Cooperative Bank List of Loans, how to Apply for the loan and interest rate

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Cooperative Bank is one of the best banks in Kenya to take a loan from. The bank charges interest of 9% to 18% per year. They offer personal loans, salary advance, mortgages, chama loans and asset financing. You can also apply for a loan to buy a laptop, car or any other movable asset. Mortgage has a repayment period of up to 20 years.

List of basic documents required to apply for a loan at Cooperative Bank

  • Copy of KRA Pin
  • Cooperative Bank account
  • Pay slip

Loans for businesses require documents like Business Registration Certificate and a bank statement of up to 6 months.

How to apply for a loan at Cooperative Bank

Visit any Cooperative Bank Branch. You will be provided with a form to fill. Select the type of loan you wish to apply for and present the documents required by the bank. They will decide the amount of money to give you as loan based on your income and financial status.

Can you get a loan from Cooperative Bank if you are in CRB

In most cases, Cooperative Bank does not check whether your name is in CRB.Even if you are listed among defaulters in CRB, you will still get a loan from the bank.

Cooperative Bank will only check whether you have a previous unpaid loan in order to award you a loan. They will also calculate the loan amount to be given based on your financial position or your pay slip.

Can I get a loan at Cooperative Bank while Servicing another loan with another bank?

Yes, you will get alone as long as your pay slip indicates that you are capable of repaying the loan

Can I get a loan while I have another loan at Cooperative Bank?

Yes, but this time you will get a top up loan. Assuming that you pay Ksh 20,000 monthly and your net salary is Ksh 70,000. They will give you a loan where they deduct a maximum of Ksh 20,000 monthly. Normally, the loan amount deducted should not exceed 2/3 of the net income.

List of Cooperative Bank Kenya loans

MCo-opCash

This is a loan you apply through your mobile phone.

Features of the loan

  • Borrow from Ksh 1,000 to Ksh 500,000
  • Loan repayment is between 1-3 months
  • Receive your salary through Co-op Bank account
  • Apply through dialing *667#

Requirements for the loan application

  • Open a salary account with us
  • Copy of KRA PIN
  • Register on Mobile banking (MCo-opCash) to access this service.

To get a maximum of Ksh 500,000 Lon, you must be earning more than Ksh 200,000 per month. This is because the maximum repayment period is 3 months.

Interest rate is 1.16% per month. They also charge 3% processing fee and 10% excise duty.

This means that if you take a loan of Ksh 500,000, you will end up repaying Ksh 600,000 to Ksh 700,000 after 3 months.

Flexi Plus Salary Advance loan

You may get broke before the payday, forcing you to apply for salary advance. Cooperative Bank offers the best salary advance in Kenya.

Features

  • Borrow from Ksh 10,000 to a maximum of Ksh 500,000.
  • Recovery is done within 4 to 12 months
  • Two guarantors required (min) at least one is a colleague
  • Operated salary accounts for at least three months.
  • Negotiation of 3% and a competitive interest rate plus government levies

Requirements

  • Open a salary account with Cooperative Bank
  • A Copy of KRA PIN

The interest rate is 12% to 18% per year.

The shorter period you’ll take the lower the interest rate.

Personal Loan

When you apply for a personal loan, the bank takes up to 48 hours to credit your account. Personal loan will help you pay school fees, start a business, finance a wedding or use it for personal purposes. To get the loan, you must have a salary account which you have operated for at least 6 months. The salary account will determine the amount of money they will award you.

Features of the personal loan

  • Minimum loan amount of Ksh 50,000
  • Maximum loan amount of Ksh 8,000,000
  • Maximum term of up to 96 months
  • Purposes to be covered include education, medical, furniture, consumer durables, motor vehicles, plot purchase, holidays and shares
  • Applications to be appraised using credit scoring
  • Applications appraised within 48 hours

Requirements to get the loan

  • Employed individuals or individuals with a regular income
  • Original National Identity Card and a copy
  • No specific minimum net salary is required
  • Salary pay slips for the last 3 months
  • Filled in loan application form
  • Copy of KRA PIN

Personal loan interest rate is 1% to 2.5% per month.

Asset Finance

The loan is meant to finance movable assets like cars, tractors, boda boda, laptops, smartphones, solar panels, generators and other items. Cooperative Bank finances up to 80% of the cost of a product. They can award you a loan of Ksh 5 million or as little as Ksh 50,000.

Features

  • Financing of up to 80% for both new and second hand assets
  • Competitive pricing in both local and foreign currency
  • Flexible repayment period of between 60 to 96 months
  • Automatic reminders of insurance expiry

Requirements

  • Copies of identification
  • Invoices and/or importation documents
  • Copy of KRA PIN

Interest rate is between 12% and 18% per year.

Mkopo wa Kujengana

Mkopo wa Kujengana is a loan given to a group or Chama. If you have a group account at the bank,you can take the loan and develop something with it.One of the common uses of the loan is buying land which you share among the members. The loan is 5 times the accumulated savings. Assuming that the savings are Ksh 2 million, the total loan amount will be Ksh 10 million.

Features

  • Get up to 5 times the accumulated cash collateral savings
  • A cheque book
  • Co-op Cash debit card
  • Monthly statements

Requirements

  • Members qualify for the loan after 8 weeks of training
  • The loan is based on a co-guaranteeing mechanism
  • Copy of KRA PIN

It’s important to invest chama account than just saving where you don’t benefit at all. If you don’t save the money in fixed deposit account, save it in Money Market Fund and earn interest of 10% to 18% per year.

Good Homes Mortgages

Features

  • Wide array of mortgage product offerings, that is, purchase, construction and equity release
  • The mortgage is available in KES, USD, GBP and EUR
  • Higher financing percentages to enable you to own your home with ease
  • Dedicated personal banker to walk you through the process
  • Flexible and competitive rates
  • Automatic qualification for a credit card
  • End-to-end real estate solutions including project financing and end-buyer financing

Requirements

  • Commitment fees for the mortgage
  • Stamp duty for transfer of property – 4% of property value for Nairobi, Mombasa and Kisumu and 2% of property value for upcountry properties
  • Stamp duty for registration of charge – 0.1% of the loan amount
  • Legal fees – between 1.5% and 2% of the loan amount
  • Valuation fees – approximately 0.25% of the property value
  • Insurance fees – for life cover over the applicant’s life and for fire (and other perils) over the property taken as security for the mortgage

The mortgage interest rate is 9.99% to 15% per year. Repayment period is 10 to 20 years.

LOANS FOR BUSINESS

Asset Finance – Business

Asset financing is a loan given for movable assets. The repayment period is up to 48 months.

Items financed for include laptops, smartphones,TukTuk ,cars and boda boda.

Requirements

  • Copies of identification documents, that is, Memorandum & Articles of Association as well as Certificate of Incorporation (for registered companies)
  • Business Registration Certificate
  • Identity cards for borrowers who do not have registered businesses
  • Identity cards for directors of registered companies and registered businesses
  • Bank statements for 6 months
  • Audited accounts for loans above Ksh 10 million
  • Resolution to borrow (for registered companies) and details of business location
  • Invoices and/or importation documents

The interest rate is between 9% and 15% per year.

Business Mortgage and Construction Loans

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

Requirements

  • Copies of identification documents, that is, Memorandum and Articles of Association as well as a Certificate of Incorporation (for registered companies)
  • Business Registration Certificate
  • Identity cards for borrowers who do not have registered businesses
  • Identity cards for directors of registered companies and registered businesses
  • Bank statements for 6 months
  • Audited accounts for loans above Ksh 5 million
  • Resolution to borrow (for registered companies) and details of business location
  • Necessary approvals by City Council, the local authorities, NEMA and securities to be provided

Interest rate is between 9.9% and 15% per year

Mortgage is ideal for people with stable jobs.

MSME Overdraft Working Capital

This is money you can borrow for business. Repayment period is up to 60 months.

Amount of unsecured term loan

  • Bronze: Kes 600,000.00
  • Silver: Kes 6,000,000.00
  • Gold: Kes 10,000,000.00

Fully secured term loans

Up to 24 months repayment for unsecured borrowing

Up to 60 months repayment period for secured borrowing

Interest rate is between 10% and 17% per year.

MSME Term Loan

The loan is also for business. The amount is between Ksh 600,000 and Ksh 10 million. Interest is from 10% to 17% per year.

Features

Amount of unsecured term loan

  • Bronze: Kes 600,000.00
  • Silver: Kes 6,000,000.00
  • Gold: Kes 10,000,000.00

Fully secured term loans

Up to 24 months repayment for unsecured borrowing

Up to 60 months repayment period for secured borrowing

Requirements

MSME LOANS – Flat rate

  • Interest Rate – 13 % P.A
  • Application/ Negotiation Fees – None
  • Appraisal Fees – 2.5%
  • Max Tenor – 36 months

MSME LOANS- Reducing balance

  • Interest Rate – 13 % P.A
  • Application/ Negotiation Fees – Kes. 3,000.00-Kes. 15,000.00 (depending on amount)
  • Appraisal Fees – 3%
  • Max Tenor – 36 months

Mkopo wa Kujengana – Business

It’s a loan for a group. The loan amount is up to 5 times the savings. Members will undergo up to 8 weeks of training before they are given the loan.

Msamaria Women’s Loan

It’s a loan given to women to empower their businesses.

Features

The Msamaria Women Loan Product features are as follows:

  • The package has Flexible Working capital loans for operational & investment expenditure.
  • Unsecured Limits from Kes5,000.00 of up to Kes.10Million with a repayment period of 24 months.
  • Empowerment Trainings & Networking Forums
  • Insurance Package Benefit- Femina Medical Cover, Critical illness cover, Personal Accident cover, Death & Permanent Total Disability.

The Msamaria Digital Loan Product features are as follows:

  • Business E-loan Solutions available – Business Plus, Business plus Refinance & Business plus Top up
  • Delivery Channel – Available on USSD (*667#) and Mco-opcash APP
  • Loan limit – minimum Kes 100 – Max Kes 1M
  • Loan Tenure –  1-6 Months
  • Target Customers – Individuals, registered partnerships, Business Enterprises and limited Companies

Requirements

  • Have a business not less than a year old
  • Business should have regular cash flow
  • Business license of the current year where applicable
  • Open an account with Co-operative Bank
  • Provide certified bank statements from other banks if your Co-op Bank account is less than 6 months old
  • Acceptable security will include but not limited to chattels mortgage over household, business assets, land, NSE se
  • Copy of KRA PIN

Club Special Loan

You can get a loan of up to Ksh 50 million. This is a loan for chamas and groups.

Features

  • Maximum loan amount of up to 50 million or 5 times the group’s savings
  • Repayment period of up to 72 months
  • 100% financing of the project cost
  • Affordable interest rate
  • The loan is accessible to groups as a corporate body

Requirements

The group must be registered with the concerned registering body e.g. ministry of social services, ministry of gender etc.

  • Group account operational for 6 months with Co-operative bank or with other banking institutions
  • Open Mshiriki current account and an investment company account with the Co-operative bank
  • Group must be making monthly contributions through the Mshiriki account

Overdrafts

Features

  • Utilization is on a need basis
  • Interest payment is on what has been utilized
  • May be repaid off at any given time without any penalties
  • Is an easy source of stop-gap financing to bridge short term operating cash flow differences.

Requirements

  • Copies of identification documents, that is, Memorandum and Articles of Association (for registered companies)
  • Certificate of Incorporation (for registered companies)
  • Business Registration Certificate
  • Identity cards for borrowers who do not have registered businesses
  • Identity cards for directors of registered companies and registered businesses
  • Bank statements for 6 months, audited accounts for loans above Ksh 5 million
  • Resolution to borrow (for registered companies), details of business location and securities to be provided

Import Duty Finance

Features

Customer Needs/Benefits

The Import Duty Finance Product is a Solution Meant to Facilitate MSME Importers to;

  • Pay for import duty and other related costs promptly
  • Pay for storage charges and demurrages if any
  • Pay for clearing, forwarding and other logistics costs
  • Facilitate transportation of goods from the port to the final destination.
  • Enable the importer to avoid high storage and demurrage charges at the port
  • Enable the importer to avoid auction of goods imported, due to non-payment of duty.

Purpose

Working Capital – To facilitate KRA duty payment, clearing costs or any other logistical costs associated with clearance of imported goods

Target Market.

The product will target the following groups:

Importers of Motor Vehicles and Equipment:

  • For own use (Individual or company),
  • For sale (Motor Vehicle dealers)

Importers of Second-Hand Items For Sale:

  • These are business people who import second-hand goods for resale in Kenya and other neighbouring countries. Business people in Gikomba market will be the target clientele to take up this product.

Importers of Other Goods:

  • E.g. manufacturers (raw materials), construction materials suppliers or other businesses etc.
  • Clearing and Logistics Firms:
  • These are firms that offer clearing and forwarding services as well as logistical solutions

Facility features:

  • Amount Financed – Up to 100% of the value of invoice or quotation raised by third parties (KRA, Clearing agent, Freight Company, etc.).
  • Tenor – Facility will revolve for 12 months upon which the applicant will be reviewed for renewal. One-off applications allowed.
  • Debt Ratio – 50%
  • Limits To Be Funded – Minimum amounts Kshs. 50,000/=

Facility Repayment Tenure:

  • Consumers, Individuals and End Users
  • Equal monthly instalments for a maximum period of 12 months
  • Car Dealers, Clearing Agents and Other Importers Of Goods
  • Bullet payment or monthly instalments (depending on the type of transaction).
  • Maximum Tenor
  • 180 days for bullet transactions or 12 months for monthly payment transactions.

Pricing:

Loan Processing Fee:2.5% of the facility amount
Interest:CBR +4% p.a. currently at 13% p.a
Late Payment Fee:0.25% p.a

Security Type/Colateral

Chattels (Motor Vehicles) up to Kes.2 Million (150% Security Coverage)

  • Landed property for exposures above Kes.2 Million.
  • Cash cover also accepted
  • Customers importing motor vehicles can use the same vehicle as security (Joint registration of vehicle handled by a Bank appointed clearing agent after disbursement of the facility)
  • Collateral Management Agreement (imported goods are pledged as collateral) on case to case basis

Qualification Criteria

  • Customers in Import Business
    • The customer must be in business for more than six months and demonstrate having undertaken an import transaction previously
  • MSME Customers
    • Importing for purposes of reselling, increasing efficiency, productivity or own use
    • No proof for a previous import transaction
    • Customer Applies for facility

Customer Application

  • A Quotation for duty (duty entry form) and other related charges,
  • Copy of Import documents: (Bill of lading/Airway Bill, Commercial Invoice, copy Inspection certificate by KEBS certified agent, IDF, etc.)
  • For motor vehicles – Export Certificate (Japanese Logbook) & Inspection Certificate issued by QISJ or any other inspection company approved by KEBS.
  • All the other requirement as per the MSME lending terms-Strong Financials, Good account conducts, Debt ratio-below 50% & all KYC & supporting documents

Process Flow:

  • Facility appraised at branch/business unit and forwarded to credit analysis for approval
  • Customer executes offer letter and other contractual documents
  • Branch/business unit sends documents to credit administration for limit loading (memo code 6N7)
  • Credit administration approves and forwards limit loading request to credit operations
  • Credit operations unit marks import duty finance limit
  • Trade services to disburse facility and remit payment directly to third parties

Requirements

Customer Application

  • A Quotation for duty (duty entry form) and other related charges,
  • Copy of Import documents: (Bill of lading/Airway Bill, Commercial Invoice, copy Inspection certificate by KEBS certified agent, IDF, etc.)
  • For motor vehicles – Export Certificate (Japanese Logbook) & Inspection Certificate issued by QISJ or any other inspection company approved by KEBS.

Supply Chain Financing

You have suppliers who you haven’t paid. Supply chain financing will help you pay your suppliers.

PARAMETERFEATURES
Product TypeSupply Chain Financing
Maximum Loan100% of invoice value
TenorMinimum Tenor – 7 days maximum Tenor- 180 days
Party For Booking LimitAnchor/supplier
Disbursement Fee / Structuring Fee1%
Loan Repayment PartyAnchor /MSME Customer
Late Payment Fees1.25% of outstanding amount on Anchor
InterestPrevailing bank lending rate is currently at 1.08% per month
Payment Processing FeesKes . 250
Appraisal FeeNil
FeesAll Fees Are Recovered Upfront To The Anchor

Features

Security:

  • For limits up to 2M –Chattels i.e. Motor vehicle discounted at 150%
  • Cash and Land for exposures above 2M

Benefits of the parties involved

Benefits to Anchor

  • The solution allows the Anchor to maintain or extend the payment terms with the Bank
  • Ensuring the Anchor suppliers have access to working capital.
  • Negotiate Better pricing for purchased goods and services and enjoy cash discounts

Benefits to Suppliers

  • Alleviate the cash flow challenges of suppliers by accelerating the conversion of receivables (invoices) into cash.
  • Extend financial access to suppliers who lack collateral – using approved invoices as a form of credibility and surety.
  • Help businesses to grow with enhanced access to finance
  • Reduce days of sales outstanding (debtor’s days).

Requirements

  • 3 years audited accounts
  • Company/ Business profile
  • Banks statements (12 months) if new customer to Co-operative Bank
  • 12 months payments data of the client from anchor
  • Credit application

Diaspora loans & Mortgages

CURRENCIES:
KES Loans 20.5%
FCY Loan- 12 % (GBP, EUR, USD)
 

ProductFinancing modelTerm
Single Residential
Unit
80% of property value
Rental income is part of the repayment
10 years (KES)
10 years (FCY)
Multiple residential80% of property value
Rental income is part of the repayment
10 years (KES)
10 years(FCY)
Plot purchase60% – 70% of property value5 years (KES)
5 years(FCY)
Equity ReleaseMaximum 80% of property value10 years (KES)
10 years(FCY)
Construction80% of the construction costs15 years (KES)
15 years(FCY)

EMPLOYED

1. Full copy of Kenyan Passport/Kenya National Identity Card
2. Copy of Kenyan PIN certificate
3. Valid copy of Residence/Work Permit
4. Copy of recent Utility bill (gas, power).
5. Letter from Employer / Recent contract
6. Fill in and sign loan application forms
7. 6 months latest payslips
8. 6 months latest certified salary bank statements
9. Copy of title for the property
10. Registered specific Power of attorney (optional)
11. Sale agreement/Sale offer

ALL DOCUMENTS MUST BE CERTIFIED BY A RECOGNISED NOTARY PUBLIC OR CERTIFIED BY
AN APPOINTED BANK AGENT

ADDITIONAL DOCUMENTS FOR CONSTRUCTION

  • Approved plans from relevant local authorities (should not be more than two years old).
  • Bill of quantities from a registered quantity surveyor.
  • CVs/profiles of the design team i.e. Architects, Quantity Surveyor, Engineers, and Contractor.
  • Evidence of project equity contribution – i.e. the customer portion of construction costs should be evidenced by cash held, material on site, or amount already spent on the project.

PROCESSING /CLOSING COSTS

  • Commitment fees – 3%
  • Valuation fees – 0.75% of value
  • Insurance – annual fire & life premium
  • Stamp duty (land and house purchase) 2%-4% depending on the location of the property 

Features

  • Buy a residential or commercial property
  • Buy a plot of land
  • Joint mortgage
  • Mortgage top up
  • Mortgage takeover from other financial institutions
  • Equity release

Requirements

  • A full copy of Kenyan passport / Kenya national identity card
  • Copy of Kenyan PIN certificate
  • A valid copy of residence / work permit
  • Copy of recent utility bill (gas, power).
  • Letter from employer stating employment terms
  • Fill in and sign loan application forms
  • 3 months latest payslips
  • 6 months latest certified salary bank statements
  • Draft sale agreement or offer letter
  • Copy of title for the property
  • Evidence of down payment / deposit
  • Registered specific power of attorney (optional)

Cooperative Bank Kenya Customer Care Contacts

Call Center Numbers: 020-2776000, 0703027000
Email: customerservice@co-opbank.co.ke
WhatsApp: +254736690101

You can also contact Cooperative Bank through Facebook page.

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