What is Biashara SME Loan?
What's in it for you?
- Flexible collateral requirements
- Flexible repayment terms
- Top-up feature available
- Specialized Individual Lending Officers
- Loan term of up to a maximum of 84 months
How does it work?
SME Business growth needs :
Biashara SME-Working Capital:
- Working Capital/Business Expansion/Stocks
- Import/Export Financing
- LPO Financing and Invoice Discounting
- Trade Finance Solutions
- Bid and Performance Bonds
- Letters of Guarentee
- Acquisition of Movable and Immovable assets/Equipment
- Acquisition of Plots, Land, Buildings, Project Finance, Construction and other Capex Needs
How do I apply?
- Must be a registered business
- Operative account to be opened and all business proceeds to be channeled through Faulu
- Fill in our application form
- 6 months certified bank statements
- Latest management accounts as at the time of application for Loans above Kshs1.5 M
- Annual Returns for the last 3 years for Companies
- PIN Certificate / National I.D copy
- Copies of Trading License and other specialized licenses where applicable
Want to know more about Biashara SME Loan?If you want to know more, we've put together some frequently asked questions for you.
Flexible Collaterals Subject to risk assessment and appraisal with the following options :
1. First legal charge over the title deeds, joint registration and chattels mortgage over motor vehicles. Furthermore; lien on quoted shares, fixed cash held on FDR account and Lengo Account etc. The loan limit will be set from time to time.
2. Where securities in 1 above are insufficient Fixed and Floating Debenture overall Company Assets to be registered as additional security. The loan limit will not exceed KSHS. 100 Million and a loan term of up to 72 Months.
Directors Personal Guarantees and Indemnity
2.2 Transfer of Shares form signed in blank by each of the Shareholders
2.3 Letter of Authority to transfer shares signed by each shareholder
2.4 Original Certificate of Incorporation
2.5 Original Memorandum and Articles of Association
2.6 Original Share Certificates
2.7 Original Lease for the Business Premises
2.8 Credit Life, Key Man Insurance to be negotiated
2.9 All perils insurance for company assets including stock to be organized from reputable companies in our Panel and Faulu Interest Duly noted on the Policy
2.10 Fire and all perils for Houses, Comprehensive Insurance for Motor Vehicles offered as security to be obtained from reputable companies with Faulu Interest Duly Noted on the Policies
A Business Loan from Faulu Bank is a loan for a fixed amount, repayable over a fixed period, with interest charged at a fixed rate. The duration or term of the loan will depend on what is agreed at the time the loan is made but it will be for a short or medium term, of one to five years. The loan is unsecured which means that Faulu MFB will not take a charge of your property when you take the loan.
A Faulu Bank business loan must only be used for the purposes set out in your business loan application. If you are looking for a credit facility to improve your short-term cash flow, then a business overdraft facility may be more appropriate.
It’s money that you borrow from us. The amount of the money that you borrow, the interest rate and the repayment time period are all fixed. We don’t take security for a business loan.
If you wish to apply for a loan then we will, with your prior consent, conduct a search of your credit history with a credit reference agency. This will leave a record on your credit file which will be seen by other credit providers you may apply to. We may decline your application if you provide us with false information as part of your application, or if there are issues with your credit scores when we check your details with a credit reference agency. We will give you details of the agency that we used to inform our decision so you may contact them. For more information, a leaflet called ‘your application and credit scoring’ is available on request.
To apply for a business loan you must agree to us conducting a credit check on you. It’s very important to provide accurate information in your application. We might decline your application based on the results of your credit check, or if you have provided false information.
If you miss a loan payment, we will record the details with a credit reference agency which could damage your credit rating and may make it more difficult for you to obtain credit in the future. Also, failure to make your loan payments when they fall due may result in legal proceedings being taken against you by Faulu Bank, which may result in us taking enforcement action against you in order to recover the monies that are owed. If you have any current or savings accounts with Faulu Bank or any other member of the Faulu Bank, we may move funds from those accounts to settle any outstanding payments on your loan.
Alternatively, we may terminate the loan agreement early, meaning you will have to pay the outstanding total amount payable early. If you don’t make your repayments and incur significant arrears, we may decide to sell or transfer your loan to a debt recovery company. That company may commence legal proceedings against you that may result in enforcement action being taken against your property for recovery of the monies owed.
If you miss a repayment, we can deduct the missed payment from your other accounts with us. We will also record details with a credit reference agency that could damage your credit rating. If you miss multiple repayments, your credit rating can be damaged, and you might have legal proceedings brought against you or a charging order registered against your house. To avoid getting into this situation please contact us if you are having difficulties in making your repayments.
You will need to make repayments every month by Direct Debit which include the principal (the original loan amount) and interest over the duration of the loan. The monthly repayments will be for the same amount every month until the loan is fully repaid. Details of the amount you have to pay (both monthly and in total, including all interest) the frequency and number of repayments, and the duration of the loan, are contained in your credit agreement.
You pay a fixed amount each month by Direct Debit (made up of the original loan amount and the interest charged). Your credit agreement will detail how much you pay (in total and each month), and when the payments will be due.
Before signing your Personal Loan credit agreement, you should read all the pre-contractual information and the credit agreement provided to you carefully to ensure that this is the best product for you and that you understand the features of this product. If you don’t make your repayments and incur significant arrears we may decide to sell or transfer your loan to a debt recovery company.
You should read all documentation provided to you and consider the information carefully before taking out a Personal Loan to make sure that it is right for you.
You have 14 days to change your mind from the date that you sign the agreement – this can be changing the amount of the loan, seeking a different facility or cancelling the loan altogether. If you exercise the right to withdraw from the agreement you must repay any monies we have advanced to you within 30 days from the date that you notified us of your intention to cancel. If you want to cancel you can do so by contacting us in writing or by telephone. Please refer to the agreement for details and the addresses of who to contact.
You can change your mind up to 14 days after you sign. If you do this, you must repay anything you owe.
If you wish to repay your business loan early in full, you’ll be required to repay the original loan amount, but you will not be required to pay all of the interest due over the remainder of the agreement. We calculate your settlement figure by first determining your ‘settlement date’. For a business loan of less than, or equal to one year, we work out your settlement date by counting forward 28 days from the date we receive your request to settle early.
If your loan agreement is longer than one year we are allowed to calculate the settlement date by counting forward for a further 30 days or one calendar month. We will charge interest up to your settlement date. You can make partial repayments of your loan without incurring any additional charges. Upon making a partial repayment you can choose whether to either reduce the term of your loan or your monthly repayment amount.
You may repay the loan in full at any time before the final payment is due. Details of how to do this are in your agreement. A business loan is designed for borrowing a fixed amount of money for business purposes over the full term of the loan, however, it can be repaid early, if you wish. If there is any part of your documentation that you do not understand or on which you require clarification: please call 0711074000.