With Faulu microfinance bank loan Kenya, you can realize your dreams through getting empowered. Accessing quick and affordable loans by starting up that business you have always wished for. Faulu is a loan scheme program that targets the poor, it has also demonstrated a deep record of enviable growth in its assets and loan records.
About Faulu Microfinance bank Kenya
The origins of Faulu Microfinance Bank (Faulu) according to record, is traced back to 1991 when Food for the Hungry International (a Christian relief organization) organized a loan scheme, under the name Faulu, to help empower and give out loans to the people.
Faulu Kenya as it is popularly called has helped numerous citizens get short-term loans. In addition, it has also opened opportunities for funds for small businesses and farmers.
As a microfinance bank, it offers different types of loan to Kenyans and we will take you through the different types of loan Faulu Kenya offers.
Types of loans offered by faulu, their interest rates, minimum amount and how to apply
There are three main types of loans offered by Faulu, they are:
1. Retail Consumer loans
2. Micro loans
3. SME or business loans.
Retail Consumer Loans
These are loans offered to retailers and small businesses. They include:
A. Check-off Loans:
These are loans that solve different purposes or a Check–Off Loans for salaried employees, Civil servants, Forces, County Governments, government and corporates officers. It is binded by an MOU.
Minimum Loan To Collect
Minimum loan one can access is Kes.10,000
Maximum Loan To Collect
Maximum loan one can apply for is Kes 3,000,000
Loan Term Repayment
Loan term of up to 84 Months
B. Tamba Imara Check-off Loan
This category of loan is offered to salaried individuals working with Institutions where Faulu doesn’t have an MOU e.g. NGOs and International Agencies etc.
C. Faulu Unsecured Salary Advance
It is Short term emergency and immediate loan offered to customers with Faulu Salary Account
Check out unsecured business loans in kenya
Maximum Loan To Collect
A maximum of 4 times the net salary, which is approximately a maximum of ksh. 100,000. A monthly written Standing Order from Faulu Salary Account to Loan Account.
Micro Loans
They are loans given to small businesses and group of individuals to finance their business. The categories of loans under this are:
A. Faulu Micro Loan
It is a multipurpose loan that funds small businesses and entrepreneurs with enough Working or LPO capital and financing.
Minimum Loan To Collect
Minimum loan one can access is Ksh. 1,000,000
Maximum Loan To Collect
Maximum loan one can apply for is Kes 3,000,000
Loan Term Repayment
Loan term of up to 18-36 months
Interest Rate
The interest rate is based on refinancing which is available on appraisal. In other words, existing loan is 75% paid from the 2nd Loan cycle.
B. Group Business Loans
It is a funding solution geared towards enhancing and helping groups grow and improve their businesses.
Minimum Loan To Collect
Minimum loan one can access is Ksh. 5,000
Maximum Loan To Collect
Maximum loan one can apply for is ksh. 500,000
Loan Term Repayment
Loan term of up to 3 -24 Months
Interest Rate
The interest rate is based on refinancing which is available on appraisal. In other words, existing loan is 75% paid from the 2nd Loan cycle.
C. Faulu Chama Loan
It is a loan given to welfare groups and investment clubs in the formal or informal setting that operate a Faulu Chama account
Features And Benefits
- Favorable and affordable
- The repayment period is flexible
- MOU and LPO funds for groups, business, opportunities and contacts.
D. Pesa Chap Chap
It is a short term emergency loan. It is a loan given out based on urgency and immediate needs.
Minimum Loan To Collect
Minimum loan one can access is Ksh. 300
Maximum Loan To Collect
Maximum loan one can apply for is Max ksh.10,000
Loan Term Repayment
Loan term repayment of up to 10 days
SME/Business Loan
This is a type of loan given to businesses or small and medium enterprises. They are:
A. Asset Finance Loans
These category of loan target individuals, businesses and Chama groups.
Maximum
Up to kes.100,000,000.
Interest Rate:
Interest rate is as low as 9.5 %
B. Biashara Loans
This type of loan requires groups made up of 15 – 30 members. The loan is meant to support women. Women with small and medium scale businesses.
Maximum
Minimum of 10,000 Kenya shillings.
Interest Rate
They have interest rates of 9.5 %.
Repayment Period
Cool repayment duration of 72 months.
C. Insurance Premium Financing (IPF)
They design this loan towards supporting individuals and SMEs to pay Insurance Premium with reputable Insurance companies.
Maximum
Maximum of KES 3,000 – 500,000
Repayment Period
Up to 10 Months repayment period
D. Faulu Landlord Loans
They make this loan accessible to landlords with property in Kenyan cities to help finance, develop and expand their property and incomes.
E. Ushirika Loans
It is a flexible loan given to churches and para churches for their income generating projects.
Minimum
Minimum amount to access is ksh.50,000
Maximum
Maximum amount to access is Ksh. 20M
Repayment Period
Up to 2 months repayment period.
Click here to read about business loans in Kenya
How to apply for Faulu Kenya Loan
The following are simple steps to getting a loan from Faulu microfinance bank kenya:
- Be more than 18years.
- Identify the kind or type of loan you want to apply for. Faulu Microfinance bank will not give you loan for frivolities.
- Open an account with Faulu Kenya.
- Service the account and keep your M-pesa history ready if need be.
- Visit the bank and ask for the required documents.
- Get your documents ready
- Present a document or a collateral if need be.
- Sign the necessary documents
- Get your loan
How do I withdraw from Faulu kenya account/bank
Withdrawing from your Faulu kenya bank or account, take note of the following steps:
- Enter the 6-digit ATM Authorization Code received via SMS on the ATM keyboard.
- Input your Safaricom mobile number accurately
- Input the amount you need, click continue to proceed.
- Get your cash instantly from the ATM and a receipt.
How To Repay Faulu Kenya Loan
Loan Repayment
Loan repayment differ putting in consideration the different types of loans offered by Faulu kenya.
You can collect the loan automatically by writing a monthly written or automated Standing Order from Faulu account to your loan account.
About Faulu Kenya loans
Visit the website at https://www.faulukenya.com/ to learn more.
Find them on Ngong lane, off Ngong Road.
You can call them on +254 711 074 000 or +254 711 074 074
You can also Email them@ info@faulukenya.com
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Conclusion
Faulu Kenya is a microfinance bank with a difference. They offer different types of loan which is easily accessible. You can easily access Agriculture and emergency loan to boost your business and fund your projects. NGOs are not left out, they can access the loan with a flexible interest rate and longer repayment period.