• The targeted markets for lending will be defined by:
• Business sector
• Industry segments
• Salary and pension Earners
• Customer types
• Loan facilities

Business sectors will cover the following sub-sectors by definition.

1. Agricultural loans:
   This covers fishing, crop production, purchase of tractors and implements, poultry and diary farming.
2. Trade and commerce:
   All loans for general merchandise, wholesale and retail trade, petroleum products, beverages and cigarettes etc.
3. Manufacturing/Industry:
   Loans for provision of working capital and bridging finance to cater for purchase of raw material and spares for manufacturing.
4. Transport:
   Loan for purchase of motor vehicles, buses, and lorries for rental hire.
5. Building & construction:
   Bridge financing for contractors and construction firms undertaking large construction projects for reputable companies.
6. Mortgage finance:
   Loans for completion of houses and construction firms undertaking large projects for reputable companies.
7. Services:
   Loans to bridge finance, hotels, schools and government departments.

1. Transportation:
• Buses and Lorries: Financing not exceeding of total cost.
• Repayment not to exceed 2 years.
• Minibuses: exceptional cases due to crowded market
2. Wholesale & retail general merchandise:
   • Should consider financing specific transactions
   • Facilities should not exceed 18 months except in very special cases.
   • Financing up to 60% of value for specific transactions or 3 to 6 months supplies
   • No retail merchandise financing due to high risk and low profit margin.
3. Beer and Soda:
   
   • Financing working capital especially during festive seasons.
4. Fuel and Petroleum products:
   • Daily banking is required
5. Services:
   
   • Consider short - term (90) days financing.
6. Mining and Quarrying:
   
   • Consider medium term facilities of not less than 12 months.

This caters for:

1. Public servants
2. Pensioners
3. Any other employees from reputable organisations/school approved by CIB.

Pension earners with a minimum survivors benefit period that can cover the loan period can also benefit.

2.3.4 Customer types:

1. Preferred customers in order of priority:
   1. Customers requiring facilities against their fixed deposits or any other deposits on their accounts held in the bank.
   2. Long - time customers with good run on account and good repayment records.
   3. Salary earners from reputable organisations approved by CIB earning at least Ug. shs. 200,000 per month.
   4. Community group borrowers e.g. Market vendors and women organisation.
   5. Long - time customers with relatively inactive account and no lending experience BUT with good valuable security within an urban centre preferably Kampala.
   6. New customers with potential for highly profitable relationships.
      
      
2. Non - preferred Customers:
   1. Customers with bad borrowing records from any financial institutions.
   2. Customers with dubious character or engaging in illegal, illegitimate or speculative business.
   3. Customers engaging in new business ventures.
      
      

2.3.5 Types of facilities:

1. Overdrafts / lines of credit:
   This will be available to customers who require working capital with a defined repayment program for a period not exceeding 24 months. This will also be available to salary earners for a period not exceeding 24 months. This should constitute about 70% of the credit portfolio.
   
   
2. Short - term overdrafts /loans:
   Up to one year and this will be the type of credit for specific commercial transactions, transport, agricultural loans and services. This should constitute about 20% of the credit portfolio.
   
   
3. Temporary overdrafts
   These are extended mostly to customers with already running facilities but are in need of funds to bridge gaps in their cash flows. These should be repaid in a period of not more than three months within the validity of the running facility and the security held should be sufficient to cover the temporary facility.
   
   
4. Long - term loans:

   Loans exceeding two years should be approved on a very restrictive basis primarily for three sectors namely: Transport, Manufacturing and Building and construction. This should constitute about 10% of the credit portfolio.