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
RWF 5 Billion
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.
RWF 4,545,455
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.
Product designed for clients in need of working capital for clients with emergency of money for finance their tenders or any other urgent need justified by the client.
Urunana product is offered for Community Banking, basically group of people who have self-selected into groups of min 8 to max 15 individuals. The priority is given to Low income and micro entreprenuers particularly women and youth living inperi - urban and rural areas
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
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.
An investment loan is a fixed contract with the customer to finance a known need such as acquisition of business assets, acquisition of another business, expansion or diversification of existing operations.
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.
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, tri annual and annual as the case may be.
Grace period of up to 12 months may be granted to allow adequate time for completion of works and commencement of cash flow generation.
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 investment loan must be attached to the charge document.
Insurance must be taken over the property/equipment/vehicle/stock showing the bank as loss payee.
In instances where there is a significant element of construction in the investment project, loans to applicants without deeds of tangible securities (property), preliminary documents (authorization to build, deed plan and a 20 years lease agreement), leading to establishment of perfectible deeds must be presented to the bank in original form before disbursement.
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.
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,
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;
The Financing Gateway provides you with a free listing of the many financing instruments available for MSMEs. It enables you to filter the instruments that match your needs and click through to the –financing provider’s Internet pages or Contact agent details to find out more and apply.
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