YOUTH ENTERPRISE DEVELOPMENT FUND YOUTHS LOANS INFO CYES access procedures 1. C-Yes Rausha loan This is a constituency based loan that targets new group projects. It is intended to start off youth who are venturing into business. Features of the loan • Maximum amount of loan is Ksh. 50,000 • The loan attracts no interest but will include 5% management fee • Payment of the loan commences after 3 months grace period • Payment of the loan is made in twelve (12) equal instalments. The applying group must: • Be registered with the relevant government body. • At least 70% youth membership (18-34 years) and the leadership should be 100% youth • Must have a valid group registration certificate • A clearly outlined business project proposal • The group loan applicants submit completed loan proposal forms 2. C-Yes Inua Loan This is a constituency based loan intended to finance RUNNING GROUP projects and therefore for EXPANSION purposes only. Features of the loan • 1st loan maximum amount is Ksh. 100,000 payable in 12 months • 2nd loan is Kshs.200,000 payable in 18 months • 3rd Loan is Kshs. 400 000 payable in 24 months • The loan attracts no interest but will include 5% management fee • Payment of the loan commences after 2 months grace period The applying group must: • Have cleared C-YES Rausha • Have a good credit history from other lending institutions • Have a running business • Be registered with the relevant government body • Group membership must not be less than 10 • The Membership composition must be at least 70% youth (18-34 years), and the leadership 100% youth • Must have a valid group registration certificate • A clearly outlined business project proposal to expand or to diverse 3. C-Yes Special loan This loan targets youth groups carrying out special business projects whose proceeds are generated on periodical or pre-determined irregular periods. Features of the loan • Maximum amount for startups is Ksh. 50,000 payable within 1 year • Maximum amount for those expanding business is Ksh. 100,000 payable in 12 months • 2nd loan is Kshs. 200,000 payable in 18 months • 3rd loan is Kshs. 400,000 payable in 24 months • The loan attracts no interest but will include 5% management fee • The payment of the loan commences after the applicable grace period • Payments are quarterly, half yearly bullet payments. The applying group must: • Be registered with the relevant government body • Group membership must not be less than 10. • The Membership composition must be at least 70% youth (18-34 years), and the leadership 100% youth. • Must have a valid group registration certificate • A clearly outlined business project proposal • The group loan applicants submit completed loan proposal forms. 4. The Agri-Vijana Loan The Youth Enterprise Development Fund is now offering the Agri-Vijana loan targeting young people keen on undertaking agri-business and more specifically, Green house farming. This has been made possible through a partnership with Amiran Kenya Ltd to support young farmers in acquiring green houses and global compliant agricultural inputs that present a shift from traditional farming methods to modernized ones. Amiran Kenya is engaged to supply the double Amiran Farmers Kits (AFKs) which is tailor made to meet the young farmers’ specific needs. Young Kenyans aged 18-34 may apply as individuals or in groups. Inside the Amiran Farmers Kit • Two green houses • Drip irrigation system • Water tank • Farmers sprayer • Gold medal seeds • Nursery set • Fertilizers • Agrochemicals • Plant support system • Health and safety • Group training • Agro support package • Amiran Farmers Kit insurance Loan details Cost of Amiran Farmers Kit Kshs. 358,344 Management Fee 8% Processing fee 2% 10% upfront contribution of the cost of the AFK Grace Period is 4 months and may be adjusted in case a group is dealing with crops that take much longer to mature Loan attracts no interest Mode of repayment: By direct deposit to the YEDF bank accounts quoting the code, MPESA Service Loan collateral • The security of the loan will be: • The financed equipment • Assignment of sales • Personal guarantees by group/individual members Insurance • All group/individual members shall be insured by the Fund against death and permanent disability • Crops shall be insured against crop failures as a result of natural forces Eligibility: the applying group/individual must: • Have access to land, minimum of quarter of an acre. This must be supported by documents of ownership and in absence of the documents, a written consent from the owner allowing the group/individual to use the said land for a minimum of 3 years • Access to reliable and constant source of water. • Knowledge or experience in agriculture • Group/individual must be able to raise to raise the 10% of the investment outlay The applying group must: • Be registered with relevant government Ministry with a minimum of 10 members and a maximum of 15 members • Be 70% youth (18-34 years) • Be led by people who are 34 years and below • Be residents in the constituency of application • Be sponsored/guaranteed by a leader in the society (details of acceptable guarantors indicated in the application form). Interested youth groups should submit the following; • Fully completed application form (available at District Youth Office, Youth Fund Regional Offices) • Group’s registration documents • List of all group members certified by area chief with copies of their identification cards • Proof of access to land • Proof of own contribution (minimum of 10% of investment outlay) • Details and application forms can be obtained from any District Youth Office, Youth Fund Regional Offices or can be downloaded from youthfund.go.ke. The applying individual must submit the following: • Dully filled application forms • Dully filled and signed chattels form. Youth will provide chattels worth at least Kshs. 200,000 • Copy of Id • Copy of PIC certificate • 2 passport photos • 2 dully signed guarantors’ forms. Both guarantors MUST have a source of income, either from business or formal employment. (One of the guarantors will preferable be a parent or the person who provides land to the youth ) Other requirements Youth already in agriculture • Any reasonable evidence of ongoing agricultural endeavor by the applicant e.g. business registration, permits/licenses, agricultural business records, photographs etc • Latest 3 month, certified bank statement (M-Pesa statements may be attached to reinforce the bank statement) Youth with other business seeking diversification: • Proof of other business existence e.g. a registration certificate, business permits, licenses etc • Reasonable business records extracts • Latest 3 months, certified bank statements (M-Pesa statements may be attached to reinforce the bank statements) Salaried youth seeking to invest in Agri-business • Latest 3 months pay slips certified by the employerletter from the employer confirming that the youth is indeed employed. Latest 3 months, certified bank statements EASY-YES 4. E- YES Smart This is a constituency based loan targeting individual enterprises belonging to a group. It targets youth intending to start or expand own businesses. Features of the loan: The product will be available to individuals belonging to a group The group must have paid the C-YES Rausha or C-YES Inua laons Loan Amount Start - up businesses • 1st loan to a member is Kshs. 25,000 payable in 9 months • 2nd loan to a member is Kshs. 50 000 payable in 12 months • 3rd loan to a member is Kshs. 100,000 payable in 18 months • 4th & final borrowing to a member is Kshs. 200,000 payable in 24 months Existing Businesses • 1st Loan to a member is Kshs. 50,000 payable in 9 months • 2nd loan to a member is Kshs. 100,000 payable in 12 months • 3rd loan to a member is Kshs. 150,000 payable in 18 months • 4th & final borrowing to a member is Kshs. 200,000 payable in 24 months There is a grace period of 2 months for the 1st loan, to allow business establishment The loans do not attract any interest, however 8% one off management fee will be charged The applying individual must: • Be a member of and recommended by a group of at least 8 members. • The group must be registered with the relevant government body. • Group Membership must be at least 70% youth (18-34 years), and the leadership 100% youth. • Applicant must be appraised and recommended by the group members, Constituency officers and ultimately the Regional Vetting Committee. • At least 75% of the group members must, on behalf of the group, guarantee the applicant’s loan. • Minutes of the group indicating authority to borrow and guarantee the loan and of the YEDF Regional Committee sanctioning the application must be attached as part of the application documentation • A maximum of 80% of the group members shall borrow at any particular time. Funding for the remaining 20% is after the first group has paid installments for the first two months. • Youth who have serviced their loans satisfactorily can continue to be financed up to a maximum of Kshs. 100,000 even if they get beyond the statutory age of 34 to allow for transition to borrow from banks. • The group must undergo a basic training in Business development and entrepreneurship before applying for the loan facilitated by the Fund. 5. E- YES Swift This is a constituency based loan targeting individual enterprises belonging to a group. It targets youth intending to expand own businesses. The group must not have benefited from C-YES to access this loan Loan Amount • 1st Loan to a member is Kshs. 50,000 payable in 9 months • 2nd loan to a member is Kshs. 100,000 payable in 12 months • 3rd loan to a member is Kshs. 150,000 payable in 18 months • 4th & final borrowing to a member is Kshs. 200,000 payable in 24 months There is a grace period of 2 months for the 1st loan, to allow business establishment The loans do not attract any interest, however 8% one off management fee will be charged The applying individual must: • Be a member of and recommended by a group of at least 8 members. • The group must be registered with the relevant government body. • Closely knit youth group with 70% of the members having running businesses • Group Membership must be at least 70% youth (18-34 years), and the leadership 100% youth. • Applicant must be appraised and recommended by the group members, Constituency officers and ultimately the Regional Vetting Committee. • Minutes of the group indicating authority to borrow and guarantee the loan and of the YEDF Regional Committee sanctioning the application must be attached as part of the application documentation • A maximum of 80% of the group members shall borrow at any particular time. Funding for the remaining 20% is after the first group has paid installments for the first two months. • Youth who have serviced their loans satisfactorily can continue to be financed up to a maximum of Kshs. 100,000 even if they get beyond the statutory age of 34 to allow for transition to borrow from banks. • The group must undergo a basic training in Business development and entrepreneurship before applying for the loan facilitated by the Fund. 6. Direct Lending The Direct lending product targets youth (18-34 years) in existing formal businesses. It is strictly for financing business expansion. This may include working capital financing and income generating assets. Features of direct lending (i) Loan amount The amount of Loan will be a minimum of Kes.100, 000/= and a maximum of Kshs 2,000,000 (Two Million Kenya Shillings). Loans above Kes.100,000/= must be secured by tangible assets. For loans of Kes.100,000/=,security may include chattels, stock and business assets. (ii) Loan term The loan term will vary as follows: • Upto Kes.300,000/= :Maximum of 3 years • Upto Kes.1,000,000/= :Maximum 5 years • Above Kes.1 million/=: Maximum of 6 years. (iii) Pricing • YEDF will charge an interest rate of 8% Flat per annum. • A loan application fee of 1% of the loan amount will be charged upon approval of a loan facility. This will be netted off the loan amount at disbursement. The amount will take care of the pre-disbursement processes, including training. iv) Insurance • All borrowers must be insured against death and permanent disabilities. In addition, all collateral will be covered against fire, death (livestock) and theft. • The borrower will bear the cost of insurance. (iv) Collateral. All loans will be secured, as follow: • Loans of Kes.100,000/= will be secured by flexible security such as chattels, stock, business assets and/or guarantee. • All loans above Kes. 100,000/= will be fully secured by tangible assets such as Financed Capital Assets/Machines, car logbooks, landed property, lien on treasury bills, bonds and shares and undeveloped property . Other forms of securities may be considered. YEDFB will endeavour to observe flexibility in determining appropriate collateral. For the purpose of this requirement, the following security discounting margins will be applicable: a) Chattels: • Business and household goods will be discounted at 50%. • Hypothefication of stock will be at 20% b) Car Logbooks: • Newly registered Vehicles(0-5 yrs) will be discounted at 80% • Used Vehicles (up to 8 years) will be discounted at 70%. c) Lien on treasury bonds/bills and shares: 80% d) Landed Property: • City Urban(Mombasa/Nairobi and its environs):90% • Urban Town(Nakuru, Eldoret, Kisumu, Nyeri, Thika, Malindi):80% • Rural Urban:50% • Undeveloped Property:50% v) Documentation • Youth Business Loan Application Form • Loan appraisal Form • Loan insurance form • Chattels document, where applicable • Guarantee Form where applicable • Loan offer letter • Loan Repayment Schedule • Copy of Title/Relevant proposed security document • Site visit report vi) Mode of disbursement/repayment The Loan proceeds will be disbursed by cheque in the name of the borrower. The loan will be repayable on a monthly basis through cash deposit into the Fund`s account as advised in writing. 7. Buy yourself an incubator! The Youth Enterprise Development Fund is providing youth with egg hatching incubators on credit. Young Kenyans aged 18-34 may apply as individuals or in groups. Specifications of the Incubator • Has a capacity to hatch 528 eggs • Is a fully computerized automatic hatching machine • Has a 95% hatching rate • Automated temperature and humidity control • Is capable of hatching all types of eggs • Occupies little space (0.98 x 0.74 x 1.06M) Benefits of the credit facility • No interest will be charged on loan • Friendlier repayment period and monthly instalments • Warranty: 3 years for spare parts and 2 years on labour • Marketing and linkages facilitation • Training on handling of incubator at no extra cost • Linkage to livestock extension officers/veterinarians Loan details Cost of Incubator Sh. 198,600 Management fee: 5% (payable upfront) Sh. 9,930 Loan amount: Sh. 208,530 Monthly instalment for a period of 36 months Sh. 5,517 (Sh. 198,600÷36 months) Grace period: 3 months Mode of repayment: By direct deposit to the YEDF bank accounts quoting the code. MPESA Service Eligibility: The applying group/individual must: • Have electricity and power back up in case of power outages • In case of a group, 70% of members must be youth and all group officials must be 18-34 years • Individual youth borrower must be 18-34 years. • Show evidence of ability to raise 5% of the cost of the hatchery, to be paid upfront Group applicants must submit: • Duly filled loan application form • Group’s registration documents • Copies of IDs for ALL the members • Duly filled form by guarantors (details of acceptable guarantors is indicated in the application form) • Group minutes authorizing the application. • Evidence of operating a group bank account for 3 months • Extract of recent business records. Individual applicants must submit: • Duly filled loan application form • Copy (ies) of IDs for ALL the owner (s) • Duly filled form by two guarantors(details of acceptable guarantors is indicated in the application form) • Recent bank statement/Mpesa statement and recent business records • Recent certified copies of bank statement for individual borrowers not engaged in any form of business and salaried individuals Those already engaging in poultry production as well as those who are keen on undertaking the business are encouraged to apply.
Posted on: Wed, 24 Jul 2013 12:04:01 +0000
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