Individual and project growth requires money. The higher the capital on investment, the higher the returns, hence the faster the growth. The major source of income for small and medium enterprises is loans. Entrepreneurs should choose their lending agencies wisely to avoid running on losses or getting lower returns on investment.
Outlined below are the banking institutions that their interest rates are pocket friendly to upcoming and existing entrepreneurs.
Equity Bank Limited
For 10 plus years, equity bank has controlled the banking sector by commanding membership from the SME markets. This is certainly because of its day today innovations in the lending sector. Currently, it offers the cheapest interest rates on all types of loans.
Equity bank has branches and agents in all the towns in Kenya, with Nairobi leading with over 10 branches and countless agents. It has also equipped its clients with equitel lines to make transaction easier even in places with poor accessibility.
Standard Chartered Bank Limited
Stan Chart bank started operating 118 years ago and currently has almost 140 branches in the entire country. They are the major stake holders in the beyond zero campaigns, always marketing their simple but weighty slogan which encourages clients that to see is to believe.
For young and upcoming businesses, standard chartered offers the second cheapest personal and SME loans.
Kenya Commercial Bank Limited
KCB is the third cheapest bank in Kenya. Its loan services are very flexible and SMEs can repay for up to 3 years. Depending on one’s borrowing ability, Kenya commercial bank can offer a maximum of 50,000,000 shillings.
Among the charities KCB engages in are KCB marathon and ‘I can invest challenges’. It has branches in all towns in Kenya and many agents.
African Banking Corporation Limited
Created in 1986, African banking cooperation has about 10 branches in Kenya. Nairobi leads with four branches while Mombasa, Lamu, Kisumu, Nakuru, Eldoret and Meru all have a branch each.
Their unique SME lending services attract even persons who have never thought of investing. They include: capital for increasing stock, running capital for businesses, capital expanding assets, capital for purchasing assets like land / buildings, capital for purchasing tools or equipment, among others.
Commercial Bank of Africa Limited
Commercial bank of Africa’s lending niche is wide and include; asset financing, termly loans, liquidity among others.
They are the pioneers of M-shwari , an idea that has marketed them among their clients.
NIC Bank Limited
It was initially called premier asset and financing bank. They continuously customize their lending services to satisfy the demands of different levels of clients and businesses. They have categorized the enterprise sectors into 3: lower category, middle category and upper category and trust me, all the categories enjoy customized services without straining their enterprises.
Interest on their personal loans is also very impressive.
Paramount Universal Bank Limited
The paramount bank started operating in 1993 and has escalated very fast. In the entire country, the bank is among the top 30 largest banks.
Their financing options are very flexible and include but not limited to; bank overdrafts, asset financing services, business loans, hire purchase services among others. They also offer personal loans at less than 10%.
Family Bank Limited
The eighth cheapest small and medium enterprise financial option in Kenya is Family Bank. Its offers include wezesha loan, check discounts, vijanaa boost among others
Recently, they introduced pesa pap, an initiative that enables entrepreneurs to access loans via their mobile phones.
Jamii Bora Bank Limited
Entrepreneurs planning to borrow from Jamii bora must have resided in their current residence for not less than one year. Among their lending services are institution banking, agribusiness banking, SME banking among others, out of their three types of loans.
Dubai Bank Limited
Has been in existence in Kenya for the last 38 years, during which it has devised some of the most pocket friendly loans for its clients.
Through their m-sasa mobile phone service, they can be reached even in places that are very far from their branches. Its personal loans are below 13%.