The National Bank of Rwanda (BNR) has called on financial institutions to develop more innovative and affordable products to meet the current increasing market demand and different customer needs.
According to John Rwangombwa, the central bank governor, the market has few products, with banks offering similar products.
“And as the country’s financial sector continues to show robust growth (about 20 per cent per year), it is important that sector players bring to the market more innovative and affordable products to meet the market demand,” Rwangombwa said.
Governor Rwangombwa was speaking during the I&M Bank annual customer appreciation day in Kigali on Thursday.
He retaliated the need to put in place strong mechanisms to help fight bank fraud cases that have been increasing in the recent past.
I&M bank unveils new mortgage facilities
Meanwhile, I&M Bank has launched new mortgage facilities, making it easier for customers to own homes. The new home loans are mortgage, construction and home equity.
The facilities have repayment terms of up to 20 years, up from 15 years previously. Customers can also acquire a top-up loan towards the end of their ongoing mortgage.
“Our construction loans facility offers customers repayment terms of up to 15 years and has financing options that are designed to match their cash flow and construction needs at each stage,” said Robin Bairstow, the I&M Bank new managing director. Customer contribution for the facility is now 20 per cent including the value of the plot.
Equally, the bank’s home equity loan now allows customers to borrow up to 70 per cent value of property, up from 50 per cent, repayable in 15 years compared to the previous seven years loan repayment period.
The bank recently intensified its efforts to promote a cashless economy registering about 300 per cent increase in uptake of VISA cards, as well as significant growth in usage at merchant locations.
The bank recorded 11.5 per cent increase in half year net profit to Rwf2.5 billion, up from Rwf2.2 billion at the end of the same period last year.