Date Posted: 5/9/2013 12:08:49 PM
Posted By: Ombaba Membership Level: Gold Total Points: 1110
For decades, a majority of business people in Kenya have shied away from taking up loans from banks due to the strict requirements that banks previously gave in order to access a loan. However, in the last few years banks have liberalized their services so much such that almost anyone with a running business can be able to get a loan from the bank.So how exactly does one go about getting a business loan from the bank.The mainstream banks in Kenya such as the co-operative bank, Kenya commercial bank, and equity bank have somehow similar basic requirements for getting a small business loan to boost your business.One of the main requirements is that one must have a bank account which should have been running for at least six months.Secondly one must have a business that should have run for at least one year. This requirement is necessary to show that an individual has the ability to repay the loan. Note that most banks will shy away from giving a business that is just starting a loan. Most banks have liberalized their requirements for securing a loan for micro and small enterprises loans. Unlike before where banks required things like title deeds and or log books, today most banks accept business stock, household items, and personal guarantees as enough to secure a loan.The loan amount that can be accessible varies from bank to bank but ranges from a minimum of five thousand to a maximum of two million shillings. Among other documentation required to access the micro credit loans is your ID card copy, copy of KRA pin and business permit or certificate of registration of business.
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