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Banks Approve Loans Worth Shs869bn In October

The value of loans approved by commercial banks in October declined to Shs869.3bn from Shs1.068Trn the previous month, the Performance of the Economy Monthly report for November 2021 by Ministry of Finance, has revealed.

According to the report, the loan approval accounted for 53.4% of the value of loan requests received in the month compared to an approval rate 55.8% the previous month.

“Lending remains affected by the continued uncertainty due to the lingering effects of the Covid-19 related restrictive measures on economic activity and the expiry of the credit relief measures enacted by the Central Bank,” read in part the report.

The Ministry further revealed that most borrowers are seeking for loans to finance Personal demands noting that Personal Loans and Household loans continued to take the largest share of credit approved in October 2021 at 26.9%, followed by trade (23.0%), Agriculture (14.1%), Manufacturing (12.4%) and Building, Construction and Real Estate (10.6%).

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