On 12th June 2025, the Uganda Professional Science Teachers’ Union (UPSTU) held a vital ProDev Hour session under the theme “Understanding Credit and Loans.” The session aimed to build members’ financial literacy by focusing on responsible borrowing, loan application procedures, and how credit impacts long-term financial health.
The presentation kicked off with a recap on personal financial management, followed by an in-depth discussion on the fundamentals of credit—defined as the ability to borrow now and repay later with interest. Various sources of credit were outlined, including SACCOs, banks, mobile lenders, and retail credit.
Participants explored the difference between good debt and bad debt, and were guided through the types of loans offered by UPSTU SACCO. The session also broke down critical loan terms—such as principal, interest rate, repayment period, and collateral—to ensure participants make informed decisions.
One of the most practical segments detailed the SACCO loan application process, encouraging members to be consistent savers, identify their loan purpose clearly, and ensure they present credible guarantors or collateral. Attendees also learned how to calculate the true cost of borrowing, with real-life examples, and were encouraged to always ask: “How much will I pay back in total?”
To help participants avoid falling into debt traps, the session outlined warning signs of problem debt and emphasized the importance of maintaining a good credit record through timely repayment and responsible borrowing.
In closing, members were reminded that credit is a powerful financial tool when used wisely. The SACCO remains the most secure and reliable first option for borrowing.
This ProDev Hour reinforced UPSTU’s commitment to empowering teachers not only in the classroom but in their personal financial well-being as well.
Watch the full recording here:
Stay tuned for the next UPSTU ProDev Hour!