Teachers through their Savings and Credit Cooperative, Umwarimu SACCO, last week secured a Rwf1.5b refinancing facility from Rwanda Development Bank (BRD), in a move aimed at helping them own homes.
According the Chairman of Umwarimu SACCO, Jean Marie Vianney Nzagahimana, they had to get the loan facility because teachers cannot afford buying homes on their own.
“To get this loan, a teacher has at least to have built his/her foundation which is worth Rwf2m, then the body will grant the loan,” Nzagahimana said.
BRD’s Chief Executive Officer, Jack N. Kayonga said they want to increase the cooperation with Umwalimu SACCO and help teachers to develop themselves by owning homes.
In the deal, Umwalimu SACCO will construct 600 houses for teachers in all districts of the country.
Houses will be in three different categories ranging from Rwf4.4m, Rwf6.5m to Rwf10m.
Nzagahimana explained that teachers will have to contribute 25 per cent of the funds with the SACCO financing 75 per cent.
“The loan deal will be payable in 15 years , as the project is aimed at improving the living conditions of teachers and also maintain 106 jobs and 14 additional jobs to be created next year,” he noted.
Umwalimu SACCO started operating in 2008 in order to improve teacher’s lives by saving.
The scheme currently has 50,000 members with a net saving of Rwf5m per teacher.
Nzagahimana also said that the SACCO plans to provide laptops, solar energy system to every teacher in the country in the next five years.
The fund has so far given out Rwf17billion in total loans.
This is the first time BRD is giving out a loan facility since its merger with the former Rwanda Housing Bank (BHR) early this year.