Most Kenyans don’t have assets to use as collateral, they want to get loans without security. There are several banks and financial institutions offering loans without collateral for business. Here is the list:
—-National Bank
SME Business Loans
What the bank Needs From You*
- Demonstrate your ability to repay the loan
- Demonstrate that you have a minimum of two (2) years in business
- Credit Life Insurance against death & permanent disability
Loan Rates & Fees*
- Interest rate – 13%
- Negotiation fee 3%
- Maximum repayment period of 12 months
—-Kingdom Bank
Unsecured Business Loan
It is a loan facility that provides the working capital for business operations and expansion. It is suitable for retailers, distributors, wholesalers, hardware shops etc.
FEATURES:
- Unsecured loan of up to Kes 3,000,000
- Business stock can be used as security
- Free LNM & KB M-collection linkage
- Consideration of the other banks’ statements, where applicable
- Business registration documents
—-Pesapal
Pesapal Credit provides you with a seamless, affordable, and convenient way to finance your business. Access working capital loans in minutes, without collateral, paperwork, or hidden fees!
- Access unsecured loans
- Instant digital approval and disbursement
- Flexible repayment terms
—-UBA Bank
Unsecured Short Term Overdraft
Manage your day to day cash flow, unexpected business expenses and working capital with a flexible short term facility that gives you increased liquidity, allowing you to run your business smoothly
- Features
• Maximum limit of KES 2 Million
• Maximum repayment period of 30 days
• No security required
Benefits
• Quick cash flow solution for your business
• No security required
• Fast approval process
• Minimum documentation required
Requirements
• Be a UBA account holder for 1 month
• 12 months certified bank statements
—–VisionFund
Business Loans
Asset Financing
This is a loan facility for both existing and new clients to acquire tangible asset for business efficiency and commercial use. They include farm asset financing, livestock fattening, livestock trade, motor vehicles, motorbikes, tuktuk, plant and machinery, tractors, specialized equipment, office equipment, contractor equipment, water pipes etc.
Features
- Financing up to 100%
- Wide range of assets can be financed
- Asset becomes part of the security
Requirements
- 2 guarantors
- Flexible collaterals
Facilities
- Micro loan – Kes. 5,000 – 30,000
- Micro loan – Kes. 31,000 – 300,000
- SGB loan – Kes. 301,000 – 2.5 million
Benefits
- Simple documentation requirements
- Fast processing
- Flexible collateral
- Affordable interest rate
- Flexible repayment period
—-ABSA Bank
Business loan
Benefits of this account
- Unsecured LPO Financing of up to KES 12M
- Unsecured Invoice Discounting of up to KES 50M
- Unsecured Bid Bonds of up to KES 6M
- Unsecured loans of KES 6M with up to 60 months repayment period
- Secured loans of up to 10 years repayment period
- Choose between variable or fixed interest rate – we give you a choice of three interest rate types to suit your business
- Flexible repayment options with a choice of principal and interest or interest only are available
Requirements for this account
- The business must be in existence for 3 years and above
- The minimum facility amount is KES100,000.
Documents required
Limited companies
- Certificate of incorporation or certificate of compliance if not locally incorporated
- Memorandum and articles of association/CR8, CR12
- Company PIN certificate
- National identification card (for Kenyan citizens)/Passport (for foreigners) for all directors (plus ultimate beneficiary owners if company is owned by other companies) and signatories/known agents
- 1 passport-size photo each for all the signatories and directors/known agents
- Board resolution specifying the signing powers on the company letter head sealed with the company seal
- Signed Absa account opening pack (sealed )
- Residential address confirmation (name estate, road and house number) for all directors and signatories (use the attached format)
- Company physical address confirmation (can be found in the new PIN certificates)
- Annual returns (for companies registered over one year ago)
- Revenue stamp – KES100
Sole proprietors
- Certificate of registration
- National identification card (for Kenyan citizens) / Passport (Non Kenyans) 1 passport size photo
- KRA PIN
- Signed Absa account opening pack ( sealed )
- Residential address confirmation ( name estate, road and house number) for all directors and signatories (use the attached format)
- Company physical address confirmation
- Personal return
- Revenue stamp – KES100
—-Family Bank
Biashara Boost Loan
Biashara Boost Loan is specially designed for micro-businesses that require funds to expand their existing business line(s) profitably. The product gives you access to financing of up-to Kes. 5 Million with eligibility to top-up existing loans making use of flexible collaterals and enjoying flexible repayment periods of up to 36 months.
Features
- Borrow flexible amounts ranging from Kes. 5,000 to Kes. 5 Million
- Flexible repayment period of up-to 36 months
- Eligibility to top-up existing loans
Benefits
- Flexible security requirement
- Fast loan processing
Requirements
- A 6-months banking relationship with Family Bank
- New customers from other financial institutions are also eligible
- Business MUST have been operational for at least twelve (12) months
- Ability to repay the loan MUST be clearly demonstrated
—-Equity Bank
Micro Business Loans
This is a niche product, targeting the youth, who comprise the majority of the population, seeking to empower them with the tools and resources they need to create and grow businesses.
Great features
- It identifies and prepares new business markets.
- It provides the youth with a savings vehicle through which they can access a variety of financial services.
- It’s tailor-made to meet specific needs of the youth.
- We have developed a system of business appraisals to determine the youth credit needs.
- It includes business training and advisory services that will respond to the growing population.
Additionally Why you should sign up for this product
- It offers a savings vehicle and tailored loans for working capital, purchase of fixed assets (for business) and business premises improvement.
- It provides financing for projects to do with agriculture such as dairy and horticulture.
- The loan is available to all youth (18-35 years) who are Equity Bank account holders.
—-KCB Bank
SME Term Loans
Choose between a secured or unsecured loan up to Kes. 250 Million, payable over flexible repayment periods, giving you access to financing to drive your business current and long-term goals.
What the bank needs from you
- Breakdown of total project cost and financing plan
- Audited Accounts for the last 3 years for amounts above Kes. 5 Million
—-ASA International
Small business loan
This loan product is designed for those who already have a business and need access to working capital or to capital for expanding their business, but cannot be enrolled in the Small Loan Program or want to be graduated from the Small Loan program. The product supports both women and men with small and medium scaled businesses
Key Features
| Member Admission fees | Applicable |
| Loan Processing Fees | Applicable |
| Frequency of meeting | No Meeting |
| Cash Collateral against principal loan | Applicable |
| Interest of savings | Not Applicable |
| Type of loan product | Small Business Loan to Individual (both male & female) |
| Loan size (1st cycle) | KSH 100,000 |
| Loan duration | 5 months and 10 months |
| 1st loan disbursement | After one week |
| Loan increment each cycle | KSH 30,000 |
| Service charge/Interest Rate | Applicable |
| Mode of repayment | Weekly/Monthly |
| 1st installment | After one week/After one Month |
| Number of installment | 20 weeks / 5 months or 40 weeks / 10 months |
| Installment | 5 months weekly/monthly OR 10 months weekly/monthly |
| Loan insurance/risk premium | Applicable |
| Risk cover | LOP will be written-off in case of borrower death |
| Advance installment | Not applicable if it is monthly for 5 months |
—Mosoni
Business Loans
Financing people to support their own businesses
Fact Sheet
Nawiri
- Amount – 5k – 140k
- Duration – 3 – 12 months
- Registration fee – Free
- Upfront fee – 4%
- Loan cycle – Entry loan
- Eligibility – Business has been in operation for at least 6 months
Stawi
- Amount – 100k – 500k
- Duration – 3 – 24 months
- Registration fee – Free
- Upfront fee – 4%
- Loan cycle – Entry loan
- Eligibility – Business has been in operation for at least 1 year
Shujaa(Individual)
- Amount – 100k – 3m
- Duration – 3 – 36 months
- Registration fee – Free
- Upfront fee – 4%
- Loan cycle – Entry loan
- Eligibility – Business has been in operation for at least 1 year
Loan Products
- Nawiri Loan
- Stawi loan
- Shujaa loan
Bimas Kenya
Biashara loans are available to businesses and individuals in business who need to finance expansion or diversify their business assets. In the changing economic climate, business loans can help strengthen your financial stability during lean periods. By registering as a member of Bimas, we assure to finance you upto Kes.1000,000 to ensure we boost your business and achieve the best out of it.
Benefits
1. Loan amounts are tailored to fit your business needs
2. Flexible Collateral requirements
3. Flexible repayment terms
4. You can get loan upto Kes. 1000,000
Requirements
1. Must be in legal business activity
2. Have business permit and pin certificate where necessary
3. In case of a company, certificate of incorporation is needed
4. Six months bank statement/MPESA statement
SBM Bank
SBM Unsecured MSME Loan Requirements
Eligibility / Documents Required
• Applicant must have an active bank account with SBM for at least 1 year
• Business needs to have been operational for the past 3 years at least
• Business must demonstrate stable cash flows
• Monthly turnover for the business should not have declined by more than 25% in the preceding 90 days
• Businesses in trading sectors should not have NIL banking in any given month over the preceding 12months
• Applicant should have credit life insurance
—-Bank of Africa Kenya
SME Biashara Loan
This is a short to medium term loan granted to customers to finance Expansion and the growth of their business i.e. working capital and business expansion
Target Market
We target Small and Medium enterprises operating in: – Transport, Trade and Commerce, Construction, Manufacturing, Education, Health & other services sector.
Value range
Minimum kes100,000 – Maximum based on client ability to pay
Product features
- Secured by a combination of any acceptable tangible securities such as title deeds, log books, listed shares, cash cover etc.
- Interest rate as per CBK regulation
- Interest rate calculation payable in arrears on reducing balance or flat rate
- Method of loan repayment either EMI or as per the customer cash flows.
- Loan advanced both in Kenya shilling and foreign currency
- Overdraft limit to be advanced for a maximum period of one year renewable
- Trade loans i.e. invoice discounting, LPO, contract financing, certificate financing to be advanced for a maximum period of one year
Credit Conditions
- 12 months bank statement with Maximum EMI(Equated Monthly instalment) of 30% of MACAT(monthly Average Credit Account Turnovers)
- Provide documentary evidence of at least three year experience in the line of business
- Good credit history
- For limited companies Specific debenture over the asset being purchased
Eligibility Items
- KYC documents i.e. directors ID and PIN, Company PIN, MEMART and certificate of registration
- Business records
- Copy of security
- Dully completed loan application as per account mandate and appraisal form, resolution to borrow.
- Current Valuation Report from bank’s authorized valuers is required for used motor vehicles
- Complete security perfection after the approval.
- Detailed call report including photos and sketch maps
—–Sumac Microfinance Bank
Business Loan
Loan Purpose
This is a loan product for entrepreneurs with existing businesses who require a reliable loan facility to boost their businesses. It acts as a working capital, and is one of our flagship products at Sumac.
This loan facility is easily accessible. The following are key features that define this product:
Loan Size:
Ksh50,000 – Ksh10 million
Security & Collateral:
- Title deeds, Log books, Shares or Fixed Deposits
- Third party security arrangement is applicable
Grace Period:
1 month
Access Requirements
- 6 months Certified bank statement
- Licenses and necessary permits
- Business Registration Certificates where applicable
- Sketch Map Area of Residence and business premises
- ID and PIN copies of business owners & Company directors
- Copy of company PIN and Certificate of Registration for companies
- Copy of VAT Certificate where applicable
- Resolution to borrow for partnerships and companies
- Memorandum and Articles of Association for companies
- Current tax and company returns
- Copy of utility bills i.e. water and or electricity
- Evidence of business i.e. contracts, receipts of business transactions etc
- 2 passport size photos
Processing Time:
48 hrs
—Safaricom Business Loan
M-PESA Business Loan
Business Loan is a loan product offered by Safaricom in partnership with Asante. It offers a 1, 7 & 21-day loan facility for the Lipa Na M-PESA Buy Goods Partners (Business till).
- The loan amount ranges between Kshs.100 to Ksh.200,000.
- Asante is a fintech company offering financial services to our Lipa na M-PESA merchants in partnership with Safaricom.
Benefits
The business loan has the following benefits;
- Keeping merchants’ businesses open and afloat.
- Quick and easy access to affordable credit to complete transactions.
- Growth of merchant networks.
- Seamless payments among merchants.
Eligibility
- All Lipa Na M-PESA Buy Goods Merchants who settle funds collected in their M-PESA tills to their MPESA account and have activated the Business till functionality.
- Till must have been active on LNM for a minimum of 3 months (90 Days)
- Merchant will use their nominated numbers to access the service.
- A merchant can only apply for one loan or one till per store at a time.
- Only active tills are eligible
The loan amount ranges between Kshs.100 to Ksh.200,000.
—Mobile Apps
If you want loan of up to Ksh 50, 000,get it from mobile Apps.As long as your name is not listed on CRB,you will get the loan
—Saccos
Saccos are also the best places to get a loan for your business. Join one of the Saccos in Kenya,buy shares and take a loan against the shares. You can also save money and take a loan 4 times your savings.
