This is a special lending facility to priority sectors and groups of people. Government, NGO’s or a donor agency put funds at the disposal of BPR to finance projects from specific sectors or towards specific groups of people or individuals.

PPPMER II: Project pour la Promotion des Petites et Moyennes Entreprises Rurales.

This is a project under the Ministry of Trade and Industry, intended to promote rural SME’s. Funds are put at the disposal of the Bank to provide specific sectors and groups of people with loans. The facility works as a revolving fund such that the amount paid back on the awarded loans is provided to other beneficiaries.

How does this facility work?

 PPPMER identifies people and mobilizes them into associations. It trains them to develop viable projects which, after thorough preparation, are sent to the bank for financing.
  BPR also undertakes its own analysis of the loan application files.
  Once approved for financing, the project gets the loan at preferential conditions:
— A preferential interest rate of 11% per annum.
— If the loan is well paid back in the required time, 40% of the interests are given back to the SME.
  Funded projects under this facility include projects in arts and crafts, and other off farm income generating activities.
  The awarded loans are generally micro-credits repayable in up to 12 months.

RURAL INVESTMENT FACILITY: PHASE 2

This is a form of subsidy/grant by the government of Rwanda under the rural sector support project to promote investments in the rural area. Eligible investments to this facility are categorized as primary agricultural production, processing of agricultural products, and agricultural support services. These may include:

  Acquisition of fixed assets including vehicles, equipment, machinery, and land required for production, processing, storage, etc.
  Construction of buildings for economic activities in rural areas;
  Construction or improvements in other physical infrastructure;
  Capacity building, technical assistance and training costs to enhance technical or marketing of the potential investor

Eligible applicants can be:

— individuals,
— farmer associations or cooperatives
— corporate bodies

Conditions for project eligibility :

  to fall under the three categories mentioned above
  Project should be technically feasible and financially viable
  Project should be environmental friendly
  Proof of technical and managerial competence to run the project
  To present a solid business plan

Financial conditions:

— Pay back period is 5 years and in exceptional cases, 6 years
— Fixed and preferential interest rates
— The grant provided varies between 15% and 25% of the investment loan depending on the loan amount and the type of investment project.

CREDIT FUND BY CARE INTERNATIONAL

This is a fund put at the disposal of BPR by Care International to finance SME projects in the rural area. These include projects in agriculture, livestock farming, arts and crafts, etc.

  Care International identifies associations and trains them in project formulation and management
  The associations come up with projects and seek for financing from BPR.
  BPR analyses the loan applications and viable projects are financed
  Financial conditions:
— The normal bank interest rate
— Pay back period is 12 months with possibility of a grace period depending on the type of project being financed

GIRINKA PROGRAM

This is a government program intended to provide each poor family with a cow.

How does this facility work?

  A district identifies the beneficiaries and the supplier of the cows
  Then BPR pays for the cow, which is handed over to the beneficiary
  The loan is provided at preferential conditions:
— 13% annual interest rate
— To pay back in up to 48 months

HEALTH INSURANCE (MUTUELLE DE SANTE)

Under this facility, BPR in agreement with a given district undertakes to finance health insurance to a group of households in that district.

What are the benefits?

— Beneficiary households are able to subscribe to the annual health scheme without the burden of paying the lump sum at once. With access to health services, they live and work better to improve their livelihoods.
— To the district, such a facility is a good incentive for the population to adhere to the health insurance scheme and thus improve the health status of the population;
— To BPR, such an initiative is a good contribution to the socio-economic development of the country.

How does this facility work?

  The district sensitizes households to form associations of 10 to 50 people to access health insurance credit;
  The formed association, with the help of the district health insurance division, applies for a health insurance loan from BPR;
  The bank analyses the loan application and provides an answer in not later than 15 days.

What are the loan conditions?

  The loan is offered to a group of households of 10 and 50 people;
  Each household should have an account with BPR
  The loan is secured by:
— Joint guarantee of the members of the association
— The district
  The loan payback period can go up to 12 months

OTHER SPECIAL FUNDS:

  The tripartite agreement between Nyagatare district, BPR and the Italian Cooperation which finances income generating activities especially for especially among women cooperatives.

  The financing agreement between BPR and the Rural Development Project in Bugesera implemented by Luxembourg Development.