One of the biggest challenges Small and Medium Sized Enterprises (SMEs) face in Kenya is lack of credit, which has significantly affected their growth.
Many entrepreneurs in these enterprises have for years lamented the lack of capital to purchase the right work equipment, enough stocking, or for renting spacious rooms, etc., affecting their overall expansions.
When SMEs growth is hindered, it means the economy is at threat, given the integral role the SME sector plays in Kenya’s economy. The sector employs over 86 percent of Kenya’s population and contributes about 45.5 percent of Kenya’s GDP.
While some cannot access capital due to the endless paperwork and requirements from commercial banks, others are unaware of where to access the credit.
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Kenya’s commercial banks and digital lenders have various products for SMEs to access credit. However, the SMEs must meet the requirements to be eligible for the loans.
This article focuses on international loans to help borrowers have more alternatives when searching for credit for business expansions or startups.
What is an International loan?
This is a loan where foreign lenders loan borrowers at a fee. Foreign banks process loans to foreign borrowers and earn an interest fee before the agreed repayment period lapses.
Some of the international loans Kenyans can access are:
Asa International loans
This is one of the biggest international microfinance companies giving credit to women entrepreneurs in Africa and Asia. It is active in thirteen countries on the two continents.
Asa Kenya’s lending approach is based on individual lending via client groups, without joint liability. It offers four types of loans which are Small loans, Small business loans, School fee loans, and Motorcycle loan
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Baltic International Bank loan
Baltic International Bank offers overdrafts for quick short-term financing and credit lines to supplement the company’s assets.
You can get access to trade finance for import and export transactions. It also helps individuals acquire fixed assets, business expansion, and funding real estate acquisitions.
Amerant loans
They have various products to help your business achieve long- or short-term goals. Whether it’s a big company or a startup, Amerant’s loans are designed to fit your business size.
Why International loans?
Some of the loans offered by international lenders have a low interest rate, ranging from 8-13 percent. In addition, no collateral is required, and the Bonds and documents used are easily accessible.
International loans offer free credit protection and insurance and have no application fees or pre-payment penalties.
Eligibility
Most require borrowers to be above 18 years old and from a foreign country.
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Things to do before applying for international loans
- Compare the interest rate
- Visit the lender’s site to check the specific account you need to open
- Check for any additional fee charged
- Visit or call an international loan consultant for more clarifications
How to apply for international loans
Depending on the lender, you can apply for the loans in different ways, either through the site or via an app. Follow the following procedure:
- Visit the lender’s site to check the loan application channel (whether via site or app.
- Register and fill out the application form
- Submit all necessary documents
- Provide your account details
- Apply for the loan and wait for approval