Only credit products that are approved by the Bank will be offered to target Customers. There shall be a product manual governing each product.
This is a product designed to service the needs of Customers who may wish to purchase some specific assets. The Assets may include motor vehicles, equipment, plant and machinery. Second hand vehicles should not exceed 8 years of age and second hand machinery should not exceed 5 years of age at the time of borrowing. Combination of age and tenor should not exceed 9 years’ subject to a maximum tenor of 60 months e.g. for a new or two-year old vehicle, the loan tenor will be a maximum of 48 months, while for an eight-year old vehicle, the maximum tenor will be 12 months.
The Bank will not finance certain models of vehicles or assets whose resale-ability may prove difficult in the event of default as advised by the valuers or determined by the Bank. The Bank finances up to 80% of the price for new motor vehicles and up to a maximum of 95% of the price for school buses. For second hand and imported vehicles the Bank finances up to 70% of the value or price whichever is lower.
Scheme loans are also available at preferential terms as agreed between the two institutions.
This loan product can be used to finance working capital and expenses of capital nature e.g. premises, machinery, motor vehicles etc within the SME sector.
Overdraft facilities should only be offered to meet working capital needs and for funding short term timing differences. They should not be offered for Capital Expenditure or where it is obvious that the funding requirements are of a long-term nature.
Available for the financing of local purchases/services orders from reputable organizations. Reputable organizations will be those that have been pre-vetted by the Bank and established as ‘reputable’. Repayment period will be restricted to a maximum of the Customer's trading cycle. Amount of the facility limited to 60% of the cost of LPO/LSO. Customer must demonstrate technical capacity to perform the order or contract and must have banked with the Bank for a period of 6 months to qualify. Customers accessing the facility will be required to provide security and all the facilities must be adequately secured.
This facility is available for discounting of invoices from reputable organizations. Reputable organizations will be those that have been pre-vetted by the Bank and established as ‘reputable’. The facility is repayable in 60 days. The Bank shall discount up to a maximum of 60% of the invoice amount and the customer must have banked with the Bank for a period of 6 months to qualify. Customers accessing the facility for the first time must provide security and any financing of amounts more than Kshs. 500,000 must be adequately secured.
The Bank on behalf of Customers issues these to third parties as a form of surety. These are availed in the form of Guarantees to Suppliers, Bid Bonds, Performance Bonds and Advance payment guarantees. Usually availed for a maximum period of 12 months and must be reviewed and renewed at the end of the period. Open ended guarantees will be avoided except where guarantees are in favour of government departments/quasi government entities provided it is supported by underlying contracts or performance and is not expected to exceed 2 years. Such will be reviewed annually to establish customer’s continued ability to perform obligations guaranteed
Bid bonds are low risk in nature and the Bank at any one time may advance unsecured bid bonds aggregating to a maximum of Kshs. 1,000,000 to SME Customers and Kshs. 5,000,000 to corporate Customers based on account conduct and evidence of capacity to perform the obligations guaranteed. All other guarantees apart from bid bonds should be fully secured.
These are availed to support Customers to import goods or services. Such Customers must demonstrate that they have capacity to pay the facility when it matures from their resources or an existing overdraft/loan facility. Commissions on LCs will be based on the Bank’s tariff and any concessions must be approved at the requisite level.
Personal loans will only be extended to employees whose employers are reputable institutions of good standing and/ or where the bank has check off facilities with the employe.
This is a product designed to service the needs of Customers who may wish to:
Landed property secured by a mortgage or charge: |
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| Lease hold properties, must have a remaining lease period of at least 25 years at loan maturity. | |
This is a loan for developments (either for commercial or residential use) for sale to the final owners upon completion. The construction loan under this approach is tailored to be disbursed alongside project implementation mainly upon presentation of certificates of works completed. During the construction period, only the interest is payable. The principal loan amount disbursed shall not be payable during the construction period.
This loan is available for developers to construct a commercial building for own use or multiple units for rental income. Similarly, as in the case of built-to-sale, the loan is structured such that principal repayment falls due upon start of commercial operations i.e. completion and occupation of the lettable space/residential units over a specified and agreed period. The construction loan is converted upon start of commercial operations into a mortgage and is repayable on the applicable terms.
This product is designed to assist our Customers pay for their insurance premiums. The Bank understands the strain that may be caused by paying for insurance premiums in lump sum. Toaddress this need, our Customers can now pay their premiums in monthly instalments at very affordable rates.
When you get your paycheck, take a percentage -- between 10 percent and 30 percent -- and put that away. You'll be rich enough to be financially independent within a short period of time.
Consolidated Bank is regulated by The Central Bank of Kenya.
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