Bank of Africa Rwanda, in partnership with SanlamAllianz General Insurance Plc (Rwanda), launched a new product called Tekana Loan on Wednesday, September 25.

Tekana Loan enables customers to pay their comprehensive vehicle insurance in agreed instalments over a maximum period of one year, rather than in a lump sum.

Customers have up to 10 months to repay the loan interest-free; however, the bank charges a one-time 10 per cent commission.

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Vincent Istasse, Managing Director at Bank of Africa Rwanda, emphasized the importance of comprehensive vehicle insurance for both individuals and businesses, noting that the cost can often be challenging.

He explained that many people struggle to pay a lump sum for insurance premiums, which can create pressure on financial planning.

"The Tekana Loan provides a solution to this issue by offering flexibility in how customers manage their insurance payments. What makes it even more appealing is that clients only need to pay a 10 per cent commission upfront, with Bank of Africa-Rwanda covering the full premium cost,” he said.

He also noted the ease and speed of the process, with approvals and disbursements happening within just two days. He expressed his appreciation for the bank’s partnership with SanlamAllianz, which made this innovative product possible.

"At Bank of Africa-Rwanda, we remain committed to offering innovative products that meet the real needs of our clients. Tekana Loan is a perfect example of this, bringing together flexibility, affordability, and financial peace of mind,” he added.

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Istasse encouraged clients to explore the benefits of the Tekana Loan, emphasizing how it can improve both vehicle insurance management and their overall banking experience.

"Together, we are ensuring that our clients don’t have to choose between protecting their vehicles and managing their cash flow. They can do both effortlessly,” he said.

Richard Hodehou, Chief Executive Officer of SanlamAllianz, expressed his gratitude for the partnership between Bank of Africa and SanlamAllianz, emphasizing its role in easing the financial burden of paying insurance premiums upfront.

He explained how the collaboration makes paying insurance premiums more manageable for customers by allowing them to spread the cost over time rather than paying a large sum all at once.

"The advantage of the product is that it frees the insured from paying a large amount upfront and gives them the option to spread the cost over 10 months,” he said.

He noted that this innovative product not only simplifies life for the insured but also enhances the experience for Bank of Africa customers.

The loan is available to salary earners banking with Bank of Africa, businesses with vehicles financed by the bank, and companies. Additionally, no collateral is required for salary earners, and the process is fast, with disbursement within two days. It helps customers avoid large one-time cash outflows.

The loan process is straightforward, and the bonus of it is that with Tekana loan, the individual clients can get up to 10,000,000FRW unsecured and 50,000,000FRW needing no collateral for businesses.