Define Block Allocation form of financing.

Block allocation is a mechanism that allows borrowers seeking loans of up to UGX 20 million to access funding through the Agriculture Credit Facility and Small Business Recovery Funds without relying on traditional forms of collateral.

Participating Financial Institutions can advance credit to individual borrowers for amounts not exceeding UGX 20 million. These borrowers may use alternative forms of collateral, such as Kibanja mortgages, chattel mortgages, credit ratings, or cash flows, to qualify for credit under the funds administered by the Bank of Uganda.

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