The Bank of Kigali has launched an initiative to inform human resource professionals about its mortgage financing products, with the goal of making housing more accessible and affordable for people across the country.
The campaign was launched on Friday, June 1, during an event that brought together at least 150 human reresource professionals in Kigali.
The bank also showcased its digital banking and retail banking services.
Bank of Kigali has collaborated with the Development Bank of Rwanda (BRD) and Rwanda Housing Authority on the "Gira Iwawe" project, providing Rwandans with the opportunity to purchase a house at interest rates as low as 11% per annum over a 20-year repayment period, ensuring accessible, affordable housing mortgage loans.
Under this programme, Bank of Kigali reported that it has already provided loans worth over Rwf1 billion to clients who managed to buy affordable houses, in addition to many others who have applied for the loans.
Yves Kayihura, the Head of Retail Banking at Bank of Kigali, said the bank aims to train all human resource professionals nationwide, and introduce them to its mortgage financing, digital banking, and retail banking services.
"We have a target to meet employees at their offices and introduce them to BK services and products. That is what we informed human resources professionals about during the meeting on Friday.
"With digital banking services, the professionals can pay salaries. Clients can check balance on their accounts, and they can check loans they owe to the bank," he said, adding that the bank will soon introduce a system that allows customers to apply for loans using the internet and mobile banking.
He noted that the bank has partnerships with more than 10 affordable housing developers who construct and sell houses.
"Then we connect buyers to sellers of affordable houses. We also opened a mortgage centre that is in charge of mortgage loans," he said.
Kayihura said that after meeting 150 human resource professionals, the bank will visit each of their institutions for more education about mortgage loans.
"This outreach will help every employee know a mortgage loan they can secure depending on their monthly salary," he said.
The property purchased serves as collateral.
Interest rate at 11% per year, for those who earn not more than Rwf1.2 million salary per month, is charged for houses not exceeding Rwf40 million.
Interest rate at 13 % is charged per year for houses above Rwf40 million but not exceeding Rwf60 million.
The requirement is having a monthly salary not exceeding Rwf1.5 million, a month, for those to pay 13 % interest rate.
The loans are repayable over 20 years.
Renovation and construction mortgage
Kayihura said that currently, the client can acquire a mortgage loan to purchase a built house, renovate a house or construct a new house.
General requirements include loan application letter, duly filled loan application form, ID copies of the applicant, copy of employment contract for salary earners, pay slips for the past three months, company business profile for business owners and proof of business proceeds, certified valuation report of the property to be financed or pledged as collateral and bill of quantities if you are constructing or renovating.
They also include a provisional sales contract between the buyer and seller, proof of individual contribution, construction permit if you are constructing or renovating, bank statement for the past 12 months as well as loan certificate in case of a loan takeover from another financial institution.
Herbert Kalisa, the Learning and Development Manager at Skol Brewery, welcomed BK's awareness campaign saying many employees could gain information about BK's affordable housing financing mortgage products to make their choices.
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"We have about 500 employees and they need information about BK services. Human resource officers are now the bridges between employees and the Bank of Kigali. We have realised that even low income earners can acquire a mortgage loan to get a house to be paid within 20 years. This loan repayment period is sufficient for many," he said.
Suzan Mutamba, the HR Manager at Rwanda Convention Bureau, reiterated that the institution will transfer knowledge about BK mortgage products to the employees.
"We also expect BK to visit us for more details. There are different affordable products which can help especially new employees," he said.
Noel Nsanzineza, the Rwanda Housing Authority Deputy Director General, said that the $150 million World Bank funded project is facilitating investors in affordable houses with subsidies in terms of availed land and infrastructure in estates, and those who want to buy houses at a subsidised interest rate (11%) through the Development Bank of Rwanda (BRD) and commercial banks.
