Micro Small and Medium Enterprises (MSMEs) are central to Kenya’s economy as they provide jobs to over 15 million workers and contribute to the national income. The MSMEs are among businesses hardest-hit by the Covid-19. Lack of funds and low business activity are some of the major challenges hurting small and medium-sized businesses.
In a country where every sector is dealing with its own Covid-19 related issues, finding financing can be an uphill task. Cognizant of the tough cashflow situations small businesses find themselves in Co-operative Bank has fine-tuned its loan product to give a lift to MSMEs.
One of its interesting product is the overdraft facility, which comes in handy for businesses in need of urgent cash injection to finance their operations. The overdraft facility offers the much needed working capital for businesses that would have otherwise halted operations due to a shortage of cashflow.
Business doesn’t need to come to a halt, for example, when payments are delayed. The Co-operative Bank MSME Overdraft facility allows a business to withdraw from its current account beyond zero to a limit agreed with the bank. This allows flexibility to settle bills before payments of work done. The limit is available for a maximum of 12 months and renewable subject to performance.
Have a look at the amounts you can borrow under the MSME Overdraft based on your level of business and security that you provide:
|Unsecured overdraft loan (Ksh)||600,000||6,000,000||10,000,000|
|Secured overdraft loan (Ksh)||3,000,000||8,000,000||15,000,000|
A business or business owner can borrow money for a period of time to finance business expansion or to raise business supply capabilities. The amount can be repaid up to 60 months based on your level of business and the type of security you provide as outlined below:
|Unsecured Term Loan||600,000||6,000,000||10,000,000|
|Partially Secured Term Loan||3,000,000||8,000,000||15,000,000|
|Payment period for unsecured loan||Up to 24 months||Up to 24 months||Up to 24 months|
|Payment period for secured loan||Up to 60 months||Up to 60 months||Up to 60 months|