These are loans extended to FIC borrowers for business working capital or investment.
Eligibility Criteria for a Business Loan
- The business should be owned and controlled 100% by the borrower.
- 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:
- Operating license/ trade license/tenant’s agreement/Evidence of bills payment
- Any other evidence of ownership of the business;
- The business should have operated for more than six (6) months.
- For business startup capital, the member must have other sufficient alternative income sources to repay the loan.
- 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
|Five (5) working days
|Monthly/ quarterly/ bi-annually
|At the prevailing rates approved by the AGM
|Interest calculation method
|Loan processing fee
|2% of the approved loan amount
|1% of the amount in arrears 30 days and above accrued monthly
|Loan application fee of 10,000/= and Insurance fees according to insurance policy rates.
|Savings/share capital/guarantors/business/ tangible collateral