An overdraft loan is a lending arrangement on a current account that permit the customer to over withdraw on current account up to the specific limit with a specific expiry date
£3,681,818
Open account in UB
Procurement contract, sub-contract or Purchase Order
20% of customer contribution
Experience in business or in tender execution
Project description (customer needs statement)
Application letter
Company Registration Certificate/ID copy of the applicant and his guarantor
Legal status certificate - RRA Tax Clearance Certificate
Valuation report of collateral (done by a valuer who has a partnership with UNGUKA Ban
A Stock Medium Term loan is a fixed contract with the customer to finance an increase in stock levels and to finance the permanent portion of stock with a fixed repayment schedule.
Businesses must be established and be able to show profitable trading results over two years at least.
Customers who have at least serviced similar facility for 36 years and with good track record in terms of paying commitments
The primary source of repayment of the loan is the cash flow from the business’s activity and repayments must be strictly tied with cash flows. Borrowers must present cash flow forecasts and preferably balance sheet projections for the entire period of the loan’s tenor. These must demonstrate that the cash generation of the business is positive and will enable the loan to be repaid over the loan period with a reasonable margin for error.
Repayments will normally be evenly spread over the life of the loan with monthly repayments of principal and interest.
In all cases a second way out must be provided in the form of tangible security. This may include the following:
A registered mortgage over commercial or residential property.
A charge over the operating assets of the business: Pledge on Business Assets for the full amount of the facility extended, a list of current assets at the time of disbursement must be attached to the charge document.
Insurance must be taken over the property/equipment/vehicle/stock showing the bank as loss payee.
A quarterly report of stock should be submitted by the borrower
1. Facility letter signed by the customer to confirm their acceptance of the terms of the bank’s offer
2. For a company :
a. Copy of the company’s certified statutes and Copy of the certificate of registration.
b. Resolution by the Board of the company authorizing the company to borrow from the bank Check the covenants
3. For partnerships:
a. All documents must be aligned with partners’ deed.
4. For sole traders:
a. Copy of the certificate of registration
b. Tax certificate
c. Insurance
5. Security documentation appropriate for the security concerned as per the Credit Policy checklist.
6. A copy of latest tax clearance certificates otherwise the current account with RRA.
7. List and ageing of debtors and creditors and a stock/inventory report.
An Equipment or Business vehicle loan is a fixed contract with the customer to finance a known need with a fixed repayment schedule. The equipment or vehicle to be financed must be directly used in the business and should ideally be new. Used equipment or vehicle may be considered only where evidence (through the internal Engineer) can be produced to certify the condition of the equipment or vehicle and its expected working life.
Businesses must be established and be able to show profitable trading results over two years at least.
Start - ups can be considered by exercising extreme caution based on reliable and tested cash flows projections.
The primary source of repayment of the loan is the cash flow from the business’s activity. Borrowers must present cash flow forecasts and preferably balance sheet projections for the entire period of the loan’s tenor. These must demonstrate that the cash generation of the business is positive and will enable the loan to be repaid over the loan period with a reasonable margin for error.
Repayments will normally be evenly spread over the life of the loan with monthly repayments of principal and interest. In special circumstances and as may be dictated by the business cycle, repayments can be made quarterly, semiannual and annual as the case may be.
In all cases a second way out must be provided in the form of tangible security. This may include the following:
A registered mortgage over commercial or residential property.
An undertaking to mortgage over commercial or residential property pending receipt of title deeds for buildings under construction.
A charge over the operating assets of the business for the full amount of the limit extended where a loan is extended along with working capital finance. A list of current assets at the time of disbursement and specific fixed assets financed by term loan must be attached to the charge document.
A fixed charge over the equipment/vehicle to be financed.
Insurance must be taken over the property/equipment/vehicle/stock showing the bank as loss payee.
If the equipment/vehicle is used for private purpose this must be disclosed at the onset and the bank must ensure that there are sufficient cash flows to repay the facility. This should be only applicable for sole proprietors and partnerships.
Pro-forma invoices must be available to confirm the cost of the equipment. Wherever possible it should be supplied through a distributor who is able to offer after-sales service or maintenance facilities, or at least the source of repair or maintenance facilities should be certain and practical.
Direct disbursement to suppliers should be considered where possible.
A grace period not exceeding six months may be appropriate if equipment is imported and/or has an extended installation period. If this is the case, the RM must justify the delay in payments commencing in the credit application file and must monitor specifically that the expected delays are not exceeded.
Facility letter signed by the customer to confirm their acceptance of the terms of the bank’s offer
For a company :
Copy of the company’s certified statutes and Copy of the certificate of registration.
Resolution by the Board of the company authorizing the company to borrow from the bank
Check the covenants
For partnerships:
All documents must be aligned with partners’ deed.
For sole traders:
Copy of the certificate of registration o Tax certificate
Insurance
Security documentation appropriate for the security concerned as per the Credit Policy checklist.
A copy of latest tax clearance certificates otherwise the current account with RRA.
Agricultural production with innovation in processing, good packaging, export,… Grant accompanied with loan of 6 million to be paid at 12% and direct equity of 1 million.
Proof of agribusiness project owned by a Rwandan citizen
Proof that two years were spent after graduation from secondary or university studies
Cooperative or company registration proof
Proof that project is at start-up stage with less than one year of existence
Proof that the project is under combined production and agri-business or agro-processing
Proof of 10% of total project value owned by owner of the business
Gisubizo Loan Express is an unsecured loan that seeks to meet short term financial needs/urgent needs for bank retail customers. Maximum is 15 times net salary.
The proposed Asset Financing Product Program is targeted at SME/Corporate businesses with need to acquire moveable assets (machinery, vehicles, equipment, etc) for commercial use and in order to expand/upgrade or modernize their businesses. Maximum up to 80% financing for the assets.
The asset being financed should be used to improve the capacity of the existing business
Loan application letter
Proforma Invoice of the trucks/trailers to be financed.
Audited financial statements for the last three years
Cash flow projections for the next five years
Last 12-month bank statement from other banks
Details of loans/facilities in other banks
RDB certificate
Tax Clearance certificate
Valuation report of existing collaterals (trucks) to be pledged as collaterals
Safi product is targeting Self help groups and Voluntary Savings and Loan Association (VSLA's) in the deep rural areas. We partner with NGO’S who link their Savings Groups with VFR to access higher loans.
£3,682
Matured groups after 12months of formation
Repayment frequency:Monthly
Recomemded by an NGO / Facilitating Agency / Local Authority
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