Difficulties of accessing bank credit especially due to lack of collateral shouldn’t worry people anymore.
The Business Development Fund (BDF) is offering banks a financial security on behalf of borrowers as a way of promoting lending to upcoming business.
BDF is an established company meant to support SME’s by offering credit guarantee facility. They generate their funds from government entities such as the National Bank of Rwanda (BNR) Rwanda Development Bank (BRD) and several ministries.
The preferred ventures are Small and Medium Enterprises (SME’s) as well as agriculture.
In his remarks the minister of trade and industry, Francois Kanimba noted that the grant was timely with the government’s campaign to strengthen SME’s through encouraging the private sector and stakeholders to join the cause.
The BDF Chief Executive Officer Desire Rumanyika was quick to support the minister adding that the grant also aimed at facilitating upcoming businesses to access finance as a way of promoting the economy, of which 90% of its growth is gained from SME’s.
He further pointed out that the fund was formed to the tune of Rwf 11 billion and that Rwf 1.5 billion of the amount has be channeled to several banks to support agriculture projects.
This supplements a BDF grant for Rural Investment Facility which was availed by the ministry of agriculture and animal resources.
The grant is worth US$ 10 million with main purpose of providing incentives for both financial institutions and for entrepreneurs making productive investments in agriculture.
About accessing the grant, an applicant should present a solid business plan meaning it should be technically feasible, financially viable, with projected cash flow that will enable repayment within a maximum of 12months.
The project should also observe standard environmental norms, yet in case of amounts below Rwf 5million a simplified business plan will suffice.
In agriculture the three categories of investments that qualify include; primary production, processing of the products and agriculture support services.
BDF will also offer advisory services related to investment, corporate and microfinance development.
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