Zigama Cooperative and Savings Society has announced that it will reduce interest rates from 13 per cent to 12 per cent to boost access to credit.
The development follows complaints by members that the 13 per cent interest charged annually is too high. This is the second time CSS is reducing its interest rates in two years.
Last year, the bank slashed interest rates by 2 per cent (from 15 per cent to 13 per cent)
The move is a big step toward increasing access to credit given what most banks charge.
For example, the average industry rate by most commercial banks is currently 19 percent, according to Central Bank statistics.
Speaking during the bank’s general assembly held last week on Friday, Dr. James Ndahiro, the Chairman Board of Directors, sad the interest rate will be reduced from13 per cent to 12 per cent.
Meanwhile, the bank’s net profit increased to Rwf5.2 billion in 2015 up from Rwf3.6 billion in 2014. Equally the total assets increased by almost 25 percent from Rwf136 billion in 2014 to Rwf170 billion in 2015.
The cooperative bank’s loan portfolio grew by 28 percent resulting into an increase of almost Rwf100 billion in 2015 up from Rwf78 billion in 2014.
Savings and deposits went up from Rwf101 billion in 2014 to Rwf129 billion in 2015, Dr. Ndahiro told The New Times.
Meanwhile, the acting Defense and military spokesperson, Lt. Col. Rene Ngendahimana, said the bank’s top priority will remain taking care of clients’ welfare and better service delivery.
“We will continue to ensure that members borrowing money are actually investing in income generating activities,” he said.