For most people, acquiring a bank loan is sort of a nightmare, besides what borrowers say are hurdles by banks to ‘deny’ them credit. The high interest rates have also caused uneaseness among those who are ‘lucky’ to get funding. Commenting on the issue of high rates late last year, central bank governor John Rwangombwa urged borrowers with good credit records to negotiate with banks for better rates compared to the average market rate of about 18 per cent. Business Times interviewed a cross section of people on these issues.

John Kamasa, I&M Bank customer

I took a loan last year to start a business and its payable within 36 months at 21% interest rate, which is very expensive.

Wellars Munyagire, an accountant and Equity Bank customer

I acquired a loan to start a business at relatively affordable rate of 16% per annum. However, the average rate on the market today is high for borrowers and banks are sometimes reluctant to listen to people who want to negotiate.

Francis Umuhire, student

I have made different trips to the banks to apply for loans, but I am always discouraged by the high interest rates. However, they always explain that the number of people depositing is low, making it hard for the banks to accommodate all of the people who apply for credit. As a resukt, some banks are forced to raise their interest rates. That’s understandable, according to me.

Mary Umutoni, KCB customer

I am currently servicing a loan I took last year to finance my studies. The rates are increasing with years, this makes life a bit tough for people with low incomes, in the end, they do not save.

Jean Claude Harerimana, banker

Since I am a banker, the institution I work for gives me a preferential rate when it comes to acquiring a loan. The interest is a bit fair and affordable for staff compared to that of the ordinary customers. For general public, some of the customers qualify for lower rates, while others don’t. I think there is need for more sensitisation by sector players to empower borrowers on their rights and benefits.