HOW ONE MAY OBTAIN AMONEY LENDING LICENCE/NON-DEPOSIT TAKING LENDING FINANCIAL INSTITUTION IN RWANDA (HOW ONE MAY ESTABLISH MOENY LENDING/NON-DEPOSIT TAKING LENDING FINANCIAL INSTITUTION IN RWANDA)

Law applicable

• THE CONSTITUTION OF THE REPUBLIC OF RWANDA OF 2003 REVISED IN 2015
• LAW NO48/2017 OF 23/09/2017 GOVERNING THE NATIONAL BANK OF RWANDA
• LAW NO 007/2021 OF 05/02/2021 LAW GOVERNING COMPANIES
• REGULATION NO 2100 /2018 – 00011[614] OF 12/12/2018 OF THE NATIONAL BANK OF RWANDA GOVERNING NON-DEPOSIT TAKING LENDING FINANCIAL INSTITUTIONS
• AMONG OTHERS

• Money lending/Non-Deposit Taking Lending Financial Institutions (NDFIs) mean any legal entity that regularly and principally performs financial services in the form of non-deposit taking lending financial services or related financial services
• Non-deposit taking financial services include credit services only, mortgage finance services, credit guarantees, refinancing services, factoring services, debt collection services and other financial services that the Central Bank may qualify as posing systemic risk to the financial sector stability
• supervisory authority is the central bank being National Bank of Rwanda or any other body to which the law may assign the powers to supervise financial service providers in Rwanda

No one is allowed to carry out Non-Deposit Taking Lending Financial  services in Rwanda without the license from the Central Bank

Below is the procedure of obtaining a license for Non-Deposit Taking Lending Financial Institutions (microfinance/moneylender license)in Rwanda;

1. Consult a lawyer about your intention to establish Non-Deposit Taking Lending Financial Institutions in Rwanda.
2. mobiliser a minimum paid-up capital of fifty thousand million Rwandan francs (FRW 50,000,000for microfinance and register company with the objectives of carry out financial services in Rwanda if you do not have one.
3. Conduct feasibility study and produce a report including a business plan, financial projections for the first three (3) years and intended areas of specialization, for new applicants
4. a certify copies of its memorandum, articles of association and certificate of incorporation or registration as the case may be
5.  organize a non-refundable application fee of fifty thousand Rwandan francs (FRW 50,000)
6.   fill information sheet as provided for in Appendix 2 of the Regulation;
7.  fill personal declaration form as provided for in Appendix 3 of the Regulation;
8.  Prepare statement that the invested funds are not coming from illegal activities as per appendix 4 of the Regulation
9.  Provide any other information that the Central Bank deems necessary to assess the applicant.
10. The applicant which intends to carry out non deposit-taking microfinance institution operations should then prepare its application for a license to central with proof that it has the required minimum paid-up capital.
11. The applicant which intends to carry Non-Deposit Taking Lending Financial Institutions operations should pay a prescribed licensing fee.
12. The applicant which intends to carry Non-Deposit Taking Lending Financial Institutions operations should attach all the above documents and submit application to the central bank for consideration.
13. The central bank may require the applicant to provide additional information or documents related to the application.
14. The Central Bank shall consider the application, issue a decision on the same and give notice of its decision to the applicant.
15. The applicant should then pay to the Central Bank the license fee of one hundred thousand Rwandan Francs (FRW 100,000) immediately after the notice of issue of the license by the Central Bank.
16. The supervisory authority shall issue the license to the applicant who fulfils all the requirements of this Law and relevant regulations.
17. The supervisory authority may reject an application and notify the company the grounds for the rejection of the application.
18. Where the applicant who applied for the license is not satisfied with the response received, such applicant may apply to the Central Bank in writing seeking a review of the decision.
19.  Any application for review must address the reasons given by the Central Bank in its initial decision.

Author is A regional transactions legal consultant (ADVOCATE) at NOA REGIONAL ASSOCIATED ADVOCATES AND LEGAL CONSULTANTS
Email address: onlinetransactionconsultancy@gmail.com

contacts. +250787311255,+256788105242
What sup +250787311255

NOTE: whereas the author has made necessary efforts to ensure the accuracy of this post, it is not intended to provide specific legal advice to a particular individual as individual situations may differ. For specific professional/ legal transaction advice on this subject matter and related subject, you may contact the author or contact any transaction legal consultant of your choice.
© Copyright 2022 okumu martin