Banks have cut back on the stringent conditions they had been imposing on Rwandans seeking loans, the National Bank of Rwanda announced Thursday, following its Monetary Policy Committee meeting.
In 2017, at least 31 percent of loan seekers were rejected, but the rate dropped to 21.9% last year 2018.
“Authorized loans increased…thanks to increasing demand for loans and reduced credit risk,” said Governor John Rwangombwa.
Just as an example of how the situation was in 2017 when loans were hard to come by; more than 140,000 Rwandans applied for credit in the first half of 2017.
But due to the tightening rules, banks received about 130,000 in the same period of last.
The central bank said that local lender, which had seen skyrocketing bad loans, brought in tough lending conditions as they concentrated on loan recovery to curb non-performing loans—loans in default or close to being in default.
The Committee also maintained the lending rate at 5.5% – which has been the same since last year.
The central bank said it had “observed that policy stance remains appropriate to ensure economic stability and continued and continued financing of the economy”.