If you are a small business owner in Kenya, you might be interested in the KCB Boresha Biashara Loan. This is a loan product from the Kenya Commercial Bank (KCB), offering up to Ksh 1 Million for micro-businesses that need financing for growth and development. The loan is designed to help you grow your business and achieve your goals.
The KCB Boresha Biashara Loan is only available for existing business owners who have been in business for at least one year and have had a banking relationship with KCB for six months or more. This means you can’t borrow the loan to start a new business but to expand an existing one. The loan has an interest rate of 13% per annum, a one-time negotiation fee of 3% of the loan amount, and a 0.85% insurance fee.
Benefits of the KCB Boresha Biashara Loan
Some of the benefits of the KCB Boresha Biashara Loan are:
- Flexible loan limits: You can borrow up to Ksh 1,000,000
- Flexible repayment period: You can repay your loan for up to 36 months
- Top-up loans: You are eligible to top up an existing loan
Eligibility Criteria
To qualify for the KCB Boresha Biashara Loan, you need to meet the following criteria:
- You must have a business that has been running for at least 12 months. Show proof of your business operations and income by providing a valid business registration certificate or license.
- You must have a 6-month banking relationship with KCB. This means that you need to have an active account with KCB Bank and use it regularly for your business transactions.
- You must have a steady income from your business, a good credit history, and be able to demonstrate your ability to repay the loan.
- You must have the following documents: your national ID, KRA PIN, a 6-month bank statement, and business records.
Collateral Requirements
Depending on the amount of loan you want to borrow, you need to provide different types of security, or collateral. This will guarantee your loan repayment in case you default. The following are the collateral requirements for different loan amounts:
- If the amount you are borrowing is below Ksh 500,000, you must provide household or business assets and a guarantor as security.
- If the amount you are borrowing exceeds Ksh 500,000, you must provide a title deed, cash cover, livestock, logbook, and shares allowed as collateral.
If you meet the eligibility criteria and have the required security or collateral, you can apply for the KCB Boresha Biashara Loan. Visit any KCB Bank branch near you and fill out an application form. If you have more questions about the loan, you can send them an inquiry through the contact form on their website. They’ll get in touch with you and provide more information, including the application and loan repayment processes.