The Rwandan Bankers Association (RBA) has issued a new set of guidelines that will facilitate clients seeking to access credit facilities using secured property assets.

This follows issuance of new application forms by Rwanda Development Board (RDB) to register a charge against property assets.

According to the Chairman of RBA, Steve Caley, clients will have to present all the information as required when seeking facilities secured by property.
"They need to be aware that this is a general requirement and not one of just a particular bank demanding too much information and documents,” he told Business Times yesterday.

Caley, who doubles as the Managing Director of FINA Bank observed that the new registration requirements will reduce the time spent on processing such transactions in banks.

" It will make it quicker and easier if people are aware of what is required and deliver the right documents at the outset rather than having to be told what they need to provide and only then going away to find them-  all the time perhaps claiming "that the banks are slow
and ask for too much,” he said.

Given what is stipulated on the new application form for a mortgage registration by RDB, a client will have to provide several documents including a copy of title deed, mortgage agreement or credit promise, spouse consent in writing, in the case of couples married under the ‘community of property’ system whereby there is joint ownership of all property acquired.

"It will lead to a quicker turnaround time for bank approvals and draw-downs of facilities approved as the mortgages can be registered much quicker if people know what is required- then come to the bank(s) pre-prepared,” the Chairman observed.

In addition, the client will have to provide a document showing value of property by authorized agents with a bank stamp, proxy deed issued by the owner stipulating rights in the property in case the property is not registered under individual’s name.

The client will also have to present a document showing proof of ‘power of attorney’ status to represent the debtor if necessary.

RDB is also requesting for credit information and a registration fee of Rwf20, 000.

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