CHIC Finance PLC has been officially launched to enhance access to finance for small and medium-sized enterprises (SMEs), following seven months of initial operations that helped establish its market presence and service offering.

The licensed deposit-taking microfinance institution was established by shareholders of Champion Investment Company (CHIC), the developers behind the CHIC commercial complex in downtown Kigali.

The institution currently offers loans of up to Rwf200 million at annual interest rates ranging between 17.5 and 18.5 per cent. For now, the loans are available for everyone and exclusively to CHIC vendors, with their shops serving as collateral, depending on the amount borrowed.

Officially unveiled on June 5, the firm is the first subsidiary of CHIC Ltd, a decade after a group of Rwandan traders pooled their resources to build one of Kigali's most recognisable commercial complexes. More ventures are expected in the future, including CHIC Holdings, as it continues expanding.

Speaking during the official launch, Gasigwa Festus, Chief Executive Officer of CHIC Finance PLC, welcomed guests and reaffirmed the institution's commitment to supporting entrepreneurs and businesses across Rwanda.

"This institution was established to provide accessible, innovative, and customer-focused financial solutions that empower businesses and individuals to grow and prosper. We are committed to becoming a trusted financial growth partner, contributing to the development of SMEs, job creation, and Rwanda's broader economic progress," he said.

Stakeholders attribute this achievement to the Rwandan government's encouragement of collective investment, collaboration, and innovative thinking, principles consistently championed by President Paul Kagame. Nearly a decade later, that spirit of unity and enterprise continues to bear fruit.

Targeting SME financing gaps

According to Jean Pierre Iyamuremye, Chairman of the Board of Directors of CHIC Finance PLC, more than 3,000 accounts have been opened, and approximately Rwf1 billion in loans has been disbursed to borrowers since it started operations, with the institution targeting Rwf8 billion in loans by the end of this year.

"We started with a target capital of Rwf11 billion. So far, Rwf6 billion has been raised, while the remaining Rwf5 billion is expected to be collected soon from stakeholders," he said.

Iyamuremye explained that the institution will cater primarily to SMEs, many of which have faced challenges accessing financing, particularly due to collateral requirements and the lengthy loan approval process, which often discourages businesses.

Fast loan processing and digital banking

Iyamuremye said CHIC Finance PLC aims to be a game changer by providing loan decisions within 24 hours.

"For instance, we have the 'CHIC Loan' specifically designed for businesses operating within the CHIC building. Because we already know these clients, loans can be approved within 12 hours. This helps them meet obligations such as tax declarations, stock replenishment, rent payments, and more," he said.

The institution offers savings accounts, SME loans, digital banking, and daily transaction management services for both individuals and businesses.

Capital mobilisation and future expansion

For many observers, the launch of a new financial institution is paramount. However, for the shareholders behind CHIC, it represents the latest chapter in a story that began more than a decade ago.

André Bitwayiki, Vice Chairman CHIC Ltd said that in 2016, as construction of the CHIC commercial complex completed, the development was born out of a common challenge faced by traders in Kigali and that was the shortage of modern and affordable commercial premises.

"Today, they are seeking to address another major challenge—the limited access to affordable financing and a supportive financial ecosystem, which often hinders the growth of small businesses," he said.

Loan products and services

Today, the financial institution offers 'Business and SME Loans' a financing structured to help small and growing enterprises manage their cash flow, expand operations, and increase working capital, according to its management.

Other products are Trade Financing, which are specialised support designed specifically for traders, merchants, and investors involved in commercial activities; and Personal and Group Loans, consisting of flexible credit options catering to individual financial needs and cooperative groups.

Stakeholder confidence and governance call

François Twagirumukiza, Chairperson of the Private Sector Federation (PSF), commended the initiative and urged the institution to strengthen its business governance, saying this would help businesses thrive and enable the private sector to achieve greater growth and ambitions.

"This is the best moment to enjoy the fruits of our efforts and think about expanding our businesses. We need to think beyond our current achievements and pursue more opportunities in line with progress and breakthroughs," he said.

Chic Finance Plc is promoting secure digital banking channels designed for everyday use in Rwanda, enabling customers to manage their finances with ease and confidence.

Through its platforms, clients can carry out transfers, pay bills, and monitor their accounts seamlessly, as the institution positions its services as fast, simple, and accessible for daily financial needs.