Bank of Africa Kenya Loans, how to apply for the loans and interest rates

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Below is a list of loans offered by Bank of Africa Kenya, how to apply for the loans and interest rates for the loans:

Personal Loans

Salary Advance

Funds advanced to cover emergency and unforeseen expenses and expected to be recovered from the same month’s salary. Also known as pay day loan or a cash advance.

Target Market:

  • Salaried employees whose employers have accounts with BOA.
  • Salary account holders whose employers are pre-approved by the bank.

Benefits:

  • It is a short term unsecured cash advance aimed at meeting a shortfall within the month.
  • Reduced processing period.

Requirements:

  • One must be a confirmed permanent employee with a monthly income.
  • Salary advance not to exceed 50%  of net monthly income.
  • Salary advance to be repaid within one month i.e. on the next pay day (For more senior staff, we could consider three months repayment on a case by case basis).
  • Employer’s confirmation of employment terms and commitment to send the staff’s salary to BOA.
  • Applicant and/or employer to have ran an account with BOA for at least three months.

Documents required:

  • Three months’ payslips
  • Letter from employer
  • Salary Advance application form

Personal loan

These are personal loans ranging from amounts of Ksh 50,000 to Ksh 2,000,000 extended to salaried individuals withh minimum net salaried of Ksh 25,000.

Eligibility:

  • Any salaried individual who has been in continous employment for over 6 months
  • Minimum net qualifying salary of Ksh 25,000
  • Maximum qualifying age is 55 years
  • Processing fee of 3%
  • Clean Credit Reference Bureau report

Benefits:

  • Competitive interest rates
  • Flexible interest installment matched to your income
  • Maximum loan amount Ksh 2,000,000
  • Minimum loan amount Ksh 50,000
  • Quick processing & disbursement within 1 week

Features:

  • The loan duration is a minimum of 12 months to a maximum of 48 months
  • Response time in 48 hours
  • Maximum amount of the loan is Ksh 2,000,000 and a minimum of Ksh 50,000

Requirements:

  • Submission of duly completed Bank of Africa Personal Loan application form
  • Letter of undertaking from employer confirming employment and that salary shall be sent directly to the applicant’s Bank of Africa account
  • Copy of a valid ID
  • Copy of PIN certificate
  • The originals of the preceding 3 months’ payslips
  • For non-BOA customers, certified copies of bank statements for the preceding 6 months

Soma Loan

SOMA LOAN

The School fees loan is a personal short term loan to finance expenditures related to schooling of our customers and their children. The personal loan can be used to finance all levels of education, i.e. Kindergarten, Primary, High School and College (Graduate & Postgraduate) fees.

Target
Any adult individual employee or retiree of the public sector, semi-public and private.
Business people with active transactional accounts. Minimum salary Kshs. 20,000 (Net).

Eligibility Requirements
• Employed or retired with regular retired pay or have a defined stream of income
• A minimum of 3 months with the same employer (for employees)
• Provide last pay slip (for employees)
• Business people to provide statements (12 months)
• Duly filled application form
• Letters of undertaking from employer

Amount
• Minimum Loan amount of Kshs 20,000 and a Maximum of Kshs 500,000*
• Zero Processing Fee
• Insurance cover of 0.3% pa deducted upfront
• Amounts within the DSR, for loans above Kshs 500,000 & for a period of up to 12 months will also be considered
*subject to Debt Service Ratio – 60%

Terms and Duration of Payments
BOA – K will undertake to answer the customers within 48 hours
• Can be sold to any customer (Existing, Non-existing & Business owners)
• Loans will be repaid through monthly constant debits for a period of between 10 – 12 months

Mortgages

Mortgage Finance

BOA aims to offer you a comprehensive mortgage finance solution. This focuses on providing personal and specialized services to meet our clients’ specific needs. We intend to achieve this by enabling our clients buy, build or improve their own properties.

Mortgage Products Offered:

  • Home improvement: this is a facility that is granted to renovate or to change the aspects of an already acquired property. The loan can be a top up on the existing mortgage or a new loan.
  • Property acquisition: This facility is used to purchase a new property. The property being purchased forms the collateral for the loan. It can be used to purchase a home for owner occupation, a commercial property for use by your business and a residential or commercial property for investment purposes. The collateral is the property being purchased.
  • Equity release: a property that is already owned by the borrower is used to acquire a loan facility from the bank. The loan will be used to finance working capital for the business, purchase of another property and other investment activities that will yield income for the borrower.
  • Construction: the bank will finance the borrower towards development of new properties. It can be used for homes for occupation, investment properties be it residential or commercial.

Requirements:

  • A duly completed and signed loan application form.
  • A sale agreement/offer letter.
  • Copy of identity such as identification card or passport and registration documents for a business.
  • Proof of income i.e. payslips.
  • Bank statements for the last six months.
  • Copy of the title for the property offered as collateral.
  • A valuation report from a valuer in the bank’s panel (can also be availed after approval).
  • Letter of introduction and undertaking from employer for employed persons.
  • Open a Current account.

Benefits:

  • Own occupation.
  • Tax benefit through mortgage relief.
  • Financial advice on mortgage products.
  • Personalized customer service.
  • Flexible terms of repayment.
  • Savings on rent.
  • Capital gains from property appreciation.

SME Financing

Agribusiness Loan

This is a short to Medium term credit facility to help farmers in purchase of farm inputs such as seeds, fertilizers and chemicals, pay for lease of additional agricultural land, buy livestock, meet their harvesting and marketing costs and also finance other social development needs.

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, bullet payment or as per the customer cash flows.
  • Loan advanced both in Kenya shilling and foreign currency
  • Maximum 3 years for machinery, equipment and any farm asset financing.
  • Maximum of 1 year or crop production period/cycle whichever is shorter for farm inputs financing

Requirements

  • Detailed Analysis of the agricultural project including expected revenues and all the cost items e.g. seeds, animal purchases, herbicides, pesticides, harvesting and labour.
  • A comparative analysis of the neighborhood to establish the kind of farming carried out, expected harvest and suitability of the farming activity the customer is carrying out
  • 12 months bank statement
  • Provide documentary evidence of ownership of farm to be used for the production or a valid lease agreement covering at least one future production cycles
  • 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
  • Land ownership/lease agreements documents
  • 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

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

Business/Corporate Loan

Working Capital:

This loan facility is suitable for your working capital and shorter financing requirements of your business.
This type of loan is repaid in installments of between six and thirty six months.

Invoice Discounting:

Security can be a limiting factor when you want to access credit quickly. Corporate bodies and SME find it difficult to arrange for security especially when into start up ventures or when all available security has already been mortgaged.
In recognition of this BOA gives you the option to discount accepted invoices. BOA will advance you funds against these invoices allowing you to continue with your business as the bank waits for settlement of the invoice on your behalf.
Whether you are a supplier who has issued an invoice to a large company or a large company invoicing a number of distributors, Bank of Africa offers a flexible solution that eases your cash flow.

Main Features:

  • BOA Non-recourse invoice discounting product program that will handle open account transactions, for suppliers to large local and multinational corporate companies.
  • Discounting is also possible for large corporate companies that sell their products through a network of distributors.
  • Non-recourse invoice discounting is one trade solution, with Bank of Africa discounting commercial invoices for buyers and suppliers on a without recourse basis.

Key Benefits:

  • Access to financing without security.
  • Ease of processing credit with a pre-arranged credit.
  • Reduces corporates level of accounts recievable making you able to present a healthier balance sheet.
  • Facilitates your sales on an open account basis.
  • Saves you the hustle of bills of exchange and saves you stamp duty payable on such instruments.

Overdrafts:

Overdraft facilities are available on Bank of Africa business current accounts, giving you access to additional funds (up to a specified limit) to help you manage your day to day cash flow needs. They run for upto 12 months and are renewable.

Features and benefits

  • An overdraft facility is the ideal way to cover temporary cash flow requirements and short term working capital needs.
  • Cash is immediately available.
  • Interest is only charged on the used portion of your overdraft.

Contract Financing:

This is a credit facility to a supplier to enable them meet a supply order that they have from a known buyer. The facilities include advances, guarantees and letters of credit, as the situation may demand. The bank will deal with suppliers who meet certain performance criteria and buyers who meet accepted risk profile.

Benefits:

  • Enables suppliers fulfil their orders without provision of security

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