The Kenya Commercial Bank (KCB) introduced a number of business loans to meet the different needs of individuals across the country. The Business loans offered, have a varying interest rate which depends upon the type of loan product offered.
The business loans offered by KCB targets Business names, Sole proprietorships, and Limited companies and can be used to cover business expansion costs, working capital, acquisitions of assets among other business needs.
For a business to qualify for a loan, it has to meet certain requirements which include;
- Business Certificates such as Certificate of Incorporation, KRA PIN, Memos and Articles of Association.
- Bank statements of the business for the last six months.
- Business cash-flow statements and other forms of business income (Account audit reports).
- Business loan application form giving the details of the applicant.
Advantages of Business Loans
- The loan amount depends on the ability to repay
- Flexible security requirements
- Flexible repayment terms of up to 4 years
- Competitive interest rates.
- Quick loan processing and approval procedures upon application of the loan.
Business Loan Collaterals
- Debenture on assets
- Title deeds
- Life insurance policy
- Prime property
- Motor Vehicle log books
- Cash secured in a fixed account.
Top 5 Business Loans Offered by KCB Bank
The following is a list of KCB business loans in no particular order. To find out more about the loan, contact your nearest KCB bank.
Boresha Biashara Loan
Boresha biashara loan is a short-term loan which is specifically meant for individual traders who require additional finance for their day to day running of their businesses. This type of loan targets individuals operating an informal business or a registered business entity.
Benefits of Boresha Biashara KCB Loan
Boresha biashara has several benefits to people in business at various levels, these benefits include the following:
- Businessmen have Access to loans ranging from Ksh 5,000 to 1 million.
- The loans offered, have flexible repayment terms of up to 36 months.
- Flexible security requirements.
- A one-off loan negotiation fee charged upfront at 3% of the loan amount
Boresha Biashara Loan Eligibility
To qualify for this type of loan, one has to;
- Have a KCB Boresha Biashara account or Bankika Business Account.
- Have a regular cash flow to meet monthly loan repayment
- Demonstrate an ability to pay.
- Provide a 6 months bank statement from any financial institution.
- A minimum of 1-year experience in the business to be financed.
Boresha Biashara Plus Loan
This loan targets small business owners with annual sales turnover of up to Ksh 10 million who require working or investment capital to grow their business.
Advantages of Boresha Biashara Plus Loan
- The loan ranges from Ksh 1 million to 5 million.
- Ability to top-up existing loans.
- Flexible repayment terms of up to 60 months.
- Flexible security requirements.
- A one-off loan negotiation fee charged upfront at 3% of the loan amount.
Qualification Requirement
- Ability to repay
- Certificate of incorporation/business registration certificate.
- Six months bank statement from any financial institution
- Minimum 1-year experience in the business to be financed
- Regular cash flow to meet monthly loan repayment
- Have a KCB Boresha Biashara account or Bankika Business Account
Boda Boda Tuk Tuk Loan
The Boda Boda Tuk Tuk Loan is aimed at financing individuals to purchase motorcycles and Tuk Tuks.
Advantages
Tuk Tuk loan
- Loans up to 90% of the purchase price (Max 5,000,000 plus insurance) with a repayment period of up to 24 months.
- Comprehensive Insurance per annum of Ksh 15,000.
Boda Boda loan
- Loans up to 90% of the purchase price (Max 5,000,000 plus insurance) with a repayment period of up to 24 months.
- Special price offers from dealers
- Motor service available from dealers
- Comprehensive Insurance per annum of Kshs 9,600
Loan Eligibility
- An active account with any business institution where business proceeds are remitted for at least 3 months.
- Valid driving license of the rider/driver
- Capability to service required monthly installments
- Proforma invoice from motorcycle and Tuk Tuk dealers
Tuungane Chama Loan
These loans target group members running successful micro-enterprises who have been brought together by common interests.
Benefits
- Access to loans ranging from Ksh 5,000 to Ksh 1,000,000
- Flexible repayment terms of up to 24 months
- Flexible security requirements
- Free financial and investment advisory/training
Loan Qualification Requirements
- A registered self-help group practicing co-guarantee lending or table banking.
- A running business or group involved in table banking
- A group of 5-30 members.
- Ability to repay the loan
- Willing to undergo financial training prior to dispatch of loan
Tuungane Investment Loan
This type of loan is designed to provide financial aid to investment groups. The loans provide financing for the purchase of shares, bonds, property, for construction, assets, finance, property, and agribusiness
Advantages
- Free business advisory and training services
- Access to loans ranging from Ksh 500,000 up to 250 million
- Flexible repayment terms of up to 6 years
- Flexible security requirements
- Access to loans of up to 10 times the total group’s savings
- Free financial savings and investment advisory/training
Loan Eligibility
- Ability to repay the loan
- Must be in an investment group which is registered as a company.
- Group of 5- 30 members
- A running business group
- Willing to undergo financial training prior to dispatch of the loan.
- Banking history of at least 6 months in a financial institution.
KCB Bank is one of the tier 1 banks in Kenya
