Vuka Start UP

August 17, 2017

VUKA START UPINDIVIDUAL START UP LOAN

The Loan targets individual youth who wish to start commercial enterprises

About The Loan

The Loan targets individual youth who wish to start commercial enterprises. The applicant may use the loan for working capital or to purchase income generating assets. The startup loans will be granted to youth with alternative verifiable income and a viable business plan:

 

Loan Details
Loan amount: Min- Max Kshs. 100,000 – 2,000,000
Interest 6%
Management Fee 1% Off Loan Amount
Grace period: 1 month

Repayment period:

The repayment period is as follows

  • Up to Kshs.100, 000:                 Maximum 2 years
  • Up to Kshs. 300,000:                 Maximum of 3 years
  • Up to Kshs. Kshs.500, 000        Maximum 4 years
  • Up to Kshs. Kshs.1, 000,000     Maximum 5 years
  • Above Kshs.1 Million:                 Maximum of 6 years.

Requirements:

  • Applicant must be between 18-34 years
  • In case of partnerships, 70% of the partners should be between 18-34 years
  • Fill an application form which is available at any youth office
  • Youth Business Facility Application Form
  • Facility appraisal Form
  • Facility insurance form
  • Chattels document, where applicable
  • Guarantee Form where applicable
  • Facility offer letter
  • Copy of Title/Relevant proposed security document
  • Site visit report
  • Business proposal for start-ups
  • Borrower will bear cost all costs such as insurance, security perfection, valuation, registration of charge/chattel and legal fees.

Asset Financing

  • YEDF will finance not more than 70% of the value for assets/equipment being purchased.

Asset Financing for the Motor Vehicles

  • YEDF will finance up to 90% of the value of Motor Vehicle (including PSVs, tuk tuk & motorcycles) being purchased.
  • Maximum tenor for New vehicles will be 5 years
  • Maximum tenor for Used vehicles will be 4 years
  • Repayment for motorbikes will be 1 year and TukTuk will to be 18 months
  • The financed Motor vehicle Must be fitted with a tracking device and comprehensively secured
  • Comprehensive Insurance from a reputable Insurance Company with YEDFB noted as the loss payee.
  • Joint registration of the financed Motor vehicle logbook with YEDFB
  • The borrower must have identified a Reputable registered Sacco to join and:
    • Provide the Sacco registration documents
    • Provide Clearance certificate from the Sacco
    • The Sacco must have been in existence for at least 1 (one) year
    • The Sacco/client must guarantee and commit to remit the monthly repayment until the loan is fully settled

 Mode of Loan Disbursement

  • EFT/ RTGS to the client’s account.
  • EFT/ RTGS to the vendor in case of asset financing.

 Security

  • Asset being financed will be used as collateral for the loans.
  • In case the asset to be financed is not a motor vehicle, then additional conventional security will be provided as security in addition to the asset financed.
  • Facilities of Kes. 100,000/= will be secured by flexible security such as chattels, stock, business assets and/or guarantee.
  • All Facilities above Kes.100,000/= will be fully secured by tangible assets such as Financed Capital Assets/Machines, car logbooks, landed property and undeveloped property . Other forms of securities may be considered. YEDFB shall endeavor to observe flexibility in determining appropriate collateral