SBM Bank Kenya loans, interest rate, how to apply for the loans

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If you want a loan in Kenya, SBM is the best bank to get the loan from. They give loans to individuals, businesses, corporate and people in the diaspora. Below is a list of loans offered by the bank, how to apply for the loans and interest rate charged:

LOANS FOR INDIVIDUALS

Auto Loan

Eligibility / Documents Required

  • Duly filled application form
  • Not negatively listed on CRB
  • Minimum net pay of Kes. 15,000
  • 3 months latest pay slip
  • Consistent income for the past 12 months
  • Copy of ID and PIN
  • Certified copies of last 12 months’ bank statement from other banks
  • Pro-forma invoice from the dealer

Rates & Fees

  • Interest is pegged on the Bank’s base rate + 3.1%p.a. for new units, and +4% for used units, all calculated on reducing balance
  • Processing fees of 1.5 % for new units and 2% for used units
  • Credit Life with retrenchment cover rider.

Mortgage

SBM Banks offers mortgage loans to individuals at a rate of 9%-15% per year. Repayment period is up to 20 years.

Pay Day Advance

It will help you solve emergency financial issues before your salary is credited into your account. To get the loan, below are the conditions to be met:

Eligibility / Documents Required

  • Must have been an SBM account holder for the past 1 month
  • Confirmed permanent/contract employee with a monthly income and is not on the probationary period
  • Should have received at least the last 1 salary through SBM Bank
  • No unauthorized overdrawn positions
  • No unpaid items
  • Nil arrears in existing or related accounts
  • Amount sought should not affect or impact ability to meet loanrepayment obligations.

Rates & Fees

  • Maximum facilitated – 50% of monthly net pay
  • Processing fees – 10% collected upfront with a minimum or floor rate of Kes.500
  • Zero interest rate charged

SBM Overdraft

Eligibility / Documents Required

  • Account should not have unauthorized overdrawn positions or unpaid items over the last six months
  • Account holder should have a good CRB rating
  • Facility should not fall under the banks list of prohibited business
  • Available to both existing and new SBM account holders

Rates & Fees

  • Interest rate : +4% for Kenya Shillings; US $ based on the 3 month LIBOR.
  • Processing Fees – 3%

Personal Unsecured Loan

Eligibility / Documents Required

  • Duly filled and signed application form
  • Must be a salaried permanent employee for over 6 months
  • Customer’s statements evidencing salary for the last 6 months.
  • Applicant should have no unauthorized overdrawn positions or unpaid items

LOANS FOR BUSINESSES

Unsecured MSME Loan

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

Rates & Fees

  • Trade credit insurance to cover the portfolio and/or individual borrowers up to 50%

Term Loans

Eligibility / Documents Required

  • Maximum qualifiable amount is 25% of total annual turnovers
  • Account should not have unauthorized overdrawn positions or unpaid items over the last six months
  • Maximum tenure is 12 months
  • Not negatively listed on CRB
  • Facility should not fall under the banks list of prohibited business
  • Duly filled and signed application form
  • Available to both existing customers and new to the bank

Rates & Fees

  • Interest rate pricing for Kenya Shilling denominated facilities is linked to the bank base rate+ 4% margin, FCY denominated facilities are linked to the 3 month LIBOR.
  • Processing Fees of 3%

Structured Term loans

Eligibility / Documents Required

  • Available to both existing customers and New to bank.
  • 12 months bank statements
  • Projected cash flows
  • Audited accounts for the last 3 years
  • Duly filled and signed application form.
  • Appropriate documentation e.g. county approvals, engineers certificates, BQs etc. to be provided

SBM Overdraft

Eligibility / Documents Required

  • Account should not have unauthorized overdrawn positions or unpaid items over the last six months
  • Account holder should have a good CRB rating
  • Facility should not fall under the banks list of prohibited business
  • Available to both existing and new SBM account holders

Rates & Fees

  • Interest rate – +4% for Kenya Shillings; US $ based on the 3 month LIBOR.
  • Processing Fees – 3%

LOANS FOR CORPORATE

SBM Overdraft

Eligibility / Documents Required

  • Account should not have unauthorized overdrawn or unpaid credit over the last six months
  • Account holder should have a good CRB rating
  • Facility should not fall under the banks list of prohibited business
  • Available to both existing and new SBM account holders

Rates & Fees

  • Interest rate : +4% for Kenya Shillings; US $ based on the 3 month LIBOR.
  • Processing fees – 3%

Asset Finance

Eligibility / Documents Required

  • Applicant to have a good credit rating with CRB
  • Sales agreement or Proforma invoice
  • Joint registration of the asset (car)
  • Valuation report for used vehicle
  • Bank statement for the preceding 6 months (12 months for unemployed clients)
  • Pay slips for the preceding 3 months

Rates & Fees

  • Interest rate – Bank base rate + 4%p.a.
  • Base rate – 13% calculated on reducing balance.
  • Processing fees – 3%
  • Credit Life with retrenchment cover rider.

Insurance Premium Financing

Eligibility / Documents Required

  • Duly executed IPF forms signed and stamped by the customer and underwriter.
  • Applicant must demonstrate ability to repay loan
  • Should have a good credit score on CRB
  • A deposit of funds equivalent to the first instalment is required 

Rates & Fees

  • Interest rate – Bank base rate + 4%p.a.

Term Loans

Eligibility / Documents Required

  • Loan is available to both SBM account holders and non-account holders.
  • Applicant should have good credit ratings on CRB
  • Facility should not fall under the bank’s list of prohibited businesses
  • Account should not have unauthorized overdrawn or unpaid credit over the last six months 

Rates & Fees

  • Interest rate : +4% for Kenya Shillings; US $ based on the 3 month LIBOR.
  • Processing fees – 3%

Structured Term Loans

Eligibility / Documents Required

  • Applicant can be either an SBM account holder or non-account holder
  • Bank statements reflecting the preceding 12 months
  • Show proof of projected cash flow
  • Show audited accounts for the last 3 years
  • Feasibility study report to be provided where applicable
  • Applicant should have good credit ratings on CRB
  • Facility should not fall under the bank’s list of prohibited businesses
  • Account should not have unauthorized overdrawn or unpaid credit over the last six months
  • Show audited accounts for the last 3 years

Rates & Fees

  • Interest rate : +4% for Kenya Shillings; US $ based on the 3 month LIBOR.
  • Processing fees – 3%

Crop Loan

Eligibility / Documents Required

  • Applicant can be either an existing or new SBM account holder
  • Bank statements reflecting the preceding 12 months
  • Applicant should have good credit ratings on CRB
  • Facility should not fall under the bank’s list of prohibited businesses
  • Account should not have unauthorized overdrawn or unpaid credit over the last six months

Rates & Fees

  • Processing fee – 3%
  • Credit Life on principal – 0.35%

LOANS FOR DIASPORA

Construction Loan

If you want to construct o your plot in Kenya, get a construction loan from SBM bank. The interest rate per year is between 9% and 12%.The loans is approved after providing the required documents.

Eligibility / Documents Required

  • Original and copy of ID / passport
  • Copy of KRA PIN
  • Employment contract for the employed individual
  • Copies of business licenses/permit for the self-employed and an IRA/tax compliance certificate
  • Certified bank statements
  • Certified pay slips 
  • Certified and confirmed bank loan statements if there are any running loans in Kenya
  • CRB report on the applicant
  • Copy of the sales agreement
  • Valuation report of the asset
  • Copy of the title deed
  • Bill of quantities
  • Architectural certificate
  • Deed of rental assignment
  • County Government approval
  • NEMA approvals
  • Contractor’s profile, insurance current license
  • Contractor insurance
  • NCA permit
  • Tax returns

Mortgage

When living abroad, you may want to own a home in Kenya. The mortgage facility by SBM bank will help you fulfill the dreams of owning a home. Below are the terms of the loan:

Eligibility / Documents Required

  • Original and copy of ID / passport
  • Copy of KRA PIN
  • Employment contract for the employed individual
  • Copies of business licenses/permit for the self-employed and an IRA/tax compliance certificate
  • Certified bank statements
  • Certified pay slips
  • Certified and confirmed bank loan statements if there are any running loans in Kenya
  • CRB report on the applicant
  • Copy of the sales agreement
  • Valuation report of the asset
  • Copy of the title deed
  • Tax returns

Personal Secured Loan

Eligibility / Documents Required

  • Original and copy of ID / passport
  • Copy of original KRA PIN certificate
  • Employment contract for the employed individual
  • Copies of business licenses/permit for the self-employed and an IRA/tax compliance certificate
  • Certified bank statements
  • Certified pay slips
  • CRB report on the applicant
  • Copy of the log book
  • Valuation report of the asset
  • Copy of the title deed
  • Copy of the sales agreement
  • Copies of import documents (if not registered)
  • Copy of the pro-forma invoice or dealer’s quotation
  • Tax Returns
  • Statements and Pay slips should be certified

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