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.
Ksh 500,000
Matured groups after 12months of formation
Repayment frequency:Monthly
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;
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;
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 profitability
Adequate liquidity –
Adequate credit portfolio structure and portfolio quality –
Adequate internal controls, overseen by Audit Committee –
Adequate accounting and book keeping and MIS system,
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,
The invoice Discount Facility enables customers to bridge the debtors' gap and continue with their business activitieswhile waiting settlement of invoices
Existing business with current on going contract and none settled invoices
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
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.
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.
To finance fully fluctuating working assets of a business, mainly stocks and trade debtors and not intended to finance permanent working capital, business expenses nor any form of long term assets.
Verifiable net operating cash flow (averaged over 2 years) equal to or greater than (4) times the size of the proposed overdraft limit.
Tangible and readily realizable security in one or more of the following forms: a. Charge over the operating assets of the business for the full amount of the limit; b. Goods in transit being shipped to the order of the bank (bills of lading made out to the order of the Bank); c. Pledge of specific stocks under the control of the bank in a bonded warehouse; d. A full set of Bills of Lading with BPR endorsed as consignee; e. A registered mortgage over residential or commercial property with a forced sale value (FSV) by an approved valuer of 125% of the limit
Fixed charge over fixed assets
Set off on deposits held with the Bank
Bank guarantees
Negotiable instruments with acceptable liquidity such as Bonds, Repos etc.
All security is required to be fully insured in sufficient amount to repay BPR, with BPR as the named loss payee. Current insurance policies from acceptable insurers to be held.
Overdrafts are high risk credit products and their use should be restricted to situations where other short term credit products are inappropriate or unworkable
Businesses that demonstrate good current account credit turnover (banking) or businesses that hold relatively high levels of stocks and debtors evidenced by periodic reports. In all cases, the account must record fluctuation of at least 50% of the facility amount per quarter.
A minimum of Rwf 5 Mio should be allowed.
Facility letter signed by the customer to confirm his acceptance of the terms of the bank’s offer
Signature by the borrower to the Bank’s Standard Terms and Conditions for Credit Facilities
Overdraft agreement on the bank’s standard form setting out the conditions for conduct of the overdraft.
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 We should check for any negative covenants
For partnerships:
All documents must be aligned with partners’ deed and signed in accordance with the powers stated in the partnership deed.
For sole traders:
Copy of the certificate of registration must be obtained.
Tax clearance certificates
Adequate 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.
List and ageing of debtors and creditors (if applicable)
Full secured loan by discounting the invoices that have extended maturity dates to enable our clients to overcome their cash flow shortage -. Maximum 80% of invoice value
Open account in UB
Procurement contract, sub-contract or Purchase Order
20% of customer contribution
Experience in business or in tender execution
The invoice has to be paid through your UB account
Automatic deduction from your account once in voice payment is made
Loan Payment period is equal to the invoice maturity
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
Ksh 500,000,000
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
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
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;
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.
Certificate of business registration/incorporation
Memorandum & articles of association (for Corporate and SME)
Latest 6 months bank statements (12 months if Business is seasonal in nature)
Proforma invoice from the dealer/vendor
Latest 3 year financials, tax clearance certificate and cash flow projections. Audited financials are required for higher exposures. (For Corporate and SME)
Copies of contract where asset sought is to meet contractual requirements. (For Corporate and SME)
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