Koramuhinzi Agricultural Loans products targets small holder farmers in rural communities, providing them with finance for their farming needs including loans for Inputs,
RWF 8,181,818
Matured groups after 12months of formation
Repayment frequency: Monthly
Recomemded by an NGO / Facilitating Agency / Local Authority
An advance on contract facility is offered in FRW by the Bank to enable its customers to execute purchase orders or contracts. Up to 70% of the cost of the order/contract.
The source of repayment of an advance on contract facility is the proceeds from the purchase order/contract.
The facility will be settled upon receipt of funds. In the event that there are no funds on repayment due date, the RM must immediately take action.
In all cases a second way out must be provided in the form of acceptance and easily realizable security.
Facility letter signed by the customer to confirm his acceptance of the terms of the bank’s offer.
Fully secured seasonal agriculture loan granted to the potato farmers
Have an account in UB - Having potato farming experience - Owning or renting the land
Potato farming project (customer needs statement) - Application letter
POTATO LOAN 23: - RCA Certificate for cooperative/ID copy of the applicant and his guarantor - Legal status certificate - Valuation report of collateral (done by a valuer, which has a partnership with UNGUKA Bank Ltd) - Collateral title (land, factory, car etc) and movable security documents - Act of lending property if the collateral doesn’t belong to the borrower - Life insurance is mandatory for individuals - Potato insurance is an option - Notified Board resolution for cooperative
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
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
Through commercial banks so they can on-lend to smallholder farmer(s) in need of smaller loans than the Bank’s minimum lending limit (Frw 50,000,000) with the aim to improve the national agriculture production and productivity along all priority value chains. Maximum = 25% of the banks net worth at the time of approval.
Business in Agriculture
Loan application letter along with a strong business plan
Financial report and bank statements for past three years,
ID of owner or company/cooperative registration certificate;
Promoter's contribution of at least 30% of the total cost of the project;
Bill of quantities of constructions (and soft copy) and perspective (if any);
Plans of constructions with District stamp (if any);
Valuation report of securities done by (person recognized by RDB and certified by IPRV);
Pro-forma invoice of equipment, raw material and materials to be bought; (if any)
REMA certificate with recommendations;
RRA and RSSB certificates;
RBS certificate;
All relevant authorizations in relation to the project to be financed;
Payment of nonrefundable service commission (1% of the Loan + VAT);
Land title/emphyteutic lease of the project site and securities;
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.
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Business bank guarantees especially for clients in contract management
A construction loan is a fixed contract with the customer to finance a known need and with a fixed repayment schedule. The need may be for construction of commercial or residential properties.
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 current and/or future 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.
Alternative cash flows may be considered.
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 quarterly, semi-annual, 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 an existing commercial or residential property.
An undertaking to mortgage over commercial or residential property pending receipt of title deeds for buildings under construction.
For existing businesses, an additional security of a charge over the operating assets of the business may be taken for the full amount of the loan extended (where applicable). A list of current assets at the time of disbursement and specific fixed assets must be attached to the charge document.
Insurance must be taken over the property showing the bank as loss payee.
Loans for construction of commercial or residential property must be supported by confirmation of planning consent issued by the District concerned.
An environmental clearance must also be provided from REMA for all factory premises.
Facility letter signed by the customer to confirm their acceptance of the terms of the bank’s offer
For a company (LTD):
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
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.
Facility enables customers to execute purchase orders or contracts. The bank finances up to 70% of the cost of the order/contract, excluding advance payments where applicable.
Existing business with signed contract to supply goods and services
To accept the payment of contract services into the customer’s designated account in Cogebanque
Application letter
Copy of original contract to supply goods or services,
Short term loan allowing the client to continuous withdraw money up to the limit
Regular income (from: business, livestock, rent, etc...) - Turnover for 3 months equivalent or greater than the requested credit line amount plus interest
Application letter
Project description (customer needs statement)
Financial statement
Company Registration Certificate/ID copy of the applicant and his guarantor
Legal status certificate
RRA Tax Clearance Certificate - Valuation report of the collateral (done by a valuer which has a partnership with UNGUKA Bank Ltd)
To guarantee the payment for services to be rendered to a business by another party.
To provide assurance of payment of claims to a third party by our customer by way of a standby letter of credit.
Customers for whom Letters of Credit are to be issued must have an established business and a satisfactory track record of conduct of their account.
Start-ups can be considered by exception subject to full margin or other good quality securities.
The terms of the L/C must be precise and unambiguous and define specific documents in accordance with the Uniform Customs and Practice for Documentary Credits, that define under what specific circumstances the bank will make payment.
L/C’s may provide for payment at sight or issuance drafts to be drawn on the account party to the L/C.
Where sight drafts are called for, the bank will make payment against presentation of the specified documents. In such cases the L/C terms should specify that shipping documents should be made out to the order of BPR to ensure the goods remain under the control of the bank.
If the customer requests original bills of lading to be sent directly to him or to his agent the bank must regard its risk as being clean and security should be taken accordingly.
Where issuance drafts are specified and the customer wishes to clear the goods against his acceptance of the bill presented under the L/C the risk to the bank is again clean and appropriate security must be taken.
L/C’s would not normally be issued for longer than twelve months. Any longer term should be regarded as an exception to Credit Policy.
In support of an L/C, a margin will normally be taken, which may be from 10-100% of the amount the bank could be called upon to pay under the L/C. The margin should be debited to the customer’s account and converted into the currency of the L/C unless an exception is sought in the application to allow a local currency margin to be held.
Where L/C’s are opened for other than import of goods, 100% margin should normally be taken or an exception to Credit Policy requested.
In all cases a credit limit must be approved covering the issue of an L/C. However, where full margin is to be taken a confirmatory credit approval should be obtained.
Each L/C will be requested on the bank’s standard form incorporating a standard form indemnity from the customer authorizing the bank to debit the customer’s account on presentation of documents.
Facility letter signed by the customer to confirm their acceptance of the terms of the bank’s offer of facilities.
For a company (LTD)
We will obtain confirmation that the company is registered and signatories have full power to commit the company (this confirmation should be obtained from bank records).
Otherwise, the following documents will be requested:
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
For partnerships:
All documents must be signed by all partners (associates) or in accordance with the powers stated in the partnership deed.
Copy of the certificate of registration must be obtained
For sole traders:
Copy of the certificate of registration must be obtained.
Security documentation appropriate for the security concerned as per the Credit Policy checklist.
A copy of latest tax clearance certificates or the current account statement with Rwanda Revenue Authority, if the facility is granted for less than 100% cash margin.
Pro-forma invoices or contracts for goods and services to be imported.
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