Rwanda : Village settlement, a stumbling block to accessing financial services

 We cannot access loans because we have no legal property ownership, residents, associations and cooperatives of people in village settlements in Ngororero district have spoken out.

According to the Ngororero sector leader, residents in the village settlements have not yet got land titles as per the policy of the ministry of local government (MINALOC).

Village settlement, a stumbling block to accessing

Residents in Kidundu village settlement face such challenges










Residents with houses and pieces of land cannot use them as guarantee to access loans which is hindering development in this area.

Josephine musanabera, member of women’s crafting cooperative narrates this cooperative cannot expand because they have asked for a loan but in vain.

Village settlement, a stumbling block to accessing.png2As a result, some banks in Ngororero district complain about this issue saying it reduced the number of customers that ask for loans, when it’s the only way for a bank to make profit.

However, bank managers say that some residents were given loans on temporary qualifications, which they failed to replace after getting permanent documents.

The reason behind this was to use the documents in securing loans from other banks, which forced Rwanda Development Board (RDB) to stop money lending to village settlement residents.

Sector worker in charge of cooperatives says MINALOC worked on the issue and land owners will soon get their land titles.

However, he stresses that some residents do not collect their land documents when they are ready.


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