ASSET FINANCE LOAN

April 27, 2023

About The Loan

 

Asset Finance loan is available to youth entrepreneurs who wish to purchase business assets. The Fund will finance up to 75% value of the equipment/asset being purchased, excluding landed property. The loan is ideal for existing businesses seeking expansion and can be used to acquire new business machines, tuktuks, motorcycles, and motor vehicles that are not older than 8 years from the date of manufacture.

Loan Amounts and Repayment:

Maximum Amount: Kshs. 5 million

Maximum Loan Term: 4 years

Repayment Periods:

  • New vehicles: Up to 4 years
  • Used vehicles: Up to 3 years
  • Motorcycles: Up to 1 year
  • Tuk tuks: Up to 1.5 years
  • PSVs: Up to 3 years
  • Other assets: Up to 4 years (depending on asset nature)

Conditions for PSV Matatu Financing:

  • Borrower must identify a reputable registered Sacco (at least 1 year old)
  • Provide Sacco registration documents and clearance letter/certificate

Collateral/Security:

  • The financed asset will serve as the primary security
  • The Asset will be co-owned by the YEDF and client until loan repayment
  • Additional conventional collateral will be required for assets other than motor vehicles, tuktuks, and motorcycles