BCR agrees deal with SORAS on mortgages
Insurance company Societe Rwandaise d'Assurances (SORAS) has reached a deal with Rwanda Commercial Bank (BCR) to support low and middle income earners.Insurance company Societe Rwandaise d'Assurances (SORAS) has reached a deal with Rwanda Commercial Bank (BCR) to support low and middle income earners.
Under the terms of the agreement, BCR customers on more modest salaries will be able to obtain insurance on products such as mortgage and home equity loans, the Rwanda Focus reports.
Sanjeev Anand, managing director at BCR, believes this will benefit those individuals who "have a repayment capacity but do not have the 20 per cent deposit required to own homes".
He noted that the commercial bank has already been issuing corporate bonds and has access to long-term development financing.
This, he said, shows the company has "adequate internal resources" that enable it to satisfy the mortgage requirements of its customers.
Consumers will be given up to 20 years to repay their mortgage loans and home equity loans must be paid back in seven years.
Construction loans are also included in the deal and these must be paid back in 15 years.