This is a loan for machines designed for companies and organizations that generate profits through manual work and operate in Integrated Craft Production Centres (ICPCs) located in all regions of the country. The loan is also available for other projects operating outside of ICPCs, such as sewing and leather products, processing of agricultural and livestock products, horticulture, and fruit industry.
Eligible business activities
This loan applies to enterprises engaged in activities related to Welding, Leather Products, Textiles, Manufacturing, Vegetable and Fruit Farming, and the Processing of Agricultural and Livestock Products.
Loan amount and interest payment
The maximum amount of money provided is RWF 100,000,000. If this amount is exceeded, the beneficiary is required to provide a guarantee for the excess amount.
The interest rate for this loan is 11% per annum.
The loan is repaid over a period of up to 10 years, depending on the life span of the purchased machine and the repayment capacity of the project.
The beneficiary may be given up to 1 year of interest-only payments while preparing to start repaying the principal loan.
2. Requirements for the applicant for this loan
The loan applicant must work in rural areas, except for those who are involved in textile, leather processing, agricultural and livestock product processing, vegetable and fruit farming, and industry.
The applicant must have a valid certificate issued by RCA for cooperatives or by RDB for commercial companies.
A list of shareholders of the cooperative or company and copies of their identity cards are required.
The loan application letter that is addressed to the CEO of BDF.
A good business plan that demonstrates why the machine is necessary, what other resources will be required, and how the project will be profitable.
Insurance cover
The beneficiary is required to pay for the insurance of the machine before it is used.
Grant
A portion of the loan equal to 20% is given as a financial aid to the beneficiaries who have fully paid 80% of the infrastructure debt and have youth, women and men among the business owners and employees.
The Process to get this loan.
If you have a profitable project that meets the requirements of this program, you will go to the BDF branch in your district, and you will be given a list of requirements as described above to receive a loan from the leasing program.
