This is a list of loan products offered by Choice Microfinance Bank. It is one of the 13 licensed microfinance banks in Kenya that started operations as a deposit-taking microfinance in 13th June 2015. The bank was established by a group of Kenyans living in the US to enable investment of diaspora funds in the country to improve livelihood and break poverty cycles. It is headquartered at Siron Place along Magadi Road in Ongata Rongai, Kajiado County.
Choice Microfinance Bank Loan Products
1.Fanikio Loan (Group 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.
Features
• Loan size from Ksh 5000 to 100,000
• Low-Interest Rates
• Repayment period 3,6,9,12 months
• Processing Period 24 hours i.e. 1 day
• Savings 35% of the 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
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.
2. Lima Loan (Group Loan)
This product targets smallholder farmers who lack the means and capacity to promote their products i.e poultry, dairy farmers, goat farming and pigs farming.
Features
• Initial Loan size – maximum 100,000
• Processing period 24hours – 1 day
• Repayment period 12 months
• 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
Requirements
• The client must be in the 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
3. School Fees Loan
This product is designed to enable the parents to pay school fees for their children.
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
Requirements
• Fees structure from school to be availed
• Account to be operated for a minimum of 3 Months for the individuals.
4.Choice Micro-Loan
Features
• Loan size Ksh. 50,000 -300,000/- . The maximum amount of the first loan is 100,000/=
• Repayment period 12 months
• Weekly and monthly loan repayments
• Low-Interest rate on reducing balance
• Processing period 24 hours
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.
5. Jitegeme Loan (Personal Loan)
This product is offered to civil servants, TSC members, and employees of reputable organizations approved by the Board, to finance purposes such as asset acquisition and emergency needs such as school fees, medical bills etc.
Features
• Loan size 10,000-100,000/=
• Repayment Period 3 to 24 months.
• Loan Processing period within 24 hours
• Frequency of payment- Monthly
• Low-interest rates
Requirements
• Must be a civil servant, an employee of an organization with a Memorandum of understanding with Choice MFB approved by the management and the board.
• Salary must pass through an account with Choice MFB 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 Choice MFB.
6. Salary Advance
This product provides advances to salaried customers to meet their financial requirement. It’s a short term financing for employees.
Features
• Loan size 5,000 -100,000
• Loan Processing within 24 hours
• Flexible Repayment period between 3 to 12 months
• Monthly loan payment
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.
7. Mkopo Okoa Loan (Emergency Loan)
This product provides advances to salaried customers to meet unanticipated financial requirements. It targets employees only.
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
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
8. Biashara Dhabiti Loan (Business Loan)
This product offers loans to entrepreneurs and business entities to cater for diverse business requirements.
Features
• Access to loans from 300,000 to 500,000/=
• Low-Interest rates on reducing balance
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.
9. Supa Biashara Loan (Business Loan)
This product provides funds to finance working capital requirements of business entities as well as other business requirements.
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
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.
10. Choice Asset Finance (Business Loan)
Features
• Loan size from 300,000/=
• Flexible repayment period.
• Low-Interest rate on a flat rate
• Maximum Processing period is 48 hours
• Frequency of payment – monthly
• Financed asset becomes security for the 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.
11. Insurance Premium Finance (IPF Loan)
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
Requirements
• 20% of the premium amount will be paid upfront in cash or cheque to Choice 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.
12. 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.
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 the guaranteed amount per quarter.
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
13. 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.
Features
- Maximum amount KES 5M
- No collateral required
- Maximum period of 3-months
Requirements
- Applicant to avail copy of Tender Document
- The 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.
14. Lpo Financing
This product enables contractors or suppliers to service their orders without having to struggle for funds to service the orders.
Features
• Short processing period of up to 48 hours.
• 100% financing.
• Applicant need not be an existing ChoiceMFB account holder.
• Competitive interest rate on a flat rate.
15. Chama Loan
This product is designed for 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 up to 24months
• Attractive interest rate
• Processing period 24hours after approval
• Free training
• Frequency in repayment – weekly/monthly
16. Chemsha Biashara
This loan product targets 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 hour
• Frequency in repayment – daily/weekly
Choice Microfinance Bank Contacts
Location: Siron Place, Magadi Road, Ongata Rongai
Phone: 020 3882 206, 0750 728 055, 0736 662 21
