Investment groups will now be able to get a loan of up to KES 50 million as the Co-operative Bank of Kenya rolls out a new borrowing service dubbed the Club Special Business Loan.
According to the bank, applicants will have to register their chamas with appropriate institutions such as the Ministry of Gender or the Ministry of Social Services.
The service allows a maximum loan amount of KES 50 million. Potential borrowers should have a group account that has been operating for at least 6 months with Co-op or any other banking institution.
The repayment period can run for up to 60 months with charges being drawn from the members’ monthly contributions. The loan also offers 100% financing on project cost. It offers acceptable security for cash, legal charges over land, shares quoted in the NSE, Treasury Bills, Treasury Bonds and residential as well as commercial property. For additional security, all the members are expected to give the bank personal guarantees of their financial stability.