Vuka Loan

Support youth in existing businesses

About The Loan

Vuka loan is advanced to youth who have existing businesses and Are able to provide security. The objective of vuka loan is to Provide friendly large scale financing for business expansion Applicants may be individuals, partnerships or limited companies. Vuka loan finances business expansions only, not startups. The Applicant may use the loan for working capital or to purchase Income generating assets.

LOAN DETAILS

Loan Amount:

Minimum of: Kshs. 100, 000 Maximum of: Kshs. 2,000,000


INTEREST ON LOAN
  • YEDF will charge an interest rate of 8% Flat per annum
  • A loan application fee of 1% of the loan amount will be charged upon approval of a loan facility. This will be netted off the loan amount at disbursement. The amount will take care of the pre-disbursement processes, including training
Repayment Periods
Upto Kshs. 100,000: Maximum of 2 years
Upto Kshs. 300,000: Maximum of 3 years
Upto Kshs. 500,000: Maximum of 4 years
Upto Kshs. 1 million: Maximum of 5 years
Above Kshs. 1 million: Maximum of 6 years
Requirements:
  • Applicant must between 18 to 34 years old
  • In case of partnerships, 70% of the partners should be 18 to 34 years old
  • Fill an application form which is available at any Youth Fund office.
  • Attach identification documents of the applicant(s) i.e
    • For individuals: ID copy/passport, two recent passport size photos and PIN certificate
    • For Limited Companies: Certificate of incorporation, Memorandum & Articles of Association, Company PIN certificate and 2 Passport size photos for all the directors.
    • For Partnerships: Partnership Deed, 2 Passport size photo for each partner, and Business PIN certificate
  • Resolution to borrower by the board (for Companies)/Partners (for partnerships)
  • Current (recent) Six months bank statement
  • Business registration/License/permit
  • Borrower will provide security for the loan
  • Copy of Title/Relevant proposed security document
  • The borrower will bear all costs such as insurance, valuation, stamp duty, registration of charge/chattel and legal fees

Security

All loans will be secured, as follows:


  • Loans of Kshs.100,000/= will be secured by flexible security such as chattels, stock, business assets
  • All loans above Kshs. 100,000/= will be fully secured by conventional security such as:
    • Financed Capital Assets
    • Car logbooks
    • Landed property
    • Treasury bills and bonds
    • Undeveloped property
The following security discounting margins will be applicable:
  • Chattels:
    • Business and household goods will be discounted at 50%.
    • Where stock is used as security it will be discounted at 20%
  • Car Logbooks
    • Newly registered Vehicles (0-5 yrs) will be discounted at 80%
    • Used Vehicles (up to 8 years) will be discounted at 70%.
  • Lien on treasury bonds/bills: 80%
  • Landed Property:
    • City Urban (Mombasa/Nairobi and its environs):90% developed, 80% undeveloped.
    • Urban Town( Nakuru, Eldoret, Kisumu, Nyeri, Thika, Malindi):80% developed, 70% undeveloped.
    • Rural Urban:50%

Mode of Loan Disbursement

The Loan proceeds will be transferred directly to the clients account through EFT/RTGS. The loan will be repayable on a monthly basis through cash deposit into the Fund`s account as advised in writing.


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