Medical workers have started to access cheaper and quicker loans after their savings scheme hit the Rwf1 billion mark since it was established just over a year ago.

Officials said that medical workers are now accessing loans at an interest rate of 3 per cent, which is well below the commercial banks’ average of 17 per cent. 

The initiative has been lauded for its potential to enhance the retention of health workers in the profession.

Dubbed Health Sector Staff Mutual Aid Group (HSS-MAG), the Fund was set up in October 2017.

The Minister for Health, Dr Diane Gashumba, told The New Times that the Fund has so far disbursed over Rwf294.9 million to 326 health sector staff, mainly nurses and medical doctors and other associated health professionals.

Gashumba added that the Fund is in line with the National Strategy for Transformation, which aims to boost savings and access to finance by Rwandans.

"HSS-MAG allows health sector staff retention and personal development by granting affordable loans to its members,” the minister said.

She observed that; "Apart from the financial benefit, there is something critical that has motivated our effort to put in place this Fund: to get all of us together, supporting each other… different levels of salaries but the same goal.”

Dr Emmanuel Rudakemwa, Chairman of Rwanda Medical and Dental Council, told The New Times that the Fund is important as it helps medics to save money that can help them in terms of urgent need.

It takes less than three days for the Fund to process the loan, Rudakemwa said.

"When the beneficiary requests for a loan, they get two or two and half times the money that they saved, and are charged an interest rate of 3 per cent,” he said.

He added: "It is not like a bank that requires collateral. For us, the requirement is to be a medical employee getting a salary and on the payroll of the Ministry of Health or other health facilities.”

Minister Gashumba explained that, with commercial banks and other traditional financial institutions, it was hard to consistently save money.

HSS-MAG offers its members the opportunity to collectively save money and negotiate with reputed institutions in Rwanda for higher interest rates on their savings, particularly through RNIT (Iterambere Fund).

editorial@newtimesrwanda.com