Role of Credit from Commercial Banks On Housing Development in Rwanda

ABSTRACT The aim of this study was to establish the contribution of credit to the housing development in Rwanda. The study was directed by the research objectives to which the researcher ways to answer through this research undertaken I. The study was directed by the research objectives to which the researcher wants to answer through this research undertaken. Identify and assess the needs in housing development in Rwanda; 2. Identify stakeholders that play a role in the housing development in Rwanda; 3. To identify commercial banks that grant housing credits and to find out the types of housing credits that they grant; 4. To assess the contribution of banks credits in housing development in urban and rural areas. To lay background to the study, related literature was reviewed. Primary and secondary data were collected for analysis. Purposive sampling technique was employed to choose thirty respondents from BPR s.a NY AMA TA -Branch and the head of credit office was selected for their interview. Data was analyzed using both quantitative and qualitative methods and research questions were responded using general percentages. The results from research revealed that credits have a positive and significant impact on housing development in Rwanda. That savings and credit are the main services of the bank to housing development. Bank credits are powerful instruments in the housing development and there should be a government policy to develop housing in the country based on the commercial bank credits.