Microbanking

Are you an investment group, chama or another collective form of savings group with a common agenda to accumulate savings for investments, facilitating small to medium investments? This is the account for you.

Features

• Opening balance of KES. 2,000.00.
• Ledger fee of Ksh 20 per transaction; minimum of KES. 300.00.
• Over-the-Counter (OTC) at KES. 100.00.
• Cheque book available.
• Borrow up to 5 times the amount saved to invest in land, stocks and real estate.
• No limit to the number of withdrawals and deposits per day.

Eligibility Criteria

• Customer to maintain an active account with the bank for at least six months.
• Customer to have serviced their previous loans without default.
• Maximum repayment obligation of Net Household Income (NHI).

Target

• Microenterprises in a business operated for at least 24 months.

Loan Amount

• Minimum of KES. 300,000.00 except for repeat customers.
• Maximum of KES. 3,000,000.00

Loan Disbursement

• Loan instalments to be booked on a weekly or monthly basis as per client’s request.

Collateral

• The borrower to provide cash collateral of at least 10% and the rest to be fully secured by tangible security.
• Stock hypothecation supported by all risk insurance with the bank as a 1st loss payee to the extent of the borrowing. ( Done by Sidian Insurance Agency)

Loan Tenor

• 24 months

Pricing

• Interest at the prevailing market currently at 13%
• Appraisal and disbursement fees at 3% and KES. 1,000.00 chattels registration.

Target Customer

• Customer to maintain an active account with the bank for at least six months.
• Serviced their previous loans without default.
• Maximum repayment obligation of Net Household Income (NHI).

Collateral

• 20% cash collateral prior to application and disbursement.
• The customer must maintain an active account with the bank.
• Amounts above KES. 1,000,000.00 shall be secured using cash collateral, fully charged log books and title deeds.
•  Stock hypothecation supported by all risk insurance with the bank as a 1st loss payee to the extent of the borrowing. (Done by Sidian Insurance Agency)

Loan Tenor

• Maximum 24 months.

Loan Amount

• Minimum of KES. 20,000.00
• Maximum of KES. 3,000,000.00

Loan Disbursement

• Loan instalments to be booked on a weekly or monthly basis as per the client’s request.

Pricing

• Interest at the prevailing market currently at 13%
• Appraisal and disbursement fees at 3% and KES. 1,000.00 chattels registration.