Wednesday, September 28, 2022
No menu items!
HomeNewsRwanda: Development Bank of Rwanda Embarks on Fresh Measures to Boost Student...

Rwanda: Development Bank of Rwanda Embarks on Fresh Measures to Boost Student Loan Repayment

Establishing a database of employees who benefitted from university students’ loan schemes is at 90 percent. However, there are still difficulties in tracing beneficiaries working in the informal sector and those who are self-employed.

This was revealed by Pitchette Kampeta Sayinzoga, the Chief Executive Officer (CEO) of the Development Bank of Rwanda (BRD).

“We are coming up with fresh measures to discover where all beneficiaries are located,” she added.

Sayinzoga shared the progress when BRD and Higher Education Council (HEC) officials recently appeared before the Public Accounts Committee (PAC) to respond to queries contained in the Auditor General’s report of 2020/21.

According to the report, there is low recovery of students’ loans and this affects plans to provide loans to more students who are in need of support to pursue higher education.

By mid-last year, the bank had recovered only Rwf24.4 billion out of the total disbursement of Rwf221.85 billion.

The number of loan beneficiaries was 139,925 whereas only 18,626 had paid back the loan, which represents just 13.3 per cent.

The number excludes the disabled and the deceased whose loans were either waived or written off.

Among the challenges that the bank was facing is the missing and inaccurate students’ data who benefitted from the scheme since 1980 as per the law.

This makes it hard to trace the loan beneficiaries, but the institution said it is embarking on integrating with more stakeholders like Rwanda Revenue Authority, Rwanda Social Security Board, National ID Agency and Credit Reference Bureau to get additional data, and collaborate with the Foreign Affairs Ministry to put in place mechanisms to bring on board beneficiaries including those living abroad so that they start paying back.

“We have no information about the whereabouts of some loan beneficiaries. The data base for beneficiaries of whom we know exactly where they are currently employed is at 90 percent.

“We are going to establish a database for individuals-the loan beneficiaries who are not employed in any institution but are self-employed and those in the informal sector,” Kampeta said.

BRD is also pushing for reforms to the law that governs the students’ loan scheme in order to establish and enforce penalties to defaulters.