Sokofund

Sokofund is a service platform that promotes financial inclusion by making it easier for borrowers and lenders to connect. On the Sokofund marketplace, microfinance lending partners offer loans. A borrower can sign up and request a loan from our microfinance partners registered on our platform, provided that the borrower pays back the same amount plus applicable interest and fees. The Rwandan government has instituted a minimum APR of 7% and an average lending rate of 15%, Sokofund caps lender’s interest to a maximum of 18% APR on short-term loans obtained through our platform. The minimum and maximum repayment periods are 3months and 6 months respectively.

Here is a quick sample calculation:
"If a user takes out a loan of 100,000 RWF on our platform with a repayment period of three months at a fixed 9% APR, the total cost of the loan including all applicable fees and interest would be 101,671 RWF The borrower will make three equal monthly payments of 33,890RWF each. The total interest charged will be 1,671 RWF. Now assuming a monthly 1% loan service fee, the total payment after 3 months may increase by 1,66 RWF.”. When a borrower’s application is approved by the lender on our platform, full loan calculations are provided to the borrower for review including late payment fees. Note, there is no prepayment fee exercised on our platform. Any additional charges are explicitly mentioned in a load approval form from lenders.