Comprehensive List of Loans from Co-operative Bank of Kenya

Updated on June 7, 2024 – Added a new section on how to apply for a car loan. Also included FAQs to aid better understanding.

In this article, you will learn about Co-Operative Bank Loans.

Can you have access to the Co-operative Bank of Kenya loans? Well, we will find that out in a few.

The Co-operative Bank of Kenya is a publicly listed bank that aspires to be the leading and dominant Kenyan bank with a strong countrywide presence, playing a central role in the co-operative movement.

Through its network of Co-op agents scattered across the country, it is evident that the bank in pacing up to be at the top.

The co-operative bank realises that to actualise its dream, offering loans to the masses would win their hearts.

Considering that many people in Kenya, salaried and non-salaried have different needs at some point in life, loans will always be of importance.

Read also: How to get SME loans in Kenya.

These needs could be urgent such as medical bills or school fees while others could not require fast actions.

They make these people seek a way of settling them by looking for money in different places.

Most of the salaried individuals with bank accounts tend to take salary advances and loans from banks which they later pay after they get their salaries.

From its development, the Cooperative Bank of Kenya aimed at offering value-added financial services to chosen market segments. Co-Op bank is one of the tier 1 banks in Kenya

List of Co-operative Bank loans in Kenya

The bank offers:

1. Personal Loan

This is meant for salaried individuals who have had their bank accounts with Co-operative bank for more than six months and through which their salaries are processed.

These individuals can, therefore, get a loan of a minimum of Ksh 50,000 and a maximum of Ksh 4 million, which is repayable to up to 60 months anytime they need the funds for different purposes.

2. Business loan

This offers the small and emerging businesses the funding they need to grow. The credit is available to all business owners and is being provided at affordable rates.

Co-operative Bank Loan Requirements

To be considered for Biashara Plus, a customer will have run the business for at least one year, and be registered and exist on a permanent premise.

This explains the ‘Plus’ name to the loan, as the funding is intended to help the customer expand an existing business.

Besides, customers who manage to repay the loan on time as provided for in the agreement are given a 20% rebate on a loan repayment on the next Biashara Plus facility.

 

Another attractive feature of the loan is that customers have the chance to get funding without having to secure the loan.

As the bank may instead consider other business assets, e.g. business stock, household assets, personal guarantees and other movable and fixed assets as sufficient to secure the funding.

Co-operative Bank Loan Rates

After the interest cap that was enforced by the government, Co-operative bank among other banking giants in Kenya like KCB have revised their interest rates to ensure that the borrowers get more value from the loans that they acquire.

Co-operative bank particularly has an interest rate not exceeding 13.5%.

The benchmark rate, on the other hand, stands at 9.5%. The decision to fix the benchmark rate at 9.5 per cent was informed by the need to support economic activity in the changing business environment.

Co-operative Bank M-Pesa Loans

Co-operative Bank launched its mobile banking service that enables customers to borrow loans through their phones, in a direct challenge to M-Shwari and Equity Bank’s system.

The Nairobi Securities Exchange-listed bank Thursday unveiled M-Co-op Cash, a mobile-based platform offering small loans, account opening, utility payments, funds transfer, airtime top-up, and cash withdrawal services through mobile phones.

Co-op is banking on the mobile service to grow earnings from transaction charges, as M-Co-op Cash levy’s a one-off seven per cent fee for secured personal loans of between Sh100 and Sh200, 000 repayable within 30 days.

 

M-Co-op Cash offers a range of mobile-based credit disbursements such as business loans that attract a similar one-off fee of 7% and salary advances and unsecured loans at 10%, all repayable within a month.

Related: Loans offered by the Agricultural Finance Corporation

It enables both customers and non-customers across all networks to open bank accounts, apply for loans straight from their mobile phones and also make cash and utility payments.

With MCo-op Cash, you can access these services:

1. Apply and pay for a loan
2. Send money to other mobile money services, for example, M-PESA
3. Pay bills, for instance, KPLC, DStv, KRA Tax and Insurance
4. Pay fees, for example, school fees or rent
5. Activate SMS alerts for debits and credits
6. Buy airtime for any mobile number
7. Deposit or save money
8. Send money to another M Co-op Cash Account, Co-op Bank Account or SACCO Account
9. Withdraw cash at a Co-op Agent or Co-op ATM
10. Transfer money to and from your Co-op Account or SACCO Account
11. Pay for goods and services
12. Check your account balance or get a statement
13. Buy, sell or transfer shares

Co-operative Bank of Kenya Business Loans

1. Asset Finance

Assets are critical to any business. Expand your business with asset finance from Co-op Bank without tying up any other property or asset as collateral!

Asset Finance gives you the flexibility to finance your moveable assets without tying up any other property or assets as collateral. This is because the asset being financed becomes security.

Asset Finance frees up your cash and helps you acquire much-needed assets with minimum fuss while paying for the asset in easy monthly rentals of up to 48 months.

With the asset acquired generating income for you, it practically pays for itself!

Features

• Competitive pricing in both local and foreign currency
• Flexible repayment period of up to 48 months
• Financing of all types of moveable assets such as laptops, computers, printers, saloon cars, pickups, tractors, prime movers, school buses, generators, medical equipment, etc.
• Financing of both new and second-hand assets
• Insurance premium financing for the assets purchased with the option of renewing it periodically throughout the facility and beyond
• Automatic reminders of insurance expiry

2. Biashara Plus

Are you operating a small business? Take the strain out of your business by taking a Biashara Plus loan facility. Healthy cash flow is a vital part of running any company for its operations to run smoothly and successfully.

The Biashara Plus loan facility is a credit facility for small and micro-enterprise owners.

Features

• Loans available from Ksh 5,000 to Ksh 2 million
• The repayment period is between 12 to 24 months
• Interest is tiered and depends on the amount borrowed
• The appraisal fee is at a flat fee of 2.5% of the approved amount
• Rebate – an incentive of 20% of the total interest is refunded to the prompt borrowers

3. Bizwise Current Account

If you are looking for business solutions, then this is the account for you. Whether you have an established business, starting up a business or looking to switch banks, Bizwise Current Account is the perfect solution for you.

As a Bizwise Current Account holder, you will have access to SME Bizwise loan which allows you to borrow up to Ksh 50 million.

Features

• Minimum opening balance of Ksh 2,000
• Operating balance – Nil
• No maintenance fee
• Free cash deposits
• No charge on local cheque deposits
• Charges levied only upon withdrawal (Ksh 35 per transaction)
• Free monthly account statements
• Free monthly standing orders
• Cheque book available
• Co-op Net (online banking services)
• Agency banking
• Mobile banking

4. Business Current Account

As a businessperson, you need more straightforward banking tailored to who you are and what you need!

This account is designed to offer a convenient means of managing transactions and payments for businesses.

Features

• Easy-to-effect deposits and withdrawals
• A chequebook is issued to facilitate payments
• Monthly statements issued to track transactions
• Loan facilities

5. Business Mortgage and Construction Loans

Turn your blueprints into buildings. The co-operative bank finances construction or renovation of residential or commercial properties.

These loans are granted for up to a maximum period of 20 years for single dwelling units and ten years for residential, business units.

Features

• Competitive interest rates
• Affordable instalments with a repayment period of up to 20 years
• We also give you a moratorium (grace period) of six months
• The house you purchase can be used as collateral, and its rental income can be used to repay the loan

6. Haba Na Haba

Build your business resilience as you grow your business by opening a Haba na Haba Access Account.

Running a small business can sometimes face a host of challenges. Rewarding challenges, but harsh nonetheless.

It is, therefore, crucial to have a financial partner who will walk with you in every stage in your business journey.

Features

• No minimum operating balance
• Access to funds as many times as required
• The account holder can access business loans
• Debit card available for withdrawals as well as for payments purposes at all VISA branded points
• Low monthly ledger fee
• Offers transactional solutions to account holders
• Convenient mobile banking and internet banking available

7. Msamaria Women’s Loan

Msamaria Women’s Loan provides financial empowerment for women who are seeking working and investment capital.

This loan facility aims at accelerating women’s economic empowerment by providing affordable and usable finance towards their businesses.

What Is The Repayment Period?

• Ksh 5,000 to 300,000 – 12 months
• Ksh 300,000 to 1,000,000 – 18 months
• Above Ksh 1 million – 36 months
• The maximum loan amount is Ksh 10,000,000

8. SME Loans

Business loans should create a positive impact and help solve your business needs. The co-operative bank is a strong, reliable and committed partner providing finance that is structured according to the needs of your business.

The following are various SME Loan products available for you to choose from:

SME Co-op Business Loan/Working Capital

This loan product can be used to finance working capital and expenses of a capital nature, for example, premises, machinery, motor vehicles, etc.

In the case of smaller businesses or where there is a risk of diversion of funds and monitoring of the overdraft would be too expensive, loans are the recommended method of lending as they are easier to monitor.

Hybrid/Partially Secured Loans

This category of loans is granted to customers who have demonstrated a capacity to repay but lack adequate securities to cover the required amount fully.

For hybrid security loans, the borrower pledges chattels to cover the portion not fully covered by physical securities. For a partially secured loan, the borrower provides securities to cover up to a minimum of 50%.

Unsecured SME Loan for Businesses

The product targets SME customers with evidenced repayment and good cash flow but lacks physical securities.

Borrowers must evidence repayment ability and must have satisfactory account conduct. The primary target for the unsecured lending product is traders with regular cash flow.

How to Qualify for Co-operative Bank Car Loan

Cooperative Bank offers up to 100% vehicle financing, subject to specific terms and conditions. To qualify, borrowers must meet the bank’s set requirements, ensuring they can effectively manage and repay the loan.

Loan Requirements

To apply for a vehicle loan, you must provide the following documents:

• Your ID and KRA PIN Certificate
• A letter of introduction from your employer
• Certified pay slips for the last 3 months
• Bank statements for the last 6 months (if you do not bank with Cooperative Bank)
• Copies of your employment contract or letter of appointment
• Motor vehicle sales agreement or proforma invoice
• Copy of the logbook, import documents, or NTSA search records
• An original valuation report from an approved valuer on the bank’s panel

Application Process

1. Complete the loan application form.
2. Attach all required documents.
3. Submit your application to your preferred Cooperative Bank branch.

Loan Approval Criteria

Approval is based on the 5 C’s of Credit, which help the bank assess your suitability for the loan and determine the maximum loan amount:

• Character: Your credit history.
• Capacity: Your debt-to-income ratio.
• Collateral: The value of the vehicle as security.
• Conditions: Market factors, such as interest rates and economic conditions.
• Capital: Your financial commitment towards buying the vehicle.

Post-Approval Steps

After loan approval, the following steps must be taken:

1. You will receive an offer letter to sign and present to the vehicle dealer.
2. Pay any required deposit to the dealer.
3. The dealer signs off and initiates a joint vehicle transfer to you and Cooperative Bank.
4. Return the signed offer letter and the original vehicle logbook to the bank.
5. Pay for vehicle tracker installation from an approved company in the bank’s panel.
6. Purchase comprehensive vehicle insurance and submit the insurance confirmation form noting the interest of Cooperative Bank.
7. The bank issues a release letter to the dealer and clears the vehicle payment amount.
8. You can then proceed to pick up your vehicle.

Post-Purchase Responsibilities

• Monthly Repayments: Continue to make monthly loan repayments until the loan balance is cleared. Failure to repay may result in vehicle repossession and negatively impact your credit history.
• Insurance Claims: If the vehicle is stolen or written off, the insurance company will pay the bank directly. The bank will clear the loan balance and deposit any remaining funds into your account.
• Grounded or Stolen Vehicles: Loan repayment must continue even if the vehicle is grounded, stolen, or written off unless the bank issues special communication.

Smart Loan Repayment Tips

• Lump Sum Payments: Consider making lump sum payments to reduce the principal, lower interest expenses, and shorten the loan term.
• Request a Moratorium: If you face short-term repayment challenges, write to the bank to request a moratorium, allowing for temporary relief and resumption of consistent payments later.
• Vehicle Repossession: If your vehicle is repossessed, paying the loan arrears and auctioneer fees can help you reclaim your vehicle and continue with loan repayments.
• Selling Your Vehicle: If you wish to end the loan obligation early, you can arrange a tripartite agreement involving you, the buyer, and Cooperative Bank to sell the vehicle.

Following these steps and tips can help ensure a smooth experience with Cooperative Bank’s vehicle loan services and maintain a positive financial standing.

FAQs – List of Co-operative Bank of Kenya Loans

What types of loans does the Co-operative Bank of Kenya offer?

Co-operative Bank offers a diverse range of loans tailored to individual and business needs, including business loans, personal loans, mortgage loans, microfinance loans, asset financing, and SME loans.

What are the eligibility criteria for Co-operative Bank loans?

Eligibility criteria vary depending on the type of loan, but common requirements include proof of income, collateral (if applicable), satisfactory credit history, and adherence to the bank’s lending policies.

What are the interest rates and repayment terms for Co-operative Bank loans?

Interest rates and repayment terms vary depending on the specific loan product and the applicant’s creditworthiness. Co-operative Bank offers competitive interest rates and flexible repayment options tailored to suit individual circumstances.

How can I apply for a Co-operative Bank loan?

Applications for Co-operative Bank loans can be made through various channels, including online banking platforms, mobile apps, branch visits, or by contacting the bank’s customer service representatives.

Is there a grace period or penalty for early repayment of Co-operative Bank loans?

Terms and conditions regarding grace periods and penalties for early repayment may vary depending on the loan product. It’s advisable to review the loan agreement or consult with a bank representative for specific details.

Conclusion

Co-operative Bank of Kenya offers a comprehensive suite of loan products designed to meet the diverse financial needs of individuals and businesses. Whether you’re looking to start a business, purchase a home, finance education expenses, or expand your enterprise, Co-operative Bank provides tailored solutions with competitive interest rates and flexible repayment terms. 

With a commitment to financial inclusion and empowerment, Co-operative Bank remains a trusted partner for individuals and businesses seeking to achieve their goals and aspirations.