Youth enterprise development  fund  provides the following loans to groups and individuals at the constituency level

 

A: GROUP LOANS

1.Rausha 

• loans are payable within 4 months (quarterly).appraisal of this loan targets start up group businesses only
• loan amount maximum ksh. 50,000 ( NO INTEREST)
• Repayment period:  12 months
• grace period 3 months

requirements:

• 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
• 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 groups ability to manage the funds

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2.Inua

this loan is for business expansion purposes only

loan amount

• 1st loan maximum of ksh . 100,000 payable in 12 months
• 2nd loan maximum ksh. 200,000 payable in 18 months
• 3rd loan maximum ksh 400,000 payable in 24 months
• management fee 5% this loan has no interest

requirements:

• group must have borrowed  and repaid Rausha loan.if not then the group must:
• have existing and well running business enterprise(s) run by the group
• have a good credit history  with Youth Fund or other lending institutions/organisations
• 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
• group minutes authorizing the loan application
• a copy of a 3 months bank statement
• recent business records

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security:

• chattels(pledge of personal and business assets)
• stocks
• charge over a simple deposit of ownership document of assets  directly financed  by YEDF e.g logbooks

However, this will depend on a type of business activity  that the group engages in

3. Special

this is a new loan targeting special business projects  across various economic sectors

these include:

• agricultural production- horticulture
• livestock trading or fattening
• other seasonal/periodical businesses where  the client cannot be able to repay their loan  on a monthly basis

Amounts: start up loan will be ksh. 50,000 Maximum.Expansion /coniruing business loans for new and continuing groups will be as follows:

• 1st loan : maximum of ksh 100,000 payable in 12 months
• 2nd loan: maximum of ksh 200,000 payable in 18 months
• 3rd loan: maximum of ksh 400,000 payable in 24 months
• management fee: 5% this loan has no interest

requirements:

• fill an application form which is available at any youth fund office
• valid registration certificate
• copies of identity cards  of group members
• group project will be visited by an authorised  officer
• group minutes  authorizing the loan application
• copies of supply contracts( where applicable)
• special feature : longer grace periods and periodical(quartely,half year or bullet) repayments will be applied depending on project  maturation
• horticultural project loans will be based on the nature of the business and the business needs of the borrowers.

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B.INDIVIDUAL LOANS

1.Smart

smart provides loans to individuals who are members of groups which have repaid their group loans.it empowers individuals  within groups to start or expand their personal  businesses as per the graduated scale below;

1st loan; ksh 25,000

2nd loan; ksh 50,000

3rd loan; ksh 100,000

management fee: 8% this loan has no interest

requirements:

• fill in an application form which is available at any youth fund office
• group registration certificate
• group minutes authorizing and nominating the individual to apply for loan
• copies of identity cards of applicant and guarantors (group members).

• READ MORE ON HOW TO CREATE A SUCCESSFUL BUSINESS ONLINE   

group must have repaid Rausha or Inua loans.the applicant must be running  or planning to start an individual enterprise.the group must have demonstrated discipline and organization.Group members must not exceed 16

other requirements

25% of the membership will be allowed for any round of financing.

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