Grants & Funding

NEW YOUTH LOAN PRODUCT IN KENYA.

NEW YOUTH LOAN PRODUCT IN KENYA!

Bid Bond and LPO/LSO Financing
The Youth Enterprise Development Fund is
now offering Bid bond and Local Purchase
Order (LPO)/Local Service Order (LSO)
financing to young people engaging in
business.
This loan product targets youth aged
18-34
participating in tenders and are required
to
give bid bonds together with the tender
documents as well as those who require to
service LPOs/LSOs.
The loan products are available to
individuals, registered groups,
partnerships
and companies owned and run by the
youth.
Product Features are as follows
Bid Bond

To be eligible the applicant must:
• Be registered with the relevant
government
body.
• For business entities membership
composition must be at least 70% youth
(18-34 years).
• Submit completed application form.
• Letter of request from the applicant
• Tender advert
• Guarantee format (if any)
Loan amount: Maximum amount available
for
this bond is Ksh. 2 Million
Security: No security is required
Commission Fee: A commission fee of
Kshs.
1,000 will be charged
Applicants must submit;-
• Application form
• Tender documents
• Guarantee format (if any)
• Id copy of the applicant/ Directors in
case
of a limited company
• Certificate of incorporation or business
registration certificate
• Articles and Memorandum in case of
limited
companies
• Valid compliance certificate
• Certified 3 months bank statements
• AGPO certificate
LPO /LSO Financing
To be eligible the applicant must:
• Be registered with the relevant
government
body.
• For companies, groups and partnerships
membership composition must be at least
70% youth (18-34 years).
• Have a valid LPO/LSOs
• Have an undertaking by the procuring
entity to pay the LPO proceeds in favour
of
Youth Enterprise Development Fund
• Have account details
• Submit completed loan application
forms.
Loan Amount: The maximum amount
available for this loan is KShs 20 milliom
per
individual borrowing
Amount Financed: Not more than 70% of
the
LPO amount
LPOs/LSOs Financed: From the government
Ministries, Parastatals, Government
agencies,
Blue chip Companies County Government
and
Constitutional commissions.

Mode of Loan Disbursement
Mode 1. Where the LPO is meant for
Consumables the funds shall be availed to
the customer’s account via EFT/RTGS/
CHEQUE.
Mode 2. Where the LPO is meant for the
capital goods, YEDF shall pay direct to the
supplier.
Repayment period: The loan shall be paid
within 90 days unless otherwise discussed
with the Fund and approved.
Security
• Amount below Kshs 500,000 – letter of
undertaking
• Amount above Kshs 500,000 – the
following
will form part of security
• Letter of undertaking
• Guarantees
• Landed property
• Motor Vehicle
Other conditions:
The asset being offered as security must be
valued and customer will incur the
expenses.
In case of land the customer will take care
of
the legal charge and any other cost
Interest rate: 1.5 % per month on the
amount
Processing Fee: 2% of the principal
amount
(inclusive of the insurance)
Applicants must submit;-
• Copy of LPO/LSO being financed
• Two most recent pass port affixed at the
right corner of application
• Copy of security document
• Resolution to borrow in case of a Limited
Company capturing amount, purpose,
payment period and security offered (must
be sealed)
• Customer account details form
• Copy of business registration certificate/
certificate of incorporation
• Articles and Memorandum of Association
• Copies of id and pin for all borrowers
• Pin certificate for the Company in case
of a
Limited Company
• Tax Compliance certificate
• Relevant business licenses
• Business records and copy of LPOs
previously serviced
• Certified 6 months bank statement
• Certified loan statement if any
• Audited report accounts for the last 2
years
in case of the Limited Company
Application forms can be obtained from the
Headquarters offices located at 12th floor,
National Bank Building, Harambee Avenue.
They can also be downloaded from the
website: www.youthfund.go.ke
For more information kindly contact :
Tel: 020 221 167 1/2, 020 221 167 5

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close