Kenya thrives on the wheels of Micro, Small, and Medium Enterprises (MSMEs) as the sector employs over 86 percent of Kenya’s population and contributes about 40 percent of GDP.
Despite its significant role, Kenya’s MSME sector faces a myriad of challenges, among them inadequate access to credit. Studies list lack of funding as the most common reason small businesses fail.
About 33 percent of small businesses are said to collapse in the first two years, around 50 percent go belly up after five years, and roughly 33 percent make it to 10 years or longer.
This is the challenge Co-op Bank has stepped up to solve by introducing various credit facilities tailored to meet the needs of diverse customers.
The bank introduced the MSME Term Loan, a product that enables customers to access the financial help they need quickly to achieve their business goals.
Co-op bank MSME Term Loan targets business people and allows them to borrow a certain amount for business expansion or to raise business supply capabilities.
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The amount borrowed can be repaid in up to 60 months based on the business level and the type of security provided. Â The interest rate is capped at 13 percent per annum.
Features
Amount of unsecured term loan
- Bronze: Ksh 600,000.00
- Silver: Ksh6,000,000.00
- Gold: Ksh 10,000,000.00
Fully secured term loans
Up to 24 months of repayment for unsecured borrowing
Up to 60 months repayment period for secured borrowing
The loan is available to any business with an active bank account. However, to qualify, the business needs to be in operation for at least 12 months.
Other requirements include a business license for the current year, certified bank statements for 6 months, a copy of KRA, and the National ID.
To apply, visit any Co-op Bank branch or click here for more.
