Urwego Opportunity Bank (UOB) has unveiled a loan financing package worth Rwf 2.5 billion that will be channeled to Small and Medium Enterprises next year to support growth of small businesses.

The bank’s Chief Finance Officer, Emmanuel Mugandura, said the funds will be given out to its customers, especially as part of community loans which are meant for members of small business groups.

Mugandura made the remarks on Friday while officially launching UOB Gisozi branch, bringing the bank branches to eleven branches countrywide with five in Kigali.

"With this scheme, we target those who are less privileged, with little or no collateral, to access loans from commercial banks. With this particular arrangement, we evaluate their businesses to ensure that they are able to service their loans or even encourage them to work with the country’s Business Development Fund (BDF) so as to minimise risks,” Mugandura said.

The government last year established BDF to provide loan guarantees for the agricultural and SME sectors with the aim of increasing business and employment opportunities for Rwandans. By August BDF reports indicated that over 1,750 loans had been guaranteed by the Fund and that 70 percent of the Rwf17.5bn in loan guarantees had been channelled to the agricultural sector.

UOB agents said that although opening physical branches in various parts of the country was one way of taking its services closer to clients, it will also be focusing on having more agents through which the banker’s services will be accessed and connected to other financial institutions.

"Next year, we are targeting to have more than 1000 agents and we expect this to be a great boost to our most recent product on innovative mobile banking solutions in cooperation with mVISA,” Mugandura said.

The mVisa technology is a product of Visa Inc that connects consumers, businesses, financial institutions and governments in more than 200 countries. It also promotes financial education and enhances a cashless economy.

UOB and Bank of Kigali are the only banks currently offering mVISA services. Recently, Visa Country Director, Ginger Baker, said that KCB Rwanda, Equity Bank and I&M Bank would also start offering the services next year.