Kingdom Bank Loans, How to apply, requirements and interest rates

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Kingdom Bank is one of the banks in Kenya that offer cheap loans. They offer unsecured loans, personal loans, business loans ,chama loans and many other loans. Below we discuss each loan offered, how to apply, documents required for application and interest rates.

List of loans offered by Kingdom Bank

Faidi Dada Loan

Features of the Faidi Dada Loan

  • Affordable & competitive interest rates.
  • Loan limit up to Ksh. 40 Million
  • .Unsecured for amounts up to Ksh. 3 Million.
  • Flexible security for secured loans
  • Available for both existing and new to bank customers
  • Flexible repayment period aligned to business cycles, purpose, business type and cashflows.

Benefits

  • Quick Turn Around Time, Loan processing within 24 hours
  • Affordable & competitive interest rates and application fees.
  • Dedicated Relationship managers.
  • Frequent MSME clinics/ training sessions.
  • Loan top ups available of up to 100% graduation.
  • Negotiated medical cover for both outpatient and inpatient; the medical cover amount to be added to the loan amount.

Supplementary/ Emergency Loan

  • 6-months bank statement
  • The Business should have been in existence at least 1 year.
  • Copy of National ID/passport.
  • KRA Pin.
  • Business permit.
  • Any other documentation that may be required by the bank.

Requirements

  • Eligibility to qualify for supplementary/emergency loan if having Faidi Dada account.
  • Convenient repayment period of up to12 months.
  • Turn Around Time of 12 hours.
  • No guarantor required.

Salary check-off Loan

FEATURES:

  • Loan amounts from Kes. 20,000 – Kes 4,000,000
  • Repayment period up to 96 months
  • Interest rate at 13% on reducing balance

REQUIREMENTS:

  • 3 latest payslips
  • Copy of National ID Card
  • Copy of KRA PIN

Unsecured Business Loan

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

Daraja Loan

Daraja loan is a loan targeting established businesses which aim to expand their businesses. You can use your title deed, logbook or household items as your collateral.

Qualification criteria

Businesses must have been in operation for not less than one year. The business to be financed must have a regular cash flow; exceptions can be made for Agricultural related activities, schools, supplies, rental incomes depending on the business cycle. Customer and must have banked with us for at least Three (3) months period with satisfactory account conduct.

Account Features

Minimum Kes. 50,000 Maximum Kes. 3,000,000 Interest rate 18%.

Security

Title deeds, Motor vehicle logbooks, Household items or business assets, Business stock

Chama Investment Loan

This product targets any collection of individuals in form of a Chama, whose objective is the pooling together of capital or other resources with the aim of using the collated resources for investment purposes.

REQUIREMENTS:

  • Copy of Certificate of Incorporation
  • Copy of CR 12 (validity period 90 days)
  • Copy of company KRA PIN
  • Copies of Directors’ ID and PIN
  • Copies of Memorandum and Articles of Association for limited company
  • Copy of a partnership deed in case of a Partnership
  • Directors’/proprietors’ resolution to borrow in case of limited company
  • Duly completed and signed Application Form under company seal
  • Duly executed Directors Personal guarantees
  • Resolution to borrow signed by share holders
  • Cash flow projections if applicable
  • Bank statements for at least the last 6 months, if banking elsewhere
  • Copy of the letter(s) of offer from other institutions, if servicing other facilities
  • Copy of the valuation report, if available
  • Copy of the identification document(s) for all parties in the borrowing
  • Copies of the security document(s) e.g. title deed, logbook and NSE share statement e.t.c.
  • Bills of quantities for construction indicating value of works done and value of remaining works
  • A list of all the shareholders/members and their contact details
  • Identification documents for all the shareholders

FEATURES:

  • Minimum loan amount Kes. 300,000
  • Maximum loan amount up to Kes. 40 million
  • Maximum repayment period of up to 120 months
  • Financing 100% of the project cost

ADDITIONAL DOCUMENTATION:

  • Sale agreement for Property purchase
  • Proforma invoice for asset acquisition
  • BQs, Approved Architectural and Structural drawings, County approvals and permits for construction for construction projects.

Micro Group Loan

This is a loan facility for micro and small enterprises that have registered with a group,
looking to meet working capital for their business. The loan is guaranteed by other
members of the group.

FEATURES:

  • Maximum repayment period of 12 months
  • Loan facility of up to Kes 1,000,000.00
  • Minimum loan amount Kes 10,000.00

GROUP QUALIFICATION:

  • Be located within the stipulated business unit’s area of operation
  • Have members who are currently running small or micro-enterprises
  • Be registered appropriately with the relevant Government authorities
  • Open a bank account for depositing members’ savings with Kingdom Bank
  • Demonstrate a capacity to administer loan funds and be united
  • In case of an existing group, the group must have operated a merry-go-round program for at least six months
  • Members’ businesses must have been in existence for at least six months
  • Members are eligible for loans after an initial period of eight weeks of training and uninterrupted savings. RMs/ROs to attend all weekly meetings to prepare members by familiarizing them with lending procedures and bank requirements
  • The disbursement to be done on a ratio of 2:2:1 based on group membership. The second application to be done after a month subject to satisfactory schedule payments of previous advanced loans
  • Loans to be given at most 5 times of each members savings
  • Comprise a minimum membership 5 and a maximum of 30 members
  • The group meetings to be held weekly. Members must be willing to make the weekly mandatory deposit amount

LPO Financing

A loan product designed for contractors and vendors of reputable organizations

to enable them to execute work and local purchase orders from their respective employers.

Loan Amount:Up to 75% of the LPO value.

Loan term:Maximum 120 days.

Criteria:

     Qualified and more than one year experience

     Has capacity to deliver the contract

    Past track record of the supplier or vendor.

    The LPO should not be more than 30 days from the date of issue.

Fees: Processing fee at 3% of the loan amount.

Interest Rate:1.17% per month.

Security: Cash cover, Land & buildings, and/or Motor vehicles; are acceptable collateral.

Performance Guarantee

Performance Guarantees are commonly used in the construction and development of real property, where an owner or investor may require the developer to assure that contractors or project managers procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event (such as insolvency of the contractor).

In other cases, a performance bond may be requested to be issued in other large contracts besides civil construction projects. Another example of this use is in commodity contracts where the seller is asked to provide a Bond to reassure the buyer that if the commodity being sold is not in fact delivered (for whatever reason) the buyer will at least receive compensation for his lost costs.

Tenure:
12 months renewable

Security:

  • More than 3 years’ experience – 100% tangible security
  • Less than 3 years’ experience – 20% cash cover, 80% conventional security
  • Insurance cover by AGF, ATI, USAID, GUARANTCO

Eligibility Requirements for a Performance Guarantee at Kingdom Bank

  • Award letter
  • Must be a Kingdom Bank account holder
  • The counter-party must be within the bank approved entity
  • Copy of contract
  • Copy of performance bond if not issued by the bank

Kingdom Bank Customer Care Contacts

If you wish to contact Kingdom Bank, use the following details:

Kingdom Bank Towers,
Argwings Kodhek Road, Kilimani. 

P. O. Box 22741- 00400 Nairobi, Kenya 

Landline: 020-221 0339
Mobile: 0709 881 000, 0709 881 300 

Email: info@kingdombankltd.co.ke

Kingdom Bank Loan Interest Rate

The loan interest rate range between 12% and 18% per year. Long term loans come with lower interest rate than short term loans.

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