Faulu Kenya microfinance bank loans–Explained!

Faulu Kenya microfinance bank loans–Explained!

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 loans to Kenyans and we will take you through the different types of loans 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. Microloans

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 Check-Off Loans for salaried employees, Civil servants, Forces, County Governments, government, and corporate officers. It is bound by an MOU.

Minimum Loan To Collect

The minimum loan one can access is Kes.10,000 

Maximum Loan To Collect

The 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

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

The minimum loan one can access is Ksh. 1,000,000 

Maximum Loan To Collect

The 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

The minimum loan one can access is Ksh. 5,000 

Maximum Loan To Collect

The 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

  1. Favorable and affordable 
  2. The repayment period is flexible 
  3. MOU and LPO funds for groups, businesses, 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

The minimum loan one can access is Ksh. 300

Maximum Loan To Collect

The 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 categories of loans target individuals, businesses, and Chama groups. 

Maximum

Up to kes.100,000,000. 

Interest Rate: 

The 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

The 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

The minimum amount to access is ksh.50,000

Maximum

The maximum amount to access is Ksh. 20M

Repayment Period

Up to 2 months repayment period.

How to apply for Faulu Kenya Loan

The following are simple steps to getting a loan from Faulu microfinance bank Kenya:

  1. Be more than 18years.
  2. Identify the kind or type of loan you want to apply for. Faulu Microfinance bank will not give you loans for frivolities.
  3. Open an account with Faulu Kenya.
  4. Service the account and keep your M-pesa history ready if need be.
  5. Visit the bank and ask for the required documents. 
  6. Get your documents ready
  7. Present a document or collateral if need be.
  8. Sign the necessary documents 
  9. 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:

  1. Enter the 6-digit ATM Authorization Code received via SMS on the ATM keyboard. 
  2. Input your Safaricom mobile number accurately 
  3. Input the amount you need, click continue to proceed.
  4. Get your cash instantly from the ATM and a receipt.

How to Repay Faulu Kenya Loan

Loan Repayment

Loan repayment differs putting into 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

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.

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