Bid Bond & LPO/LSO Financing Loan

August 23, 2016

Bid Bond/LPO Financing

Support young people participating in government tenders

About The Loan

YEDF is offering Bid Bond and Local Purchase Order (LPO)/Local Service Order (LSO) financing to youth participating in government tenders. The loan is available to individuals, registered groups, partnerships and companies owned and run by the youth.

Bid Bond

The features of the bid bond:

  • Maximum amount available for bid bond is Kshs. 2 Million
  • A commission fee of Kshs. 1,000 will be charged
  • No security is required

What you need to qualify for the bid bond:

  • Be registered with the relevant government body.
  • For business entities membership composition must be at least 70% youth (18-34 years).
  • Submit completed application form.
  • Letter of request from the applicant
  • Tender advert
  • Guarantee (If any)

The documents you are required to submit:

  • Application form
  • Tender documents
  • Guarantee forma (if any)
  • ID copy of the applicant/ Directors in case of a limited company
  • Certificate of incorporation or business registration certificate
  • Articles and Memorandum in case of limited companies
  • Valid compliance certificate
  • Certified 3 months bank statements
  • AGPO certificate
  • Valid CR12 for limited companies


Loan Details

Mode of Loan Disbursement:
In the case where the LPO is for consumables the loan shall be availed to the customer’s account via EFT/RTGS/CHEQUE. Where the LPO is for the capital goods, YEDF shall pay directly to the supplier.

Repayment period:The loan shall be paid within 90 days.

Security:

  • For amounts of Kshs. 1 million and below a letter of undertaking from the procuring entity will serve as security
  • For amounts above Kshs 1 million the following will form part of security
    • Letter of undertaking
    • Guarantees
    • Landed property
    • Motor Vehicle

LPO /LSO FINANCING

The features of the LPO financing loan:

  • The maximum amount that one can get in one loan is KShs 20 million.
  • YEDF will finance a maximum of 70% of the LPO amount
  • Only LPOs/LSOs from government Ministries and agencies will be financed

What you need to qualify for the LPO loan:

  • Be registered with the relevant government body.
  • For companies, groups and partnerships membership composition must be at least 70% youth (18-34 years).
  • Have a valid LPO/LSOs
  • Have an undertaking by the procuring entity to pay the LPO proceeds in favour of Youth Enterprise Development Fund
  • Have account details — KCB
  • Submit completed loan application forms.

The documents you are required to submit:

  • Copy of LPO/LSO being financed.
  • Two most recent pass port affixed at the right corner of application (for each director)
  • Copy of security document
  • Resolution to borrow in case of a Limited Company capturing amount, purpose,payment period and security offered (must be sealed & signed by all directors)
  • Customer bank account details form (KCB)
    Copy of business registration certificate/certificate of incorporation
    Valid CR12 for limited companies
  • Articles and Memorandum of Association
  • Copies of id and pin for all borrowers
  • Pin certificate for the Company in case of a Limited Company
  • Tax Compliance certificate
  • Relevant business licenses
  • Business records and copy of LPOs previously serviced
  • Certified 6 months bank statement
  • Certified loan statement if any
  • Audited report accounts for the last 2 years in case of the Limited Company
  • AGPO Certificate

Other conditions

  • The asset being offered as security must be valued and customer will incur the valuation expenses.
  • In case the borrower wishes to use land as security he/she will pay the legal charges and any other cost.
  • Commission  Fee: 6.5% of the principal amount for the first 90 days (inclusive of the insurance). For the subsequent period, the loan will attract an interest of 1.5%  per month.