Guarantee Funds


Some people or sectors of the economy cannot access finance on the normal lending terms of financial institutions, either because the person does not have any credit record, has no collateral or because the sector is judged too risky to invest in. This is the case for the rural people in the agricultural or related sectors. BPR runs a number of rural investment guarantee funds to help those people and sectors deemed risky.


This is a facility put in place by the Rwandan government and managed by the central Bank as an instrument to boost investment in the agricultural sector. The aim of this guarantee is to promote financing to viable rural projects without enough collateral or regarded risky by banks.

How does it work?

- Individuals send their loan applications to BPR and also seek to benefit from the guarantee fund;
- The bank undertakes its usual analysis of the credit application and sends this to BNR
- The bank undertakes to finance such a project once BNR accepts to cover the perceived risk by the guarantee fund.
- With the acceptance of BNR, BPR provides the loan to the applicant.

What are the eligible activities under this facility?

All agricultural activities are eligible, including:

— Production
— Processing
— Distribution
— All other activities allied to agriculture like selling of inputs.

Who are eligible for this facility?

Any person, institution, association or cooperative doing activities linked to agriculture but without enough collateral to get a loan from BPR.

What are the financial conditions?

— Loan repayment period is 12 months or even more for agricultural investments
— The guarantee varies depending on the activity to be financed:


This guarantee fund is managed by the National Bank of Rwanda and is meant to boost women in accessing finance for their income generating activities. Under this facility, economically active women but with no collateral and no credit record, are helped to access finance from BPR.

How does it work?

- women or their association present a viable project to Banque Populaire du Rwanda
- The bank undertakes its usual credit analysis including the viability of the project and the integrity of the applicant.
- Once the bank’s analysis is done and the project is found viable then the file is sent to BNR which will approve the project’s eligibility for the guarantee fund
- If BNR approves the eligibility, then the project will benefit:
— 50% guarantee for an individual project (one woman)
— 70% guarantee for a project on an association of women

Other financial conditions

— For individual projects, the loan ceiling is Rwf 5 million
— For women associations, the loan ceiling is Rwf 10 million


This fund is intended to help women who became widows due to the genocide.

How does it work?

- Women, widows of the genocide present income generating projects to BPR for financing;
- BPR does its usual analysis of the loan applications;
- Viable projects are sent to BNR which ascertains the eligibility of the projects for the guarantee fund.
- Selected projects are funded at a special interest rate of 12% per annum.
- Such loans are mostly micro-credits repaid generally in 12 months.


This fund which also serves as a credit line was established by government after the public service reform which led to the retrenchment of some public service employees. The fund is managed by the National Bank of Rwanda.

How does it work?

- The said group of people, (individually or in groups), prepare income generating projects and present them to the bank.
- BPR analyses the loan applications and viable projects are sent to BNR
-  Projects selected by BNR are financed at preferential conditions:
— 50% loan guarantee
— 10% annual interest rate
-  The loans awarded go up to :
— 5 million for individuals
— 10 million for associations

See other Special Funds Credit Funds
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