Credit Itermediation

Credit intermediation services are financial services that involve linking borrowers with lenders and helping to move funds from people who have money (savers) to those who need money (borrowers).

Main services in credit intermediation include: 

1. Accepting deposits  

   • Banks collect money from individuals and businesses and keep it safely.  

2. Providing loans and advances  

   • Lending money to individuals, companies, or governments with interest (Refer to the Factoring services).  

3. Facilitating credit access  

   • Helping borrowers get credit by assessing risk and approving loans.  

4. Credit assessment  

   • Checking the creditworthiness of borrowers (ability to repay loans).  

5. Loan management  

   • Monitoring repayment schedules and managing loan performance.  

6. Financial intermediation advisory  

   • Giving advice on borrowing, lending, and investment decisions. 

7. Security Agent Services (SAS) 

   • SAMPRO acts as collateral agent/security agent across all types of secured loans. This ensures the borrower and lenders have a single point of contact and that the collateral is held by a licensed Financial Service Provider with established service provider relationships. The use of local offices from the outset of a transaction also ensures optimal efficiency in the event of a default or restructuring. 

In such perspective, SAMPRO will assume responsibility of : 

• acting as the interface between the different loan parties; 

• registering the securities on behalf of the lenders who are not registered as lenders in Rwanda System; 

• accepting the pledge of the applicable collateral and enforcing rights against that collateral when directed to do so by the lenders; 

• taking special actions in respect of the collateral, such as safe keeping in secure fire-proof facilities and indicating in its records that the collateral is held for the benefit of the lenders. 

Main components of fee structure: 

1. Registration fee  

   • A client interested to this service, he or she will pay a registration fee of 10,000+VAT of 18%. This proves a commitment of the client to conduct the transaction. 

1. Loan arrangement fees  :1.5%  

   • A one-time fee charged when a loan is approved and processed.  

   • Covers administration and processing costs.  

1. Advisory fees  :2% 

   • Charged for financial advice related to borrowing, restructuring debt, or credit planning.  

1. Security Agent Services (SAS) :  

   • Fees is between 5% and 10% for loan in local currency and 0.1% to 0.5% for the loan in foreign currency. This fee will be paid annually until maturity of security registration.