Bank of Kigali has urged clients who want to buy equipment to run and boost their businesses’ profitability to apply for ‘equipment loan’ from the bank that is paid back at lower interest rate. BK’s equipment loan is available to all Rwandans including the youth and artists, explained David Bizura, the Regional Business Manager at Bank of Kigali. “The loan product looks at those who need different equipment for running their businesses and increasing profitability yet they do not have a budget at the moment. So, they can apply for the loan to buy such equipment to help them boost their business income” said Bizura. Which equipment? The equipment that benefit from the loan, he mentioned, include machines needed in the client’s businesses including those needed in artists’ studios, office equipment such as computers, printers, chairs etc, hotels and restaurants equipment such as beds, kitchens, furniture for seating areas and others. “The clients must demonstrate how the equipment will increase profitability for the business. Then assessment of the application is made and approved for those who meet the eligibility criteria,” he said. Bizura added that there is no limited amount for the loan requests. “We assess the financial capacity of the loan applicant but also advise them on how to acquire the loan which will boost their business operations,” he said. Requirements In order to apply for the loan, the applicant must be a bank’s client or have an operational bank account with another local bank for at least six months. The bank also assesses the client’s bank account performance, their financial capacity, how they designed the project or savings they have on their account, he explained. Bizura explained that for individual loan applications, clients need to submit a request letter, the list of needed equipment and their prices, details on profitability that will be increased from such equipment in their project. The individual must also submit a financial statement of their bank account performance for the past six months. When it is a company applying for the loan, he said, the applicant also submits an application letter, the company’s board resolution to apply for the loan, details on profitability that the business will gain from using the equipment and financial statement of the bank’s account activity for the past six months. “For new clients, we observe the account’s performance for at least six months to make a decision. Once we see that the business is doing well, it helps us to make a quick decision to approve the loan request,” he explained. Lower interest rates The interest rate on acquired equipment loan is 17.5 per cent per annum. Loan collateral is required but it must not be the impediment against requesting the loan. The equipment loan is a unique product which many people might not know about but has proved to be vital for businesses which want to grow their portfolio or expand what they do in a short time. Bizura urged the youth to approach Bank of Kigali to acquire the equipment loan adding that they will also be advised on how their projects can operate better. BK’s equipment loan is available to all Rwandans including the youth and artists. / Sam Ngendahimana Some equipment that this loan can facilitate you to buy. / Sam Ngendahimana
