Rwanda: I&M Bank Raises Limit on Unsecured Loans
Accessing credit in Rwanda has for long been characterized by rigorous processes and requirements that have been seen as frustrating for many.
A local financial institution, I&M Bank is attempting to change the trend.
The bank has revised its Éclair Loan product where they will lend up to 17.5 times one's salary without collateral.
The bank says that the move to increase unsecured loans from 12 times one's salary to 17.5 times will respond to market demand and consumer needs.
Faustin Byishimo the Executive Director at I&M Bank Rwanda said that the move is also buoyed by their experience over the years as well as adjustment in the regulatory framework.
The efficiency of the Credit Reference Bureau, he said, has seen the availability of more reliable data giving them confidence on their move.
"There have also been changes in the local framework that has improved our confidence. For instance, due to the Credit Reference Bureau, One cannot just divert their salaries without due process. The data is cleaner and reliability is much higher," he said.
To address the market demands, Byishimo said that they have noticed a rise in demand for loans, especially as the middle class, expanding.
As the middle class expands, he said that there is a demand for loans as this group seeks to acquire assets and make investments for personal growth.
"Salaries do not always grow but the demand for money has grown, people may want to make investments or acquisitions and acquire more things. There is demand," he said.
Beyond raising the limit on the loans, the lender has also reviewed features and requirements to ease access to credit... read more on All Africa
Source: All Africa