Group Loans

What is a group loan?

Loans offered to more than 2 people for a common purpose who secure each other

What is the target market?

Rural farmers, Flea markets, Small business enterprises, Projects

What is the minimum number and maximum number of group members?             

Ranges between 2-20 individuals depending with trade. The groups should be manageable.

What are the loan requirements? 

Constitution, Minutes of meeting on resolution to borrow, Guarantor for each individual, security pledge for all members.

Does one get total amount applied? 

Upfront charges apply for all Microplan loan products.

How are funds disbursed? 

Into chosen account for group members or direct to partner account.

Does the product have grace period? 

It can be negotiated depending with group trade however interest charge is not forgone.

What is the repayment period?

1 – 12months.

BUSINESS LOANS   

Who qualifies for a business loan?

Micro enterprises, Order financing, small scale businesses

What are the requirements for Micro enterprise loans?
  • Write up on when the business started, business operations customers, suppliers , current monthly turnovers etc
  • Current financial institutions where you have arrangements if any
  • Profile of Directors/ Management team (experience qualifications etc.)
  • Current bankers – Plus 3 months’ bank statement
  • Cashflow projections for 2021
  • Financial statements for the past 3 years or for 2021(Management accounts)
  • Full company documents CR14, memos and articles of association, director’s ids, proof of residence
  • Tax Clearance certificate

What are the requirements for order financing?

  • Letter/s of undertaking (irrevocable) from customers stating that all payments to be directed to FBC bank account. (The letter should quote the following info: FBC Bank Acc number, Branch, Branch code and company account name
  • 6 months’ bank statements
  • Original copies of orders to be financed and proforma invoices from suppliers
  • Financial statements, cashflow projection. All company registration documents
  • Collateral (Title deeds, shares, investments)
  • Copies of I.DS’s, proof of residence for directors
  • Company profile 
What are the disbursement options under Business loans? 

FBC account only. Business should open an FBC corporate account.

What is the loan amount limits?

Determined by business worthy and ability to pay within the stipulated period.

What is the maximum loan tenure?   
  • 6 months for new business
  • Up to 12 months for repeat business.