Understand borrowing
Borrowing.
Understand before you agree.
Purpose, total cost, dates and obligations: four things to understand first.
01 / ASK THE RIGHT QUESTIONS
Look beyond
the interest rate.
A low headline rate does not tell you every cost or when money will be needed.
- 01
What will I actually receive?
Distinguish the stated loan from the amount delivered after deductions. Ask about payments needed before disbursement.
- 02
What will I repay in total?
Request the repayment schedule and all interest, service and other required charges. Do not count charges already included a second time.
- 03
When is it due, and what if I am late?
Match due dates with expected receipts. Understand late payment, early settlement, collateral and guarantor obligations.
02 / A LEARNING EXAMPLE
The whole cost
tells a fuller story.
Illustrative figures only, not Birunga or bank offers. Both examples provide 300,000 RWF over 12 months.
| What to compare | A | B |
|---|---|---|
| Amount received | 300,000 RWF | 300,000 RWF |
| Monthly payment, 12 times | 28,000 RWF | 29,200 RWF |
| Total instalments | 336,000 RWF | 350,400 RWF |
| Extra charge paid separately | 6,000 RWF | 0 RWF |
| Total paid | 342,000 RWF | 350,400 RWF |
| Cost above amount received | 42,000 RWF | 50,400 RWF |
This example assumes no other charges and all payments on time. It compares totals only; it does not calculate an annual percentage rate.
Go into the
conversation prepared.
If repayment becomes difficult, contact the SACCO early and keep a record of what is agreed.
Reviewed on 8 September 2026. These are general learning resources; ask Birunga SACCO for its own prices and terms.
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