Bank courts SMEs with loans
What you need to know:
- The bank also plans to set up a branch at the Namanga border, as it seeks to increase its customer base.
- “We have also revamped the relevant business banking products such as trade finance for business that handle imports and exports,” National Bank managing director, Mr Munir Ahmed, said during the launch on Friday.
- To access the AFB loan, dubbed Business Cash Advance, a trader must have been in operation for over six months recording a monthly turnover of Sh50,000 with one of AFB’s partners.
National Bank has launched a new product targeting micro and small businesses.
Dubbed “Jenga Biashara,” the product will enable an entrepreneur with Sh200 open a savings account with the bank. Account holders would then be able to access loans ranging between Sh5,000 and Sh1 million with a repayment period of 12 months.
“We have also revamped the relevant business banking products such as trade finance for business that handle imports and exports,” National Bank managing director, Mr Munir Ahmed, said during the launch on Friday.
Other benefits at the customer’s disposal include unlimited withdrawals, access to debit cards as well as mobile and Internet banking.
The loan is designed to finance micro-entrepreneurs who require working or investment capital to expand their business.
Financial institutions are modelling their products to suit SME transaction habits.
NAMANGA BORDER
The bank also plans to set up a branch at the Namanga border, as it seeks to increase its customer base.
“We also have plans to set up other branches in Ngong by next year,” Mr Ahmed said.
According to Mr Ahmed, is seeking to become one of the top five banks in the country by 2017. At the moment, the financial institution is targeting the unbanked SMEs using the new product, Jenga Biashara.
Recently, consumer finance company, AFB, unveiled a credit product targeting the retail industry to enable SMEs access loans of between Sh50,000 and Sh5 million without a collateral.
To access the AFB loan, dubbed Business Cash Advance, a trader must have been in operation for over six months recording a monthly turnover of Sh50,000 with one of AFB’s partners.
The cash advance is offered based on a business’ turnover and the repayment is form of a percentage of the daily turnover implying that there are no fixed monthly repayments.
