The Best Business Loans in Rwanda

Compare the best options on the market and choose the one which best adapts to your day to day needs.

Further Below: Our Guide To Business Loans in Rwanda, Everything you need to know.

KCB Rwanda

  • Loan limit depends on your security
  • Favorable repayment period of up to 72 months
  • Competitive interest rates of 17.5% p.a
  • Offers both secured and unsecured loans
  • Income stability is not a factor of consideration
  • Has a processing fee of Frw 10,000
  • Provides loans for a variety of purposes
  • Fast and flexible application process
  • Fast payout

I&M Bank Rwanda

  • Get a loan of up to Rwf 30,000,000(17.5 times your monthly salary)
  • Annual interest rate of 16% p.a
  • Friendly loan tenure of up to 5 years
  • Has no processing fees
  • Applicants with income stability are considered
  • Unlimited loan purpose
  • Excellent loan conditions
  • Flexible loan eligibility criteria
  • Fast concessions

Bank of Africa (Rwanda)

  • Offers loans of up to Rwf 4,000,000
  • Provides annual interest rate of 19% p.a
  • Loan repayment period of up to 4 years
  • Offers loans for various purposes
  • Compulsory life insurance policy
  • 50% repayment ratio
  • Seniority is a factor of consideration
  • Provides loans to creditworthy clients
  • Laxer application procedure
  • Has few commissions

Business Loans in Rwanda, All You Need To Know:

Know everything there is to know about business loans in Rwanda, including the variables that determine them and the best way to choose an offer. We walk you through the various platforms that offer company credits so you can choose the one that works best for you.

Take a read!

[UPDATE] What economic measures has the Government implemented for companies through covid-19?

Right away after the Covid-19 outbreak broke out, the Rwandan government intervened with policies that would protect companies and businesses from the crisis. The government revealed its tax-related policies in March 2020 and implemented various measures related to the Anti-Crisis Shield. 

Below are the measures taken by the government to shield businesses and companies through the pandemic:

  • The National Bank of Rwanda set the measures below on 18th March:
  • FRW 50 billion was issued to banks that were facing financial constraints during the pandemic. The loan repayment period was also extended to 3 and 6 months.
  • Cashless channels of payment were initiated to replace over-the-counter transactions for 3 months.
  • All transfer charges among banks and mobile wallets were eliminated until further directives. 
  • The government implemented the Act of subsidization of loan interests granted to companies directly affected by the pandemic. 
  • The government introduced a Recovery Plan to help businesses and the economy recover from the pandemic. It also initiated a program aimed at rescuing companies that were hard hit by the pandemic. The program would help companies and entrepreneurs to restructure their operations. 
  • The government rose to the occasion and placed price margins (for basic commodities) within which companies were required to operate.
  • All fees and submissions made by the government were waived for 6 months and submission deadlines for taxes, and government services were extended.
  •  The government initiated a recovery scheme for SMEs and private sectors that were adversely affected by the pandemic.
  • Low income earners were provided mini loans to support them through the pandemic.

Distinguishing types of company profiles

In Rwanda, there are various types of business loans, each with a distinct function. The sort of financing that your company is eligible for depends on several variables, including its profile, which establishes its solvency. Each company has unique traits that set it apart from the competition. The many business types that are accessible in Rwanda are shown below:


  1. Entrepreneurs: This kind of enterprise does not yet exist. The business owner takes the time to assess a situation and find a market gap that he can fill. He then moves on to make business plans while considering the dangers and the potential rewards.
  2. Start-ups: This puts entrepreneurs one step ahead. The company is already operational and has just begun. Numerous losses, fewer revenues, and erratic operations are the hallmarks of the company. Consequently, they receive loans to help them grow and achieve stability.
  3. Consolidated companies: These are companies that are solvent and have improved operational stability. Due to their established operations, these companies have made progress and now generate more profits than losses. They are eligible for substantial loans.
  4. Large companies: these are businesses with a big market reach. They sell both nationally and internationally and have a turnover of millions of Euros. They are companies like KPMG, One Acre Fund, and Rwanda Finance Limited.


  • As legal entities: these are professionals who own a business and are looking for financing. The type of loan they qualify for depends on their level of income. They qualify for a loan adapted for a single person.
  • As natural persons: these are people who are working but not as employees. Their income informs the amount of money they qualify for. In this case, they get personal loans that finance their projects.

Characteristics of business loans

A business loan is intended to aid us and advance the company while rescuing us from unforeseen financial situations. It does, however, require a solid grasp of the elements that make up such a loan. The type of loan, the characteristics of our business, and our negotiating strength are some of the key factors that affect our ability to obtain funding.

What makes a good business loan?

  • Cost. This is the first thing you want to look for whenever you’re seeking financing for your business. You want a cheap loan that allows you to improve your financial situation and makes the repayment process seamless.  
  • Amount. This is determined by the profile of the company and its solvency to repay it. Hence, you want to select an amount that suits your business’s growth prospects.
  • Purpose. You might be looking for financial liquidity, expanding your business, working capital, making further investments, importing raw materials, or paying your suppliers.
  • Linkage. Especially in banks, financing always comes with related products such as insurance, business accounts, or other products of mandatory recruitment.
  • Term. This is determined by the nature of the loan you’re taking out. A big loan will have a longer repayment time than a small one.
  • Grace period. This refers to a period (in the loan’s initial stages) where the borrower goes without repaying the loan without attracting any penalties. This period is most beneficial when we expect that the money from the financing will bring us benefits at a certain time.
  • Guarantee. This comes in when the lender requires “payment insurance” with a guarantee or collateral, based on our company profile and the size of the loan we are taking out.
  • Speed. This refers to the time the entity takes before releasing the funds to our accounts. While some take a few days, other entities may take weeks or months.
  • Repayment. This refers to the method through which we are required to repay the loan. You might be required to make monthly installments or repay the whole amount at the end of the loan term.

Where to get business loans

As the financial systems in Rwanda to evolve, technologies come up with products that are tailored to improve the borrowing experience. Below are the available lenders in Rwanda whom we can turn to in case of any kind of financial need:

  1. Banks: In the lending sector, they hold the lion’s share. They are renowned for providing sizable loans to businesses with a high degree of solvency. But they’ve just started offering SMEs financial options.
  2. Companies and private capital lenders: These are Rwanda’s second-best lending platforms. Because they handle their financing through online channels, they are quicker and more convenient than banks. Their goods compete with and frequently outperform those of banks.
  3. Alternative financing platforms for crowdlending: These are online channels that enable the meeting of a borrower and a private investor. The investor has access to our company profile and can choose whether or not to invest in our enterprise. These loans are quickly processed, and by the second day following the application, you will know if you are approved for the loan or not.

Numerous factors may have an impact on your decision to choose one lender over another. Therefore, you should do a thorough financial audit before accepting an offer.

Business loan conditions

The most typical requirements that every company seeking funding in Rwanda must satisfy are listed below.

  • National registration: There are several risks involved in loaning money. Since it could be challenging to follow up on repayment, a lender will steer clear of taking the chance of lending to a business without national registration. Additionally, rules controlling loans might not be applicable to such a corporation.
  • Annual income: Before disbursing the funds, the lender will review your financial records. This is significant since it demonstrates your financial strength and the viability of your business. The lender can also want the previous year’s financial data.
  • The seniority of the company: The kind or amount of loan you receive is significantly influenced by how stable your business is. As a result, an entity will want to know how long your business has been in operation. Make sure your business has been around for at least a year.
  • Creditworthiness: For your business to be approved for funding, you need a good credit history. If your company is listed on the Credit Regulative Authority list of companies with defaults, lenders will reject your application.

Please be aware that various entities may have slightly different terms. For instance, certain organizations might finance businesses with poor credit ratings.

Documents needed to get funding

The business will ask for a number of supporting documents to demonstrate your eligibility for a particular credit. Some of the most typical documents are listed here:

  • Company registration certification
  • VAT return from the previous year and the current year.
  • Income tax return.
  • Bank statement (if in another bank).
  • An updated balance sheet of the company’s turnover.
  • Proof of payment of Corporate Tax.

Likewise, entities’ requirements tend to vary at this stage. Moreover, the entity may ask you to send the documents via email, through an online platform, or through a courier among others.

Other forms of financing for companies

  1. Business credit lines

These are alternative sources of financing whose operations are different from loans. In this case, the lender gives us an amount of money that we can tap out as the need arises. Instead of returning the whole amount we took out, we only repay the amount we’ve withdrawn so far. 

This acts as a reserve fund when we need financing and do not have working capital

  1. Factoring

This is intended for small businesses or independent contractors who want to pay off their supplier’s debts (s). The organization directly transfers the funds to the supplier, which we will then reimburse using either monthly payments or another manner.

  1. P2B or crowdlending loans

This is an online platform through which investors get to see our company’s needs and decide on whether or not to invest in it. We might qualify for big loans depending on our project, company profile, and the platform we go to.

  1. Confirming

As opposed to factoring, this applies to suppliers who wish to collect orders before delivering them to maintain their financial liquidity. The loan acts like an advance and is reimbursed after we collect the orders.

  1. Loans with mortgage guarantee

These are credits that offer to finance if only we can present property to act as a guarantee. The processing of these loans may take longer than the previous options because the entity will take time to determine the amount of money it grants us owing to the appraisal value of the property acting as a guarantee.

Products to invest in our company

  1. Equity crowdfunding

These are the online platforms that are revolutionizing the lending industry. They establish a connection between a business owner looking for financing and a private investor or expert. It’s crucial to remember that the investor will receive a portion of the company’s profits in exchange.

  1. Business Angels

These are companies that focus on financing big business projects. Unlike equity crowdfunding, the business angel managers decide on which business they will invest in. However, note that the investors will become part of our company.

  1. 3F (Friends, Family, Fools)

Under this category, business owners get financing from friends, family, or fools. While the conditions of these loans are not regulated by the government, they are agreed upon by both parties and required to be adhered to.

Aid for the financing of companies

  1. Capitalization of unemployment

Only unemployed business owners can make this work. Such a borrower will gather all the employment advantages to which they are eligible to obtain financing.

  1. Crowdfunding

These platforms allow firms or business owners to connect with investors who want to fund their initiatives. The borrower can publish their projects on these platforms, and sponsors can choose the ones that interest them. 

About this page, our methodology

What this page is for: We are dedicated to helping you in finding the finest financial product to meet your needs. So, we walk you through the process of getting the best offer available at the time, explain the terms, show you how to compare offers, and teach you how to evaluate your financial situation. Everything concerning these debts.

Source: The information regarding the best loans, their main characteristics, and their regulation have been drawn from Rwanda Laws on consumer credits, the Capital Market Authority, and the Central Bank of Rwanda.

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.

About FUNDGECKO: We are an online comparator website that offers assistance in personal finance and home economics. Besides comparing the different loan options, you get rich information on how to identify the best option that perfectly fits your situation.Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.

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