Rwandan farmers will now be able to easily access agricultural loans from the Populace bank of Rwanda (BPR) after the launch of the a new product 'Sarura account' , aimed at lending more to farmers.
Farmers interested in benefiting from the scheme will be required to open a Sarura account, after which one has to deposit a minimum amount of Rwf 90,000. Credit is entitled to both individual farmers and those who have grouped themselves in cooperatives.
The Sarura account is part of BPR's US$2.1million investment in agriculture development, initiated last year. The amount is used to offer credit to farmers, agricultural based cooperatives, out-growers' finance schemes, and other large and medium agriculture related business.
The BPR's customer care department official, Jesus Gakuba says that the account is unique in a way that it will ease access to credit and the account will support mechanized farming by offering tractors on credit, of which our interest rate is 17 per cent, a fair offer compared to other financial institutions.
He also noted that though security collateral is not the main focus on the scheme, individual farmers will be required to farmer gives their land as a security and loans given out will be triple the credit applicant has on their Sarura account amount.