VUKA LOANS

August 23, 2016

Vuka Loan

About The Loan

 

 

VUKA is available to youth who wish to start or expand businesses. Applicants may use the Loan for working capital or to purchase business assets.

Vuka start-up Loan

  • Advanced to youth with an alternative verifiable income and business plan
  • Youth can access up to Kshs. 500,000.

Vuka expansion Loan

  • Youth must have a business that has been in operation for at least six months and one year for limited companies
  • Youth can access from Kshs. 100,000 up to Kshs. 5,000,000
  • Attracts and interest of 6% and a one-off management fee of 1% netted off from the Loan at disbursement
  • Grace period is one month

Vuka asset financing

  • The Fund will finance 75% of the value of the asset being purchased
  • In the case of motor vehicles, the Fund will finance up to 90% of the value of motor vehicles (including PSVs, tuk-tuks & motorcycles) being purchased and must be new.
  • Motor vehicles to be purchased must not exceed eight years from the year of manufacture
  • The financed motor vehicle will be fitted with a tracking device and comprehensively insured
  • The asset should relate directly to the business being undertaken
  • Additional security will be provided in addition to the asset financed.
Asset TypeRepayment Period
New Vehicles5 years
Second-hand Vehicles4 years
Motorcycles1 year
Tuk tuks1.5 years
PSVs3 years
Other Assets6 years

The repayment period will be determined by the amount advanced to the client as listed below

AmountRepayment period
Up to Kshs. 100,0002 Years
Up to Kshs. 300,0003 Years
Uo to Kshs. 500,0004 Years
Up to Kshs. 1,000,0005 Years
Up to Kshs. 5,000,0006 Years

Requirements

  • In the case of partnerships, 70% of the partners should be between 18-34 years
  • The Borrower will bear all costs such as insurance, security perfection, valuation, registration of charge/chattel and legal fees.

Required Documentation

  • Dully filled application form Guarantee form where applicable
  • Business proposal for start-ups
  • Copies of ID and PIN for all borrowers/directors
  • Two most recent colored passport photos
  • Copy of security document
  • Resolution to borrow in the case of a limited company, capturing amount, purpose, payment period, and security offered (must be sealed)
  • Bank account details form
  • Copy of business registration certificate/certificate of incorporation
  • Copy of Articles and Memorandum of Association
  • Pin certificate for the company in the case of a limited company
  • Tax Compliance Certificate
  • CR12 for company
  • Relevant business licenses
  • Sketch map of the residence and business premises of the Borrower
  • ID and PIN of guarantors
  • Map to the residence of guarantors
  • Copies of relevant business records
  • Certified bank statement (six months) of the applicant
  • Certified loan statement, if any
  • Audited accounts for the last two (2) years in the case of a limited company that has operated for more than two (2) years.
  • Three (3) latest original pay slips certified by the employer
  • Letter of Appointment/Employment Letter
  • Evidence of lien held with the bank
  • Any other relevant document which is in line with the business to be funded

Security/Collateral

  • Loan facilities that will be secured through chattels must have two guarantors.
  • Facilities of Kshs.100,000 will be secured by flexible security such as chattels, stock, livestock, business assets and/or guarantees.
  • Chattels, stock, livestock, and business assets can be used to secure repeat or Top-up Loans of up to Kshs.300,000 after successful repayment and without defaulting any monthly installment of the first Loan of Kshs.100,000
  • Conventional securities Must be provided for:
  • i. All first-time Loan facilities above Kshs.100,000. ii. Top up/repeat loans above Kshs.300,000.
  • Amount in lien. The lien shall be maintained on the account until the Loan is settled.