Rwanda’s Leading Commercial Bank by Assets – Bank of Kigali (BK) Group has launched a new customer-based product that will allow its customers to get fast unsecured loan and save with just one click.
Normally, only banks are allowed to give loans to customers, but in the corridors of financial transactions, especially in Kigali, some businessmen offer loans to people in need of quick cash at an interest rate of 30 percent – fundable in one month with guarantee, a system better known as Lambert Bank.
On the rules of the black market, non-compliance with this schedule, “Banque Lambert” dealers normally confiscate collateralized assets – which range from laptops, cars and even homes depending on the amount borrowed.
By dialing * 334 #, using BKApp or BKonline banking, the new cashless product ‘BKQuick’ or ‘SingombwaKash’ allows you to borrow up to Rwf 500,000 repayable between one and six months with an interest of 4% and a 2 percent fine for default.
On the savings side, the ‘SingombwaKash’ product will allow you to make automatic savings of a determined amount of your choice every month, but also to obtain an interest of 6.5% compared to other fixed and simple savings modules. 7% interest.
Celebrating its 50th anniversary in 2017, BK launched a “Bigereho” product which has enabled the bank to obtain more than 30,000 new customers and the “SingombwaKash” campaign should build on this achievement.
“We want to be relevant to these customers, keep them active with more and better services where you don’t have to worry about accessing a loan or saving money,” said the CEO of BK , Dr Diane Karusisi, at a launch briefing Thursday. .
The new product, which requires having a BK account, should propel Rwanda’s cashless society movement launched three years ago, but also taking into account its income in the conditions for obtaining a loan.
“We will consider their financial capacity when it comes to borrowing, but that will require being active by starting with savings. In case they don’t have a constant income, we can discuss based on their banking history. said Vincent Gatate, commercial director of BK.
On the flip side, Dr Karusisi also revealed that this product puts the bank at risk when it comes to refusing to repay customers, but working with Rwanda’s credit reference bureau will allow BK to monitor financial behavior. client.
“Since we don’t ask for collateral, we can lose as a bank if a customer doesn’t fully repay the loan, but working with the credit bureau will help mitigate these instances,” Karusisi said.
According to BK officials, financially healthy customers don’t need to use the BKquick to get a bank loan, but can use the product to make quick payments and transfers without leaving the premises.
Although there is ineffectiveness in similar “quick” bank loans and cashless services provided by telecommunications and other banks, for the Association of Banks of Rwanda (RBA), the “SingombwaKash” product is a pace and a challenge for other bankers in the cashless drive.
“For us, it’s the score. From ATM campaigns to quick loans and savings, we believe Rwandans will not carry cash with them. At some point, even ATMs will no longer be useful, ”said Jacqueline Mugwaneza, head of the RBA at the launch event.