Boda bodas and Tuk Tuks are a common sight on Kenyan roads, offering fast and affordable transportation services to millions of people every day. They are also a lucrative business venture for many Kenyans who own or operate them. However, many people wish to have them but lack enough capital or access to credit. But through the KCB Boda Boda Loan, there is a possibility for anyone to own one.
What is KCB Boda Boda Loan?
The KCB Boda Boda Loan is a special loan product from the Kenya Commercial Bank (KCB). It enables you to buy a boda boda or tuk tuk by providing up to 70% financing. The loan also includes an annual comprehensive insurance cover that protects you from various risks, such as accidents, theft, fire, and vandalism. It has flexible repayment terms that match your cash flow and business cycle. You can repay the loan in up to 24 months for tuk tuks and 12 months for motorcycles.
In this article, we will show you how to apply for a KCB Boda Boda Loan in Kenya and what you need to qualify.
Benefits of Applying for a KCB Boda Boda Loan
The KCB Boda Boda Loan is not only a loan but also a business opportunity. With it, you can start or expand your boda boda or tuk tuk business and enjoy the following benefits:
- It can help increase your income and savings through earnings from your boda boda fares.
- You can create employment for yourself and others by operating the business or hiring a boda boda or tuk tuk driver.
- You can improve your credit score and reputation if you repay your KCB Boda Boda Loan on time and build a good relationship with KCB Bank.
- You will be able to access other financial products and services from KCB Bank, such as savings accounts, mobile banking, insurance, etc.
- You can contribute to the development of your community and the economy by providing transportation services and supporting local businesses.
- You will get annual comprehensive insurance coverage for your boda boda or tuk tuk.
- The KCB Boda Boda loan has flexible repayment terms that suit your cash flow and business needs.
Requirements Needed to Access the KCB Boda Boda/ Tuk Tuk Loan
The KCB Boda Boda Loan sounds like a great deal. But just like every other loan product, it comes with some obligations you must meet. Here are the requirements you need to have before applying for a KCB Boda Boda Loan in Kenya:
- An active account with any business institution where you’ve remitted your business proceeds for at least three months.
- A valid driving license for boda boda or tuk tuk.
- Your national identification card.
- A proforma invoice from any boda boda or tuk tuk dealer.
- A negotiation fee of 3% of the loan amount. This is a one-time fee that covers the cost of processing your loan application.
- You need to provide a guarantee by a KCB account holder where a log book is held on simple deposit.
- 30% of the total cost of the motorcycle or tuk tuk. KCB Bank will finance the remaining 70%.
- A banking history with KCB bank for the last 6 months, or group savings history for the last 3 months.
If you meet all of the above requirements, you are now ready to apply for your KCB Boda Boda/ Tuk Tuk loan. You just need to visit your nearest KCB branch, or you can as well apply through their website. KCB will provide proper guidance on the loan application process and how to repay it.