Choice Microfinance Bank Limited

FANIKIO LOAN (GROUP LOAN)

Group lending entails lending to individuals who are members of a self-selected group whereby the whole group is liable for the repayment of the loan. This product is designed for:- Formal and informal savings groups (Chama’s) such as self-help groups, Merry-go-rounds and other solidarity groups, Jua Kali MSE operators, Youth and women groups, Occupation based groups and Community based groups

Requirements

• Be a member of a registered group
• Copy of national ID of the borrower
• Copy of national ID of the next of kin
• Mobile details form
• Passport size photo
• Utility Bill and/or Lease agreement
• Loan form dully completed
• Business records where applicable.

Features

• Loan size from ksh 5000 to 100,000
• Very low Interest Rates
• Repayment period 3,6,9,12 months
• Processing Period 24 hours i.e. 1 day
• Savings 35% of loan amount in the first cycle. This can be reduced on subsequent loan.
• Members loan to be credited to their personal account.
• Pre – loan Training Period for group members to access loan 6-8-weeks

LIMA LOAN (GROUP LOAN)

Focuses on small holder farmers who lack the means and capacity to promote their production. This includes the poultry, dairy farmers, goat farming and pigs farming.

Requirements

• The client must be in farming business. Farm remittances to be done through the bank.
• Insurance cover for theft, against livestock deaths or crop failure, death and permanent disability
• Security – Group Guarantee (individual and group savings), chattels mortgage Lawyer fees

Features

• Initial Loan size – maximum 100,000
• Processing period 24hours – 1 day
• Repayment period 12 months
• Very low Interest Rates
• Repayment Mode – To be structured to fit the nature of business.
• Loan can be accessed by both groups and individuals.
• Flexible collateral i.e co-guarantorship

SCHOOL FEES LOAN

Designed to enable the parents pay their school fees for their children. This targets allchildren in all educational levels. Targets both groups and individuals.

Requirements

• Fees structure from school to be availed
• Account to be operated for minimum of 3 Months for the individuals.

Features

• Loan size up to 5000 – 100,000/=
• Repayment period 12 months
• Low interest rates on reducing balance
• Processing period 24 hours
• The payment to be done directly to the school.
• Frequency of payment – weekly/monthly

CHOICE MICRO-LOAN

Requirements

• Customer to have operated the business for the last 6 months.
• Active banking with choice Bank for 6 months or any other financial Institution.

Features

• Loan size Ksh. 50,000 -300,000/- . Maximum amount of first loan is 100,000/=
• Repayment period 12 months
• Weekly and monthly loan repayments
• Low Interest rate on reducing balance
• Processing period 24 hours

JITEGEME LOAN (PERSONAL LOAN)

This loan product will be offered to civil servants, TSC members, and employees of reputable organizations approved by the Board, to finance purposes such as Asset acquisition e.g. household items, solar panels etc. Emergency needs such as school fees, medical bills etc.

Requirements

• Must be a civil servant, an employee of organization with a Memorandum of understanding with CMFB approved by the management and the board.
• Salary must pass through an account with ChoiceMFB and routed for about 3 months prior to loan application and continues processing the loan through CMFB.
• A letter from employer committing to remit salary through Choice MFB account for the duration of the loan.
• Chattels and Affidavit for pledges where applicable.
• Guarantee of 2 fellow colleagues processing the salary through CMFB.

Features

• Loan size 10,000-100,000/=
• Repayment Period 3 to 24 months.
• Loan Processing period within 24 hours
• Frequency of payment- Monthly
• Very low interest rates

SALARY ADVANCE

This product provides advances to salaried customers to meet their financial requirement. It’s a short term financing for Employees.

Requirements

• The salary must have been remitted through the account for the last three months
• Must have an irrevocable letter from employer committing to remit salary to Choice MFB for the loan duration.

Features

• Loan size 5,000 -100,000
• Loan Processing within 24 hours
• Flexible Repayment period between 3 to 12 months
• Monthly loan payment

MKOPO OKOA LOAN (EMERGENCY LOAN)

This product provides advances to salaried customers to meet unanticipated financial requirements. It targets employees only.

Requirements

• Salary advance to be repaid within one month
• The salary must have been remitted through the account for the last three months
• Must have a letter from employer committing to remit salary to Choice Microfinance Bank

Features

• Loan issued of up to 50% of net salary ranging from 5,000-100,000
• Loan Processing within 24 hours
• Repayment period 1 month
• Competitive Interest Rates
• Monthly loan payment

BIASHARA DHABITI LOAN (BUSINESS LOAN)

Business loans are loans to individual entrepreneurs and business entities to cater for diverse business requirements.

Requirements

• Must have been a Choice MFB customer for at least six months and actively operating their account. Or banking with any other institution.
• Security accepted includes – property title deeds, shares from publicly quoted shares, life insurance policies, motor vehicle logbooks and personal guarantors. The facility must be fully secured.  Joint registration, legal charging, and fixed deposit.

Features

• Access to loans from 300,000 to 500,000/=
• Low Interest rates on reducing balance

 SUPA BIASHARA LOAN (BUSINESS LOAN)

This product provides funds to finance working capital requirements of business entities as well as other business requirements.

Requirements

• Customer to actively operate an account with the bank for 3 months
• The vehicle must not be more than 8 years old.
• A Quotation is required in case of the other assets. The payment is done directly to the supplier.

Features

• Access to loans from 500,000 to 2M subject to verifiable ability to repay.
• Low Interest rates on reducing balance
• Loan processing within 48 hours
• Monthly loan repayment.
• Flexible repayment duration

CHOICE ASSET FINANCE (BUSINESS LOAN)

Requirements

• Be a member of a registered group
• Copy of national ID of the borrower
• Copy of national ID of the next of kin
• Mobile details form
• Passport size photo
• Utility Bill and/or Lease agreement
• Loan form dully completed
• Business records where applicable.

Features

• Loan size from 300,000/=
• Flexible repayment period.
• Very low Interest rate on flat rate
• Maximum Processing period is 48 hours
• Frequency of payment – monthly
• Financed asset becomes security for the loan.

INSURANCE PREMIUM FINANCE (IPF LOAN)

Requirements

• 20% of the premium amount will be paid upfront in cash or cheque to the MFB
• Security will be postdated cheques will be obtained for the loan instalments
• Customer to have actively operated an account with the bank for 3 months.

Features

• Loan size– 80% of the Premium payable
• Interest payable – 10% flat rate with a minimum of Kshs.5,000/=
• Repayment period – 1 to 10 months
• No loan application fees

BANK GUARANTEE

A Bank Guarantee is a specified amount (limit)payable by CHOICE MFB  to a beneficiary (seller or supplier) in the event the counterparty( the applicant) defaults on the underlying contract in which the MFB is the guarantor.

Requirements

• Client must be a registered company
• Client must maintain an account with Choice
• KYC rules apply
• Applicant to indemnify CHOICE MFB from any claims by executing an indemnity agreement

Features

• The guarantee amount is only payable if the counterparty defaults under the contract
• Processing period 48 hours
• Minimum bank guarantee of kshs.5000/= with a maximum amount of Ksh. 5M
• Extension of period 2.5% on guaranteed amount per quarter.

BID BOND

A Bid Bond or Tender Security is a facility availed to clients for presentation to Procuring Entities in a tender process, in support of the client’s bid. CHOICE MFB will issue bid bonds/tender security to enable tendering firms to obtain these guarantees for the contracts they bid for.

Requirements

• Applicant to avail copy of Tender Document
• Applicant may or may not maintain an account with CHOICE MFB
• Applicant to fill in a Bid Bond Application Form
• Client to execute an indemnity Agreement indemnifying CHOICE MFB from any claims, losses, or other liabilities which CHOICE MFB may suffer arising out of any breach of performance by the bidder.

Features

• Maximum amount KES 5M
• No collateral required
• Maximum period of 3-months

 LPO FINANCING

This product enables contactors or suppliers to service their orders without having to struggle for funds to service the orders.

Features

• Short processing period of upto 48 hours.
• 100% financing.
• Applicant need not be an existing ChoiceMFB account holder.
• Competitive interest rate on flat rate.

CHAMA LOAN

This loan products caters to registered investment groups who need a loan as an entity to advance their development agenda.

 Features

• Loan of size Ksh. 500,001 to Ksh. 3,000,000
• Repayment period upto 24months
• Attractive interest rate
• Processing period 24hours after approval
• Free training
• Frequency in repayment – weekly/monthly

CHEMSHA BIASHARA

This loan product is geared towards small-scale traders who are in the business of fast moving goods and require float for working capital.

 Features

• Loan of size Ksh. 1,000 to Ksh. 10,000
• Repayment period 1 month
• Processing period 1 hours
• Frequency in repayment – daily/weekly