LPO/LSO Financing Loan

August 23, 2016 Root1

LPO/LSO Financing Loan

About The Loan

 

 

This Loan is available to youth who have been awarded tenders by government agencies (Ministries, parastatals, county governments and constitutional commissions) under the AGPO programme, and from other reputable procuring entities not owned by the government (those listed at the NSE and credible NGOs). Youth can access the Loan as Bid bonds andor Local Purchase Orders (LPO)/ Local Service Orders (LSO) financing

Loan facilities of Kshs.100,000 will be secured by chattels, stock, business assets, or a simple deposit of conventional security and must have two guarantors. Loans above Kshs.100,000 shall be secured by conventional securities.

Local Purchase Orders (LPO) Financing:

  1. The Loan is available to individuals, registered groups, partnerships and companies owned and run by the youth.
  2. Youth can access up to Kshs. 5 million.
  3. The Fund will finance 70% of the LPO amount.
  4. The Loan attracts an interest of 1.5% after 90 days.
  5. A commission of 6.5% of the amount borrowed will be charged. The Loan will be secured using Letter of Undertaking, Bank guarantees, and conventional security.

Requirements

  • A valid LPO from a qualifying agency
  • Undertaking by the procuring entity to pay the tender proceeds in favor of Youth Enterprise Development Fund Board
  • Customer account details