This article outlines the Faulu Microfinance Bank loan products. It is one of Kenya’s licensed microfinance banks that has been in business for 3 decades.
The bank, a part of The UAP Old Mutual Group, was recently named one of the country’s fastest-growing financial institutions. Its headquarters are located on Ngong Lane, off Ngong Road in Nairobi. They have about 55 branches in Kenya.
Faulu Microfinance Bank Loan Products
Retail/Consumer Loans, Micro & Group Loans, SME/Business Loans, and Agribusiness Loans are the four types of Faulu Microfinance Bank loan products.
Here is a detailed list and description of Faulu Microfinance loan products with the features and benefits of each loan.
a) Retail/Consumer Loans
1. Check-Off Loans
These are check-off loans for salaried employees, TSC, civil servants, disciplined forces, county governments, parastatals, and other designated corporates.
Features and Benefits
- Minimum of Ksh 10,000; maximum of Ksh 3,000,000
- Loan terms of up to 84 months are available.
- Interest rates that are competitive
- Quick loan approval after application
- There is a top-up feature available.
2. Corporate Check-Off Loans
This product is intended for salaried customers whose conditions of engagement are governed by a Memorandum of Understanding (MOU) between Faulu Microfinance Bank and the respective institutions.
Features and Benefits
- Minimum of Ksh 10,000; maximum of Ksh 3,000,000
- Loan terms of up to 84 months are available.
- Quick loan approval after application
- There is a top-up feature available.
3. Tamba Imara Check-Off Loan
This product is aimed at salaried individuals who work with institutions with which Faulu does not have an MOU, such as NGOs, local and international agencies, and so on.
4. Faulu Unsecured Salary Advance
This is a short-term emergency loan for Faulu Salary Account clients.
Features and Benefits
- A maximum of four times your net wage, up to a maximum of Ksh 100,000.
- Automated Standing Orders from Faulu Salary Account to Loan Account on a monthly basis
- Flexible repayment terms
- Quick turnaround time
Read also, List of SMEP Microfinance Loan Products and Contacts
b) Micro & Group Loans
1. Faulu Micro Loan
This product is aimed at small enterprises and entrepreneurs. It is appropriate for working capital, LPO financing, and commercial emergencies.
Features and Benefits
- When the existing loan is 75% paid off from the second loan cycle, refinancing is permitted subject to appraisal.
- Minimum loan amount: Ksh 1 million Maximum: Sh3 million
- An 18-36 month tenure
2. Group Business Loan
This product is aimed at self-help organizations that want to expand and enhance their enterprises.
Features and Benefits
- Options for flexible collateral
- Access to various loans contingent on ability
- Loan amount Minimum: Ksh 5,000 Maximum: Ksh 500,000
- Minimum tenure: 3 – 24 months
3. Faulu Chama Loan
It operates a Faulu Chama account and targets both formal and informal groups such as investing clubs, merry-go-rounds, and welfare groups.
4. Pesa Chap Chap
This is a mobile emergency loan for a brief period of time.
Benefits and Features
- On-the-spot payment by phone
- Loan amount: Ksh 300 – Ksh 10,000
- Term: ten days
c) SME/Business Loans
1. Biashara SME Loans
They are intended to help firms scale up by providing access to affordable financial services.
2. Asset Finance
With reasonable insurance premium financing, the Faulu Asset Finance product helps SMEs and individuals acquire assets such as personal automobiles, lorries, trailers, plant machinery, and so on.
3. Faulu Landlord Loan
This solution is provided to landlords who want to help their company in general. It is provided to Landlords in Cities, Counties, and Municipalities that have developed properties with reliable rental revenue.
4. Bid Bonds & Guarantees
They are useful for supplying and contracting clients with governments, parastatals, private entities, and distributors to:
- Ensure a seamless business flow
- Increase business opportunities
- Assist customers in managing their business risks and supply chains.
5. Insurance Premium Financing (LPF)
The program allows you to pay your insurance payments in installments rather than all at once.
Benefits and Features
- Helps individuals and small businesses pay insurance premiums with reliable insurance carriers.
- Loan amount: Ksh 3,000 to 3 million
- Tenure of up to ten months
6. Ushirika Loan
This program provides flexible financing options for income-generating projects of churches and para-church groups.
Benefits and Features
- Loan for development initiatives and asset purchases for churches and registered groups
- Loan amounts range from Ksh 50,000 to Ksh 20 million.
- A two-month grace period is possible.
d) Agribusiness Loans
1. Green Gold Loan
This is a product developed to assist tea farmers in meeting their immediate cash demands.
Benefits and Features
- Loans of up to 75% of the value of tea bonuses earned in the last three years are available.
- Flexible loan repayment plans designed to handle tea bonus payouts
- Loan amount: up to Ksh500,000
- Duration: up to 12 months
2. Maziwa Loan
This product enables farmers to purchase dairy cows in order to increase milk yield and farm efficiency.
Benefits and Features
- Repayment terms that are flexible based on the milk remittance cycle
- Loan amount: up to $3 million
- Duration: up to 36 months
3. Nafaka Loan
It is great for farmers who trade in cash crops like maize, wheat, and sorghum in order to acquire funding for farm inputs.
Benefits and Features
- Loan amounts range from Ksh 5,000 to Ksh 3 million.
- 3-12 months tenure
- Flexible repayment terms determined by crop cycle
Faulu Microfinance Bank Contacts
Head Office: Ngong Lane off Ngong Road, Nairobi
Phone: 0711 074 000, 0711 074 074
