Rwanda Medium Business Loan
Rwanda Microfinance MEDIUM BUSINESS LOAN provides entrepreneurs with the opportunity to take a flexible loan to be able to grow and further develop their business.
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Product Status
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Active
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Provider Name
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Micro Africa Ltd
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Administrator Name
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RML
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Country
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Rwanda
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Currency
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RWF
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Loan Amount (EUR)
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3001
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25000
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Investor Interest (%)
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1.00
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16.00
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Grace Period (month)
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0
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3
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Payback Period (month)
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1
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24
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Bidding Period (day)
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1
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45
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MyC4
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2.00%
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6.00%
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Provider
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0.00%
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0.00%
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Administrator
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0.00%
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36.00%
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Insurance Information:
1.5% insurance fee. The insurance covers death and permanent disability.
Risk Management Information:
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Required interaction with the client prior loan decision:
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1- Initial meeting with client: documentation of business, approx 1 hour
2- 1st client visit on site: review of business facilities and client residence, 3 hours
3- 2nd , unannounced client visit on site: visit business site, 15 min
4- Disbursement of loan: client in MAL office or through their bank account.
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Assessment of client’s affordability of the loan:
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• Monthly profits of business, including other household revenues and expenses not exceeding 50% of loan monthly installment
• Loan not exceeding 50% of business value (formality of business assets is not a condition)
• Client must not have other active loans, and must have cleared successfully any past loans
• Client can afford to comfortably pay the set out installments. This is established by asking a customer how much they can comfortably pay each month.
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Assessment of client’s stability:
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• Min 12 months of income history
• Must have lived in same residence for more than 1 year
• Coherence at client visits
• Have had their business premises at the same place for at least 1 year or has permanent premises.
• Has a properly licensed business
• Has a properly registered business
• If they have borrowed before, what is their previous credit history
• Are they able to properly secure their loans especially for large loan amounts
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Assessment of client’s reliability/character:
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• Reference check with the Landlord
• Reference check with other clients near new client site
• Reference check with the people listed down as referees
Notarization fee of RWF 8,000 and Administration fee of RWF 5,000
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Securities taken for this loan (collateral, co-signers, etc)*
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One or a combination of the below:
• 2 co-signers in the business neighbourhood are required
• If married, husband or wife must co-sign
• Collateral in the form of: -Car log books with a comprehensive insurance and signed blank transfer forms -Land title deeds with signed blank transfer forms -Income generating assets e. g. Generators -Guarantors assets with power of attorney -Personal/ household assets -Loan guarantee fund
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Other incentives for timely repayment of loan:
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Interest rebate for early repayment.
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* Disclaimer: Investors shall have no recourse to the security held in respect of any loan to Borrowers, nor have any recourse against MYC4, Loan Administrators or Providers for any default by Borrowers in their payment and repayment obligations.