|
Getting your Trinity Audio player ready...
|
Access to credit is one of the challenges affecting women-led businesses in Kenya. According to the Kenya National Chamber of Commerce and Industry (KNCCI), only 26.3 percent of women-led MSMEs in Kenya are able to access formal financial services.
Most women-owned businesses operate informally and are thus excluded from mainstream financial services due to lack of registration, proper documentation, and collateral.
The product mismatch in loan structures, such as high interest rates and inflexible repayment terms, further disincentivizes borrowing and growth.
To address this gap, financial institutions are rolling out tailor-made credit products to ensure women-led enterprises are not left out of funding.
The Co-op Bank’s Msamaria Women’s Loan is a good example of such products. The loan product offers financial empowerment to women who are seeking working and investment capital.
Through the product, women entrepreneurs can access unsecured loans of between Sh5,000.00 to Sh10 million with a repayment period of 24 months.
Co-op Bank account giving Kenyans cash advances and loans
It also comes with an insurance benefit that covers breast/cervical cancer, critical illness, personal accident, death, and permanent total disability.
The requirements to access the loan include a Copy of the KRA PIN and certified bank statements from other banks if your Co-op Bank account is less than 6 months old.
The bank further demands that businesses seeking to get a Msamaria loan should at least be a year old, have a regular cash flow, open an account with Co-operative Bank, and have a valid license, among others.
“Acceptable security will include but not limited to chattels mortgage over household, business assets, land, NSE” the lender states.
Features of Msamaria Women’s Loan product:
- The package has Flexible Working capital loans for operational & investment expenditure.
- Unsecured Limits from Kes5,000.00 of up to Kes.10Million with a repayment period of 24 months.
- Empowerment Trainings & Networking Forums
- Insurance Package Benefit- Femina Medical Cover, Critical illness cover, Personal Accident cover, Death & Permanent Total Disability.
Requirements
- Have a business not less than a year old
- Business should have regular cash flow
- Business license of the current year where applicable
- Open an account with Co-operative Bank
- Provide certified bank statements from other banks if your Co-op Bank account is less than 6 months old
- Acceptable security will include but not limited to chattels mortgage over household, business assets, land, NSE se
- Copy of KRA PIN
To apply for the loan, visit the nearest Co-op Bank branch.
