Following long-standing requests from young people and artists for easier access to financial services, the Ministry of Youth and Arts in partnership with Development Bank of Rwanda has announced a new loan scheme allowing both groups to access credit with only 10% collateral and an interest rate of 9%.
According to the official statement, loan applicants will be required to provide collateral not exceeding 10% of the loan amount, with an interest rate of 9%. Those who repay their loans properly will receive a bonus equivalent to 10% of the borrowed amount after completing repayment successfully.
Loan repayment begins three months after disbursement, with repayment periods ranging from six months to five years.
Youth and artists interested in benefiting from this fund must meet several requirements, including being between 18 and 30 years old, although the age limit does not apply to artists.
Applicants must also have an existing and operational business, be tax-compliant (or at least possess a Tax Identification Number and a trading license), and have held an account with a financial institution for at least one year.
In addition, applicants are required to submit a business plan outlining the current status of their project, its profitability, and future growth prospects.
However, both youth and artists have been informed that the loan amount requested must not exceed 10 million Rwandan francs. They must also present a repayment plan and demonstrate that they have worked with institutions that provide business training.
