Constituency Based Loans

Support young people start income generating activities at the constituency level

About The Loan

The Youth Enterprise Development Fund provides the following loans to groups and individuals at the constituency level:

A. GROUP LOANS

1. Rausha


Loans are payable within 4 months (quarterly). Appraisal of this loan targets start up group business only.


Loan Details
Loan amount: Maximum Kshs. 50,000
Management Fee 5% (this loan is interest free)
Repayment period: 12 months
Grace period: 3 months
Requirements:
  • Fill an application form which is available at any Youth Fund Office
  • Valid Registration Certificate and certified membership list
  • Copies of identity cards for group members
  • Group minutes authorizing the loan application
  • The loan amount will be recommended based on the business proposal as seen in the application form, and appraisal of group’s ability to manage the funds

2. Inua


This loan is for Business expansion purposes only.


Loan Details
1 st loan: Maximum Kshs. 100,000 Payable in 12 months
2 nd Loan: Maximum Kshs. 200,000 Payable in 18 months
3 rd Loan: Maximum Kshs. 500, 000 Payable in 24 months
Management fee: 5%. This loan is interest free
Requirements:
  • Group must have borrowed and repaid Rausha loan. If not then the group must:
    • Have an existing and well running business enterprise(s) run by the group.
    •  Have a good credit history with Youth Fund or other lending institutions\organizations.
  • Fill an application form which is available at any Youth Fund office
  • Valid Registration certificate and membership list
  • Copies of identity cards of group members
  • Group minutes authorizing the loan application
  • A copy of a current business license or proof of existence as may be agreed
  • A copy of a 3 months bank statement
  • Recent business records.

Security
  • Chattels (pledge of personal and business assets)
  • Stocks
  • Charge over or simple deposit of ownership documents of assets directly financed by YEDF e.g logbooks.

However, this will depend on a type of business activity that the group engages in.


3. Special


This is a new loan targeting special business projects across various economic sectors. These include:


  • Agricultural production-horticulture
  • Livestock trading or fattening
  • Other seasonal/periodical businesses where the clients cannot be able to repay their loans on a monthly basis.

Amounts: start up loan will be Kshs. 50,000 Maximum. Expansion/continuing business loans for new and continuing groups will be as follows:

Loan Details
1 st loan: Maximum Kshs. 100,000 Payable in 12 months
2 nd Loan: Maximum Kshs. 200,000 Payable in 18 months
3 rd Loan: Maximum Kshs. 500, 000 Payable in 24 months
Management fee: 5%. This loan is interest free
Requirements:
  • Fill an application form which is available at any Youth Fund office
  • Valid Registration certificate
  • Copies of identity cards of group members
  • Group minutes authorizing the loan application
  • Copies of supply contracts (where applicable)
  • Special feature: longer grace periods and periodical (quarterly, half year or bullet) repayment will be applied depending on project maturation.
  • Horticulture project loans will be based on the nature of the business and the business needs of the borrowers.

B. INDIVIDUAL LOANS

1. Smart


Smart provides loans to individuals who are members of groups which have repaid their group loans. It empowers individuals within groups to start or expand their personal businesses as per the guaranteed scale below:


Loan Details
1st loan Kshs. 25,000
2nd loan; Kshs. 50,000
3rd loan: Kshs 100,000
4th loan: Kshs 200,000
Management fee: 8% This loan is interest free
Requirements:
  • Fill an application form which is available at any Youth Fund Office
  • Group registration certificate
  • Group minutes authorizing and nominating the individual to apply for the loan
  • Copies of identity cards of applicant and guarantors (Group members)
  • Group must have repaid Rausha or Inua loans. The applicant must be running or planning to start an individual enterprise.
  • The group must have demonstrated discipline and organization.
  • Group members must not exceed 16

Other Requirements
  • 80% of the membership will be allowed 1 st round of financing. If he repayment of the 1 st is good then 20% will be financed.
  • A group will nominate beneficiaries at every level and record in group minutes
  • The group will sign an undertaking to guarantee loans advanced to its members.

2. Swift


SWIFT will allow individual members of new youth groups which may not have received Rausha, Inua or Special.


Amounts
1st loan Kshs. 25,000
2nd loan; Kshs. 50,000
3rd loan: Kshs 100,000
4th loan: Kshs 200,000
Requirements:
  • Fill an application form which is available at any Youth Fund Office
  • Group registration certificate
  • Group minutes authorizing and nominating the individual to apply for the loan
  • Copies of identity cards of applicant and guarantors (Group members)
  • 70% of the members must have individual businesses while the remaining 30% must have plans to start

In addition the individual; applicant must provide :

  • A certified copy of a bank statement (3 months)
  • Copy of current business records.
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