Rwanda: Bank of Kigali's Interest-Free Credit Scheme to Benefit Eight Businesses

May 17, 2017 | The New Times; All Africa

Bank of Kigali selected 8 businesses out of 350 applications in order to provide them interest-free loans to stimulate their growth.

Eight businesses are set to benefit from Bank of Kigali's 'Urumuri Initiative,' designed to facilitate select entrepreneurs to access interest-free credit to help them grow their businesses. This was announced, yesterday, in Remera, Kigali, where the bank started a mentorship training that will see selected 50 individuals or group entrepreneurs equipped with business skills for seven months. BK announced the Rwf60-million interest-free loan in partnership with Inkomoko Business Development as part of the bank's plan to continue supporting the entrepreneurship ecosystem as it celebrates 50 years of service. "We are marking 50 years of serving Rwandans. We looked at what else we can do to continue contributing to the sustainable development, and so we came up with this Urumuri Initiative to facilitate the entrepreneurs to access credit," Dr Diane Karusisi, the chief executive, said. Karusisi added that throughout the period of training, they hope entrepreneurs will be able to understand the principles of business, business management, accounting, financing, and market. Many banks are reluctant to consider giving start-up loans because they don't have track records or credit records. Also, some individuals are at times scared of using loans in starting businesses since this seems a risky decision. "Entrepreneurs say starting a business or even expanding one with a loan is risky. But this is because most upcoming businesses don't have efficient skills. We hope that we will be able to learn more about how to generate income so that we can be able to pay back," said Jean Baptiste Nyabyenda, the head of Yeejo, an online storytelling platform. Read more on All Africa. Source: All Africa