MBARARA, Uganda — Mbarara City authorities have directed all beneficiaries of the Parish Development Model (PDM) to begin repaying their loans following the expiry of the grace period.
In an official communication dated 37th March 2026, the Mbarara City Council instructed division town clerks in both North and South divisions to mobilize beneficiaries and ensure the immediate commencement of loan repayments under the PDM SACCOs.
The directive follows earlier government circulars on the implementation of the program, which provided a 24-month grace period for the first batch of loans disbursed in December 2022. City authorities confirmed that this grace period has now elapsed, making all beneficiaries in this category eligible to start servicing their loans.
According to the letter signed by the City Town Clerk, beneficiaries are required to channel all repayments through their respective PDM SACCO WENDI accounts, under the guidance of the City Commercial Officer. Local leaders, including SACCO boards and town agents, have also been tasked with sensitizing and mobilizing recipients to comply with the repayment schedule.
Officials say the move is aimed at sustaining the revolving fund model of the PDM program, ensuring that more citizens can access financial support for income-generating activities.
The Parish Development Model, a flagship government initiative, was introduced to lift households out of subsistence living by providing affordable credit at the parish level. However, the success of the program heavily depends on timely loan recovery and reinvestment.
Authorities have urged beneficiaries to honor their obligations, warning that failure to repay could undermine the program’s long-term impact on poverty reduction and local economic development.
