CenteAgricultural Youth Loans
Product Features
- Interest charged on declining balance.
- Minimum amount of UShs. 100,000 and maximum amount of UShs. 5,000,000 for individuals.
- Minimum loan amount of UShs. 500,000 and maximum amount of UShs. 25,000,000 for companies and partnerships.
- Maximum loan period of 4 years for development purposes and 2 years for working capital purposes.
- Repayment through regular and equal monthly, bi-monthly, quarterly, or staggered instalments (including principal and interest) based on the nature of business and cash flow.
- Grace period up to a maximum period 12 months applicable on a case-by-case basis, basing on the cash flows.
Benefits
- Helps youth with capital to improve their agribusinesses, thus creating employment.
- Less stringent terms and conditions than the other normal loans.
- Moderately low interest rates.
- Easy loan processing.
Requirements
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- Must have or open an account with Centenary Bank (Current or Savings account).
- Completed loan application.
- Payment of loan processing fee.
- Trading license.
- Existing enterprise, at least 3 months old.
- 20% contribution on the budget for clients involved in production.
- By-Law for VSLA or memorandum & Article of Association and registration Certificate for company
- Simple business plan.
Additional features based on each type.
(a) Cente Youth Loans:
- Application fee of UShs. 20,000.
- Age of 18 – 35 years old.
- Maximum amount of UShs 5 million when secured by Chattels, Motorcycle Logbook and 2 personal guarantors for individual and Ushs 25 million for VSLAs, Cooperatives, company with more than 5 youth or 2/3 of the members are youth.
- Ushs 5 million <= UShs. 50 million secured with land or special scheme fund or FDR for individual and UShs. 25 million <= UShs. 50 million for VSLAs, Cooperatives and Companies.
(b) KCCA Youth Loans:
- Application fee: None (zero).
- Age of 18 – 35 years old.
- Operating business and residing within KCCA.
- Recommendation letter from LC1 Chairperson and Village Youth Chairperson
- At least 30% of the amount required for purchase of business assets.
- First time borrower; up to Ushs 2M for individual and Ushs .10 million for non-individual borrower
(c) Youth Venture Capital Fund Loans:
- Age of 18 – 30 years old.
- Application fee: None (zero)
- Recommendation letter from LC 1 Chairperson and Subcounty Chief / Assistant Town Clerk
- At least 10% of the amount required for purchase of business assets.
Additional Requirements based on type of legal entity:
(a) Individuals:
- Proof of existence of a business
- Proof of identity like birth certificate, national ID, passport with National ID Number
- Guarantors who must be persons of good repute within the local community
- Original National ID (NIN)
(b) Companies:
- Certificate of Incorporation
- Certified Memorandum and Articles of Association.
- Trading license.
- Original National ID (NIN) of the Directors.
- Shareholder’s personal guarantees.
(c) Partnerships:
- Partnership Deed.
- Original National ID (NIN) of the Partners.
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