In Uganda, where women own over 40% of small businesses yet face significant barriers to accessing finance, Equity Bank Uganda has introduced a transformative solution: the Equi-Mama Loan. Launched in 2024, this unsecured loan product targets women aged 18–70, offering loans from UGX 100,000 to UGX 5,000,000 without requiring collateral.
Coupled with free financial and digital literacy training, Equi-Mama Loan leverages technology to empower women entrepreneurs, fostering gender equity and financial inclusion. Accessible through Equity Bank’s *247# USSD platform, this innovation is reshaping the economic landscape for women across Uganda.
Addressing a Critical Gap
Women in Uganda contribute significantly to the economy, yet they face systemic challenges, including limited access to credit due to lack of collateral, cultural biases, and low financial literacy. According to the Uganda Bureau of Statistics, only 15% of women access formal financial services, compared to 22% of men.
Equity Bank recognized this disparity and designed Equi-Mama Loan to bridge the gap, aligning with its mission to promote inclusive finance, as seen in initiatives like the Young Africa Works strategy with the Mastercard Foundation, which targets empowering 4.3 million young Ugandans by 2030.
Equi-Mama Loan stands out by combining accessible financing with education, addressing both financial and knowledge barriers. The product empowers women to start or scale businesses, from market stalls to small retail shops, fostering economic independence and community development.
How Equi-Mama Loan Works
Equi-Mama Loan is designed for simplicity and accessibility, leveraging Equity Bank’s digital infrastructure. Women can apply via the *247# USSD code, making it available to both smartphone and feature phone users—a critical feature in Uganda, where mobile penetration exceeds 70% but smartphone adoption is lower in rural areas.
To qualify, applicants must be Equity Bank account holders, a process streamlined by the bank’s digital account-opening service. The application involves entering basic details, such as business type and income, and selecting a loan amount between UGX 100,000 and UGX 5,000,000.
Unlike traditional loans, Equi-Mama requires no collateral, relying instead on group-based lending models where women form solidarity groups to guarantee each other’s loans. This approach reduces risk while fostering community accountability. Loan approvals, powered by digital credit scoring algorithms, take minutes, analyzing applicants’ transaction histories and repayment potential.
Repayments are flexible, with terms ranging from 3 to 12 months, and interest rates are competitive, typically 1.5–2% per month. Borrowers can repay via the Equity Mobile app, USSD, or Equity’s 8,000 agency banking outlets.
The accompanying financial and digital literacy training is delivered through digital platforms, including virtual workshops and SMS-based modules, covering budgeting, record-keeping, and digital banking. This holistic approach ensures women not only access funds but also develop skills to sustain their businesses.
Technology Driving Empowerment
Equi-Mama Loan is built on Equity Bank’s Eazzy 247 platform, which uses cloud-based systems and secure APIs to ensure reliability and security. Machine learning algorithms assess creditworthiness by analyzing mobile money transactions and account activity, enabling instant decisions without human intervention.
End-to-end encryption protects user data, addressing cybersecurity concerns in Uganda’s growing digital economy. The USSD interface (*247#) ensures inclusivity, allowing women in remote areas with limited internet access to apply and manage loans using basic mobile phones.
The platform’s scalability is evident in its ability to process thousands of applications efficiently, reducing operational costs for Equity Bank. Integration with agency banking further enhances accessibility, as women can deposit or withdraw funds at local Equi-Duuka agents, minimizing the need for branch visits.
