Laikipia County, Co Op Bank Launch Ksh 300 Million To Support Entrepreneurs
Updated on: Jul 10, 2020
Co-operative Bank of Kenya has partnered with Laikipia County to injected Ksh 300 million initial seed capital to Laikipia Enterprise Fund in a credit deal aimed at helping stimulate businesses and co-operatives in the county.
The fund targets about 7,000 entrepreneurs in the county in mitigation of Covid-19 woes.
Through this facility, the bank will provide discounted credit to businesses and cooperatives in Laikipia as an effort to inject capital infusion for the businesses and enterprises to take off.
The deal gives borrowers very low interest rates made possible by the interest-sharing arrangement, whereby the county will be offering an interest subsidy of 5 per cent, thereby reducing the bank lending rate from 12.1 per cent to 7.1 per cent per annum for all borrowers.
In addition, borrowers will enjoy a reduced appraisal fee at 1.5 per cent of the approved loan amount.
Repayment period for the loans will be up to 12 months for SMEs and up to 18 months for co-operatives.
The fund targets about 7,000 entrepreneurs in the county in mitigation of Covid-19 woes.
Through this facility, the bank will provide discounted credit to businesses and cooperatives in Laikipia as an effort to inject capital infusion for the businesses and enterprises to take off.
The deal gives borrowers very low interest rates made possible by the interest-sharing arrangement, whereby the county will be offering an interest subsidy of 5 per cent, thereby reducing the bank lending rate from 12.1 per cent to 7.1 per cent per annum for all borrowers.
In addition, borrowers will enjoy a reduced appraisal fee at 1.5 per cent of the approved loan amount.
Repayment period for the loans will be up to 12 months for SMEs and up to 18 months for co-operatives.
