Business Loan

Business Loan

These are loans extended to FIC borrowers for business working capital or investment.


Eligibility Criteria for a Business Loan

  1. The business should be owned and controlled 100% by the borrower.
  2. In the case of partnerships, all partners must give consent and powers of attorney for the member to borrow on their behalf and use business assets for collateral.
  • The business should be legally acceptable with evidence of ownership such as:
  1. Operating license/ trade license/tenant’s agreement/Evidence of bills payment
  2. Any other evidence of ownership of the business;
    1. The business should have operated for more than six (6) months.
    2. For business startup capital, the member must have other sufficient alternative income sources to repay the loan.
    3. The borrower should be competent in the business.
  • The business should be economically viable, with a projected cash flow that should generate enough income to cover costs.
  • In case the business does not immediately generate income to service the loan, the borrower should have proof of other sources of income.

Terms and Conditions

Maximum Loan amount 3 times total savings and share capital/IUS.

NB: not less than a third of the minimum amount shall be in IUS

Maximum Loan period 24 months.
Grace period Five (5) working days
Repayment frequency Monthly/ quarterly/ bi-annually
Loan Interest At the prevailing rates approved by the AGM
Interest calculation method Reducing balance
Loan processing fee 2% of the approved loan amount
Penalty fees 1% of the amount in arrears 30 days and above accrued monthly
Other fees Loan application fee of 10,000/= and Insurance fees according to insurance policy rates.
Security Savings/share capital/guarantors/business/ tangible collateral