KCB'S Checklist For Groups, Chamas Seeking Economic Stimulus Loans
Updated on: Oct 26, 2020
The COVID - 19 pandemic has taken a toll on the nations economy, not sparing the counties Laikipia included. In a response to the pandemic, Laikipia County has reached an agreement with stakeholders on an economic stimulus package to a tune of about Ksh. 3.3 billion.
The package has been established with the support of financial institutions among them; Cooperative, Kenya Commercial Bank (KCB), Equity, Family and the National Bank.
This package is aimed at providing an economic boost to small and medium enterprises (SMEs) and about 5,000 beneficiaries from Laikipia County are expected to dip hands into this cookie jar.
Listed under the beneficiaries are groups and chamas which run a business, asset financing and table banking.
However, the deal comes with some few requirements in order to qualify for the loans under the package. For instance, KCB bank has issued a list of requirements for the groups seeking to benefit from the bag of money. For a group to qualify, it must have been in existence for at least one year.
The group should present legal proof which is a certificate of registration together with the legal requirements from the County Government. On top of all that, the group needs to show minutes from its meetings with group members who should be between five to fifteen people.
The chama does not have a lot to present as security for it to secure a loan. The financial background needed, requires a group to show its banking history for a period not less than six months. This is needed to show how the groups relationship with a bank has been.
As for guarantors, a personal guarantee by the group officials is what groups need. The group officials will therefore have to present their national identification and a KRA Pin.
To stamp the security seal on the deal, the same leaders will be required to give their residential details.
Interested groups should be able to provide the existing business records where possible. These records include receipts of transactions made by the group, and invoices, to show whether there has been growth for the period they have been in business.
KCB bank has issued a minimum of 10% saving ratio to the amount needed, that should be met. The stimulus package for groups aims to leverage businesses through loans running for a tenure of one year.
What a way to salvage Laikipia's economy!
The package has been established with the support of financial institutions among them; Cooperative, Kenya Commercial Bank (KCB), Equity, Family and the National Bank.
This package is aimed at providing an economic boost to small and medium enterprises (SMEs) and about 5,000 beneficiaries from Laikipia County are expected to dip hands into this cookie jar.
Listed under the beneficiaries are groups and chamas which run a business, asset financing and table banking.
However, the deal comes with some few requirements in order to qualify for the loans under the package. For instance, KCB bank has issued a list of requirements for the groups seeking to benefit from the bag of money. For a group to qualify, it must have been in existence for at least one year.
The group should present legal proof which is a certificate of registration together with the legal requirements from the County Government. On top of all that, the group needs to show minutes from its meetings with group members who should be between five to fifteen people.
The chama does not have a lot to present as security for it to secure a loan. The financial background needed, requires a group to show its banking history for a period not less than six months. This is needed to show how the groups relationship with a bank has been.
As for guarantors, a personal guarantee by the group officials is what groups need. The group officials will therefore have to present their national identification and a KRA Pin.
To stamp the security seal on the deal, the same leaders will be required to give their residential details.
Interested groups should be able to provide the existing business records where possible. These records include receipts of transactions made by the group, and invoices, to show whether there has been growth for the period they have been in business.
KCB bank has issued a minimum of 10% saving ratio to the amount needed, that should be met. The stimulus package for groups aims to leverage businesses through loans running for a tenure of one year.
What a way to salvage Laikipia's economy!
