Some people or sectors of the economy cannot access finance on the normal lending terms of financial institutions, either because the person does not have any credit record, has no collateral or because the sector is judged too risky to invest in. This is the case for the rural people in the agricultural or related sectors. BPR runs a number of rural investment guarantee funds to help those people and sectors deemed risky.
The Agricultural Guarantee Fund is a facility put in place by the Rwandan government and managed by the central Bank as an instrument to boost investment in the agricultural sector. The aim of this guarantee is to promote financing to viable rural projects without enough collateral or regarded risky by banks.
Individuals send their loan applications to BPR and also seek to benefit from the guarantee fund; ? The bank undertakes its usual analysis of the credit application and sends this to BNR ? The bank undertakes to finance such a project once BNR accepts to cover the perceived risk by the guarantee fund. ? With the acceptance of BNR, BPR provides the loan to the applicant.