RML partnership with Myc4 makes small business loans easier

Small businesses will be able to access loans more easily, thanks to a new partnership with Rwanda Microfinance and online Danish company Myc4. Michael Kasibante, managing director of RML, said that the objective is to connect investors in Rwanda to enterprises in the developing world, in order to create sustainable businesses through access to capital. “The signing of the memorandum of understanding will increase access to funding to growing business projects,” Kasibante said. Under the partnership, Myc4, an online venture focused on using business to end poverty in Africa, will fully or partially fund Rwanda Microfinance’s customers’ capital needs. The deal, signed July 17 in Kigali, which is not equity or debt, will also help the microfinance institution to reduce its interest rates and provide long term loans to its clients. RML has been providing short tem loans at interest rates of two to three per cent per month. But management said that the interest rate will be reduced to one per cent while clients will be able to access longer repayment periods of 18 to 36 months. Previously, loan terms were not longer than 12 months. Since 2000, RML has handed out Frw3 billion to almost 5,000 customers. Under the new partnership, RML will identify eligible borrowers, appraise them, then post the information to Myc4’s website. Myc4 will make the final decision on financing projects, some of which include agriculture, trade and finance. Kasibante said the deal will also help RML to introduce new products on the market. This includes micro leasing that will allow small and micro businesses access to equipment and group lending that will focus on the customers who have no assets to pledge but need start up funding. RML is a subsidiary of Micro Africa, which has branches in Kenya and Uganda. Myc4 is an international incorporated company operating in Copenhagen, Denmark. Ends

News

RML partnership with Myc4 makes small business loans easier