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 £GB
Matured groups after 12months of formation
Recomemded by an NGO / Facilitating Agency / Local Authority
All housing and infrastructure projects implemented by the Development Bank of Rwanda (BRD) Plc. The aim of financing this sector is to expand access to housing, boost the services and innovation sector and support capital market
Business in Housing
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;
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;
BRD’s role is to insure efficiently the disbursement of loans and bursaries within Rwanda and abroad and enforce recovery of the loans. This service concerns both undergraduate students, postgraduate students and matured loans (income generating/employed loanees)
Only loans for energy
Compliance with prudential regulations
Adequate organization and governance
Capital adequacy –
Adequate liquidity –
Adequate credit portfolio structure and portfolio quality –
Adequate internal controls, overseen by Audit Committee –
Adequate accounting and book keeping and MIS system,
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
All documents must be aligned with partners’ deed.
For sole traders:
Copy of the certificate of registration o Tax certificate
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.
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