I&M Bank (Rwanda) Plc showcased its innovative financial solutions on December 13 during the second day of the Under One Roof Expo by Mr Roof, reaffirming its dedication to advancing Rwanda’s housing and real estate sectors. As part of the event, Yves Kayihura, the Head of Retail Banking at I&M Bank, led a masterclass titled “Smart financing for builders and homeowners: Navigating bank solutions,” offering valuable insights into tailored financial options for industry stakeholders. ALSO READ: I&M Bank Rwanda launches 'Karame' campaign with 24-hour retail loan response Kayihura emphasised the bank’s alignment with the government’s vision, particularly in creating accessible housing finance solutions. “The banking landscape in Rwanda has evolved significantly. Previously, getting a loan required endless documentation, but now, with 16 banks, 40 microfinance institutions, and numerous financial entities, the game has changed. We must be flexible to align with the country’s vision,” he said. Kayihura pointed out one of the key barriers to homeownership: repayment capacity, especially for young professionals entering the workforce. To make mortgages more accessible, I&M Bank has extended its loan repayment terms to as long as 30 years. In the early 2000s, loans could only be paid back over 10 years. Then, we extended it to 15 years, and now we offer up to 30 years. Some people might worry about a 30-year loan, but think about the long term—your salary will likely increase over time, and this gives you a chance to own a home instead of paying rent, he explained. ALSO READ: I&M Bank, Kaizenvest bring affordable loans to Rwanda’s education sector Empowering homeownership with Hero mortgage The bank also has its Hero mortgage product, designed to support customers with existing mortgages. The product enables quick access to funds for property renovations, investments, or other goals, leveraging the principal already paid. “Hero is for people with mortgages who need quick cash for growth. It’s about creating a mutual relationship, when you grow, the bank grows. In modern banking, we already have your information. With Hero, it’s as simple as writing a letter to access funds,” he said. This product is particularly beneficial for self-employed professionals who lack fixed monthly incomes. “Self-employed individuals may not have consistent salaries but often earn substantial amounts over time. We assess their average income to provide financial facilities.” Supporting developers, off takers Kayihura also noted I&M Bank’s innovative approach to real estate financing, which bridges the gap between developers and buyers (off takers). “If you’re a developer with 40 units and 40 committed buyers, we provide financing to expedite the project. The bank, the developer, and the off takers all benefit. The bank is assured of buyers, the developer is confident of completion, and the off takers know their project will be delivered,” he explained. Kayihura acknowledged past challenges, citing incomplete projects that left buyers frustrated. “We’ve seen projects that never materialised, leaving off-takers crying. But we’ve also had successes, such as Vision City Phase 1, completed with the support of banks and off-takers,” he noted. Boosting access to affordable housing The bank is also collaborating with developers, fund managers, and government institutions to address systemic inefficiencies in the housing sector. Instead of traditional loans requiring collateral registration, which often delays projects, I&M Bank provides direct financing to developers, transferring loans to end-buyers upon project completion. Additionally, Kayihura noted Ryoshya Iwawe, a product tailored for developers to access construction materials through the bank’s partners with zero-interest financing for up to three months. “This product prevents developers from taking on high-interest loans or delaying project progress,” he explained. Empowering the diaspora Recognising the challenges faced by Rwandans in the diaspora when investing in real estate back home, Kayihura emphasised the need to rebuild trust between diaspora investors and local developers. “We’re innovating to ease cash flow constraints and ensure that projects meet timelines and expectations,” he said.
