1. Can I borrow a loan to start- up a business?
2. Can I access loan as an individual?
3. Must we apply to for a group(C-YES) loan before applying for the individual ( E-YES) loan?
4. Must we access E-YES loans after completing our 1st C-YES Loan?
5. When do we go for a C-YES loan?
6.When do we go for E-YES loan?
7. How do I pay my YEDF loan?
8. What are the common benefits of YEDF loans?
9. How much interest will C-YES and E-YES loan attract?
10. How much do I apply for YEDF loans?
11. Do I need to write a business proposal to get a YEDF loan?
12. What security do I need for a loan?
13. Do I/we need to have a bank account to access YEDF loans?
14. What happens if I fail to pay my loan on time?
15. What happens if our business is seasonal/periodical and cannot sustain the monthly repayments?
16. Where do I apply the loan at?
17. How else can I access the funds?
18. Why don’t some Financial Intermediaries lend to individuals?
19. Must I be a customer of the FI to access a loan?
Can I borrow a loan to start- up a business?
Yes. YEDF is proving loans to youth to start up businesses. As a group of at least 10, you can access the C-YES Rausha loan to a maximum of Ksh. 50,000. As an individual, you need to be in a group that has had a good history in the repayment of any of our group loans(C-YES). Members can get a loan of up to Ksh. 25,000 to start their businesses. You however need to have a good business plan ready for these loans.
Can I access loan as an individual?
Yes, However, you need to be sponsored by a goup to get a loan under our E-YES scheme which targets individual borrowers.
Must we apply to for a group(C-YES) loan before applying for the individual ( E-YES) loan?
YEDF has an E-YES swift loan that is accessible to youth who already own and running their businesses. Such youth need not apply for any of the loans under the C-YES scheme. What is needed is for the individuals to form a small borrowing group.
Must we access E-YES loans after completing our 1st C-YES Loan?
No. If the group members decide to strengthen then group project, they can borrow a loan under our INUA loans. Loans under this type range from Ksh. 100,000 to Ksh. 400,000.
When do we go for a C-YES loan?
When together as a group you want to run a successful business probably aiming to nature it to a partnership or a limited company. The loan must be utilized by the group in a common project.
When do we go for E-YES loan?
When a group has an objective of empowering their members at their personal level with individual business. The group serves as the borrowing vehicle that also serves as a motivation point in addition to proving guarantee for the loans.
How do I pay my YEDF loan?
- Via MPESA.
- Direct deposits to YEDF Bank accounts.
- You need a code to repay your loan: group/individual. This code identifies your group or you in our loan records.
- The repayment period varies with the size of the loan and the purpose borrowed for. Generally, YEDF loans do not go beyond 24 months.
What are the common benefits of YEDF loans?
- No interest is charged
- No collateral requirement at the start up stages
- Convenient appraisal, repayment and terms
- Comes with free entrepreneurship training
How much interest will C-YES and E-YES loan attract?
No interest is charged on any of the YEDF loans. You repay the principle amount as granted.
How much do I apply for YEDF loans?
The amount of loan to apply depends on the business that you want to start and your business plan thereof. Further it is determined by your own contribution to the project. On the other hand it is important to note the various limits YEDF has placed on each product.
Do I need to write a business proposal to get a YEDF loan?
A proposal is mandatory since funds are for business purpose ONLY. It reflects goals, focus and the road map for an entrepreneur. However, YEDF has made it easy for the youth. The answers to the application forms consists a business proposal. YEDF clients are also trained for this
What security do I need for a loan?
Generally, YEDF loan do not attract securities. However, loans under C-yes Inua above Ksh.100,000 will in addition, to the guarantees attract very flexible securities including business assets bought by YEDF loan proceeds, household assets and stocks.
Do I/we need to have a bank account to access YEDF loans?
YES, YEDF releases all loans in form of cheques.All groups must have a bank account in a bank of their choice. The same applies for individuals applying for loans and E-YES scheme cheque in the name of the applicant.
What happens if I fail to pay my loan on time?
Paying a loan on time creates trust and a good history for any future loan. You also save on time to access a higher amount of credit. Remember, all loan go to youth who are under 35 years. You are growing older and may be locked out of the next stage.
What happens if our business is seasonal/periodical and cannot sustain the monthly repayments?
Apply for the C-YES Special loan which has very flexible repayment terms depending on the type of business. The loan has longer grace periods and spaced intervals.
Where do I apply the loan at?
Loan applications are done at the District level. Application forms are available at all District Headquarters. The loan is applied at your District only.
How else can I access the funds?
YEDF has partnered with other financial and development institutions (FIs) that share the agenda of youth economic empowerment. These include Banks, SACCOs, Microfinance institutions and NGOs. Up to Ksh. 1M loan can be obtained from these institutions. However, loans obtained through this way attract an interest NOT EXCEEDING 8%.
Why don’t some Financial Intermediaries lend to individuals?
The institutions have got policies and different strategies to reach their clientele that YEDF relies on to also the youth. This is agreed at the engagement level.
Must I be a customer of the FI to access a loan?
Most institutions/organisations will require that you be a current customer to enjoy its facilities. By being a good customer, mutual trust is created and it is easy for them to manage your loan. Furthermore, after your 35th year, you will need these institutions as financial partners. It is in order to cultivate a good relationship.