Vuka loan is available to youthwho wish to start or expand businesses. Applicants may use the loan for financing working capital, for business startup and expansion.
Eligibility:
- Youth intending to start commercial ventures with a viable business plan
- Youth with existing commercial ventures for expansion purposes
- Partnerships and sole proprietorships who have been in operation for at least 6 months
- Limited companies must have been in operation for at least 1 year
Loan amounts and Repayment:
Maximum Amount is Kshs. 5,000,000
Repayment Period:
- Kshs.. 100,000: Maximum 1 year
- Kshs.. 100,001 to 300,000: Maximum 2 years
- Kshs.. 300,001 to 1,000,000: Maximum 3 years
- Kshs.. 1,000,001 to 5,000,000: Maximum 5 years
Interest: An interest of 8% p.a. will be charged on the borrowed amount
Collateral/Security:
- Loans secured by chattels will require two guarantors
- Amounts up to Kshs.100,000 will be secured using flexible security (chattels, stock, livestock, business assets, guarantees)
- Repeat/Top-up loans of up to Kshs. 300,000 will be secured using Chattels, stock, livestock, business assets (after successful repayment)
- Conventional securities will be required for:
- First-time loans above Kshs. 100,000
- Top-up/repeat loans above Kshs.300,000