Faulu Bank Kenya is a microfinance Bank under the Old Mutual Group as a subsidiary bank. It was founded by Food for the Hungry( FHI) which is a Christian relief foundation. Their products are tailored to cater to the below-average, economic active poor in the slums. Since 1991, it has risen ranks to become one of the top 20 banks popular and favoured by Kenyans.

Why we recommend Faulu Bank

Faulu Bank is regulated by The Central Bank of Kenya. As a member of the Kenya Bankers’ Association (KBA) and The Association of Microfinance Institutions (AMFI, it has a strong heritage of 25 years and has been recognised as one of Kenya’s fastest-growing banks. Generally, they seek to help their customers grow their investments and protect them by providing transformative and empowerment financial services.

What Loans does Faulu Bank offer & what are they best known for?

Faulu Bank offers both Personal and Business loans. As it is still a microfinance bank, its loans vary in some aspects.

That is to say, their retail consumer loans are mostly check-off loans. These are categorised as:

• Retail – For salaried employees, civil servants and other selected corporates.
• Corporate – For salaried customers whose terms of engagement are dictated by an MOU between Faulu and respective institutions.
• Imara – For Salaried individuals without an MOU with Faulu.
• Unsecured Salary Advance – For customers with Faulu salary account.

The exact cost of a loan with Faulu Bank & a representative example?

Faulu loans are calculated depending on consumer loans and vary because the interest rates applied are different.

For Imara, interest stands at 20% while for unsecured it can go as high as 34%.

Here are other fees included in the costings:

• Processing fees: 3% of loan, (One-off), 1% Discount on setup fee for new and existing customers upon salary switch.
• Credit Life Insurance: 0.6% p.a. of the Principal.
• Annual review fee of Ksh 0.5% of the outstanding balance, applicable for loans running more than 12months.
• Retrenchment cover equivalent to 3 months instalments subject to a maximum of KES. 100,000.

*All fees are deducted from the loan amount.*

Is there a Faulu Banking App

Yes. Faulu has a banking app and it’s available on Google Play Store on Android devices and Apple stores for Apple devices.

You can alternatively visit the company Website to access Faulu services.

To access 24/7 banking services just dial the Faulu USSD *339# with 328585 as the pay bill to deposit money to Faulu Bank via Mpesa.

How can you get a Personal Loan from Faulu Bank?

If you are looking to get a personal loan from Family Bank, consumer/retail loans are the closest to fitting that description. The personal loans go up to 3 million.

Nevertheless, interest rates vary depending on the loan type, duration and loan amount.

As a reminder for the unsecured loans with Faulu, you can get a maximum of 5 times the net salary subject to a maximum of Ksh. 100,000 for a loan term of 3-12 months.

So, to start your application process, you need:

• Employer’s irrevocable letter of commitment for remitting the salary, bonuses, etc. to Faulu Microfinance as security/collateral.
• Faulu Salary account with at least 3 months of consecutive salary remittances.
• Confirmation of employment terms & commitment to remit the salaries to Faulu.
• Current original Payslips. (where applicable)
• Original National ID/Passport.
• Other Loan Set Up Fees (LSUF) -3% Min Ksh.300.
• Credit Life 0.6% p.a. of the loan.

For the Imara loan that is meant for personal development, with a loan size starting from Ksh. 10,000 and Max of Ksh. 3,000,000. Loan term extending to 84 months max.

• Monthly check-off by the Ministry.
• 2 Guarantors from the same ministry as you.
• Net income after loan deduction is not less than 1/3 of total net income gross/basic salary.
• 3 original current payslips.
• National ID copy in A4 size.
• Applicants staff ID in A4 size.
• Loan application filled and signed.
• Copies of 2 guarantor IDs.
• 1/3 rule form filled and certified by the employer.
• 2 certified passport size photos.

How does Faulu Bank Determine your Eligibility and Cost of Credit

With Faulu bank, your cost of credit is determined by checking your CRB status alongside bank statements, relevant documents to determining your paying power and of course within the confines of your eligibility to pay off the loan.

Of course, certain KYCs’ apply here as well.

Amounts, Terms and Interest Rates from Faulu Bank

Faulu microfinance amounts start at Ksh.10,000 and extend to a maximum of Ksh.3,000,000. On the same note, whatever amount you choose, the repayment terms fall between 3 months – 84 months on a repayment rate of about 18%-34%.

Disbursements and Repayments at Faulu Bank

As a standard procedure with all banks, you need an account with the said bank of interest to access their financing services. If you don’t have one, one will be created for you. First Community Bank is no different as it abides on the same principle as well.

Products taken under FCB personal financing are received within 5 working days from the buyer or supplier. This is because they act as a middleman between you and what you need. FCB just facilitates the payment and the borrower pays back the amount in instalments.

What Unique Features does Faulu Bank have to offer

Faulu bank offers quick processing of loans in under 2 hours and flexible repayment periods on their loans.

With their Imara loans, you get a grace period of up to 2 months, while for unsecured you get you a free last expense cover and retrenchment cover of up to 3 months loan instalments.