding with Centenary Bank, dfcu and Stanbic managers in a partnership deal that potentially paves way for the unemployed youth to access the Shs25billion in the 2011/12 budget.
Explaining the eligibility criteria, the Minister said the loan will be available for only first time borrowers with a minimum O’level qualification. The Minister said the money will be paid back within four years with a grace period of one year. Individuals with registered business between 18-30 years old can borrow up to Shs5million and up to Shs25million for companies with at least five eligible shareholders.
In the 2011/12 Budget, the government announced the Youth Entrepreneurship Venture Capital Funds to help the jobless youth. However, halfway into the financial year, the youth have not yet received the money- prompting some youth representatives in Parliament to threaten a naked demo.
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