Rwandans can now access credit at more convenient terms following developments by one of the biggest lenders to revise loan requirements.
In a bid to increase the uptake of loans and access to capital, the Bank of Kigali has revised its credit requirements and terms.
The lender has increased the unsecured personal loan limit from Rwf 10 million to Rwf30 million, which they say is aimed at fostering customer experience.
To be eligible for the revised terms, the loan amount should not exceed 12 times of one’s net salary while loan amounts exceeding Rwf5 million ought to be repaid within 3 years. Clients ought to be working in reputable organisations or have proof of stable income.
Vincent Gatete, the Bank’s Chief Commercial Officer, said that they have also revised the turnaround time from 168 hours to 48 hours.
He said that following a survey on the average turnaround time, they found the duration to be quite long hence the revision.
“The Bank put in place measures to address pain points that customers have been having with a focus on retail clients. Among them is revision of the turn around time from client’s loan application to disbursement to 48 hours,” he added.
Clients will not also always be required to visit the bank’s head office for loan applications as branches can approve and disburse loans of up to Rwf2.5 million.
The development could further drive growth in lending, which grew by 20 per cent to Rwf 568.1 billion in 2018, putting the bank ahead of its competitors with a 31 per cent market share in lending.
The majority of the loans, however, 77 per cent went to corporate clients with retail clients taking 14 per cent, arguable leading to the revision of the strategy.
The Bank has also set up a One Stop Centre for personal loans to fast track the process.
Gatete added that they have also revised the debit cards issuance process by decentralising the access points from the Head Office to branch level as well as reducing time from a week to instantly if one has met all conditions.
The Bank has also introduced Digital Migration Agents in all branches to enable clients migrate to digital channels such as the application and internet banking, among others.
As a group, the entity in 2018 recorded an after tax profit of Rwf 27.4 billion (about $30.7 million) which was a 17 per cent growth from the previous year.
In 2017, the group recorded a net profit of Rwf23.3 billion and Rwf20.8 billion profit after tax in 2016.
The group’s Chief Executive Dr. Diane Karusisi, said that the growth was largely driven by the banking and insurance arms.