Constituency based loans are one of the product loans under the youth enterprise fund. They are aimed at supporting young people start income generating activities at the constituency level. The loans are generally categorized under group loans and individual loans.
A.GROUP LOANS
1.Rausha – This is an interest free loan with a 5% management fee targeting startup group businesses and is payable within 4 months.
The maximum loan amount offered is Kshs 50,000.00 with a repayment period of 12 Months and a 3-month grace period.
Requirements
Fill an application form which is available at any Youth Fund Office at the constituency, valid registration certificate and certified membership list, copies of identity cards of group members, group minutes authorizing the loan application.
The loan amount will be recommended based on the business proposal as seen in the application form, and appraisal of group’s ability to manage the funds
2.Inua – This is an interest free loan with a 5% management fee targeting business expansion purposes only.
The 1st maximum loan amount offered is Kshs 100,000.00 with a repayment period of 12 months, 2nd maximum loan amount is Kshs 200,000 payable in 18 months & 3rd maximum loan is Kshs 400,000 payable in 24 months,
Requirements:
Group must have borrowed and repaid Rausha loan. If not then the group must have existing and well running business enterprise run by the group and have a good credit history with Youth Fund.
Fill an application form which is available at any Youth Fund office, valid registration certificate and certified membership list, copies of identity cards of group members and group minutes authorizing the loan application.
You will also need a copy of a current business license or proof of existence as may be agreed, copy of a 3 months bank statement and recent business records. Security: Chattels ( pledge of personal and business assets)Stocks
3.Special – This is an interest free loan with a 5% management fee targeting special business projects across various economic sectors like agricultural production, livestock trading and other seasonal/periodical businesses.
Start up loan will be a maximum of Kshs 50,000. For expanding/continuing business loans for new and continuing groups will be as follows:
1st loan maximum of Kshs 100,000 payable in 12 months, 2nd loan maximum Kshs 200,000 payable in 18 months and 3rd loan maximum Kshs 400,000 payable in 24 months
Requirements:
Fill an application form which is available at any Youth Fund Office at the constituency, valid registration certificate and certified membership list, copies of identity cards of group members group project will be visited by an authorised officer, group minutes authorizing the loan application and copies of supply contracts (where applicable)
B.INDIVIDUAL LOANS
1.Smart – This is an interest free loan with a 8 % management fee targeting individuals who are members of groups which have repaid their group loans. It empowers the individuals within groups to start or expand their personal business as per the graduated scale below:
Loan amounts offered include 1st Loan: Kshs 25.000, 2nd Loan:Kshs 50,000 and 3rd Loan Kshs 100,000.
Requirements:
Fill an application form which is available at any Youth Fund Office at the constituency, valid registration certificate, copies of identity cards of applicant and guarantors (group members), group minutes authorizing and nominating the individual to apply for loan, group must have repaid Rausha or Inua loans and the individual must be planning to start an individual enterprise.
2.Swift – This is an interest free loan with a 8 % management fee that allows individual members of new youth groups which may not have received Rausha, Inua or Special.
Loan amounts offered include: 1st Loan: Kshs 25.000, 2nd Loan:Kshs 50,000 and 3rd Loan Kshs 100,000
Requirements:
Fill an application form which is available at any Youth Fund Office at the constituency, valid registration certificate, copies of identity cards of applicant and guarantors (group members), group minutes authorizing and nominating the individual to apply for loan.
70% of the members must have individual businesses while the remaining 30% must have plans to start. In addition the individual applicant must provide a copy of current business license or proof of the existence of the business, a certified copy of bank statement( 3 months) and a copy of current business records.
