youth fund loans for your Agribusiness startup

AGRIVIJANA LOAN

INSIDE THE SSA FARMERS KIT

•             Drip irrigation system

•             1000 liters Water tank (Stackable)

•             Famer’s sprayer kit for 1 st season

•             Sufficient nursery set

•             Fertilizers

•             Agrochemicals

•             Plant support system

•             Health and safety-protective gear

•             Group/Individual Training

•             Agro support for entire loan period

•             SSA Farmer’s Kit insurance

LOAN DETAILS

Cost of SSA Farmer’s Kit:             

Fixed Model green house 8x30M with open family drip system 90M        Kshs. 430,000

Fixed Model green house 8x24M with open family drip system 90M        Kshs. 399,000

Fixed Model green house 8x15M with open family drip system 90M        Kshs. 357,344

•             10% deposit must be paid to youth fund account once the loan has been approved

•             Instalments will be inclusive of 10% management fee

PAYMENT

Grace period: Four months

(The group/applicant will enjoy 4months grace period before start paying the facility)

Mode of payment: By direct deposit to the YEDF bank account quoting the code.

Loan Collateral: The security of the loan will be:

•             The financed equipment

•             Personal guarantees by group/individual members

•             Household items worth not less than Kshs.200,000

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 is an added advantage.

•             Group/individual must be able to raise the 10% of the investment outlay.

APPLYING

The applying group must:

•             Be registered with relevant Government Ministry.

•             Not less than 8 members per group.

•             Be 70% youth (18-34 years)

•             Group leaders must be between 18-34 years.

•             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 the gender office 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

For individual applicant, the loan is available to 3 categories of youth:

•             Those already doing Agriculture

•             Those running other business salaried youth

The applying individual must submit the following:

•             Dully filled application forms

•             Dully filled and signed chattels forms. Youth will provide household items worth at least Ksh.200,000.

•             Copy of I.D

•             Copy of PIN Certificate

•             2 coloured passport size 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 preferably be a parent or the person who provides land to the youth)

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. 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 statement).

Salaried youth seeking to invest in Agri-business:

•             Latest 3 months pay slips certified by the employer letter from the employer confirming that the youth is indeed employed.

•             Latest 3 months, certified bank statement

BID BOND/LPO FINANCING

BID BOND

The features of the bid bond:

Maximum amount available for bid bond is Kshs. 2 Million

A commission fee of Kshs. 1,000 will be charged

No security is required

What you need to qualify for the bid bond:

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 (If any)

The documents you are required to submit:

Application form

Tender documents

Guarantee forma (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

Valid CR12 for limited companies

LOAN DETAILS

Mode of Loan Disbursement:

In the case where the LPO is for consumables the loan shall be availed to the customer’s account via EFT/RTGS/CHEQUE. Where the LPO is for the capital goods, YEDF shall pay directly to the supplier.

Repayment period:The loan shall be paid within 90 days.

Security:

For amounts of Kshs. 1 million and below a letter of undertaking from the procuring entity will serve as security

For amounts above Kshs 1 million the following will form part of security

Letter of undertaking

Guarantees

Landed property

Motor Vehicle

LPO /LSO FINANCING

The features of the LPO financing loan:

The maximum amount that one can get in one loan is KShs 20 million.

YEDF will finance a maximum of 70% of the LPO amount

Only LPOs/LSOs from government Ministries and agencies will be financed

What you need to qualify for the LPO loan:

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 — KCB

Submit completed loan application forms.

The documents you are required to submit:

Copy of LPO/LSO being financed.

Two most recent pass port affixed at the right corner of application (for each director)

Copy of security document

Resolution to borrow in case of a Limited Company capturing amount, purpose,payment period and security offered (must be sealed & signed by all directors)

Customer bank account details form (KCB)

Copy of business registration certificate/certificate of incorporation

Valid CR12 for limited companies

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

AGPO Certificate

OTHER CONDITIONS

The asset being offered as security must be valued and customer will incur the valuation expenses.

In case the borrower wishes to use land as security he/she will pay the legal charges and any other cost.

Commission  Fee: 6.5% of the principal amount for the first 90 days (inclusive of the insurance). For the subsequent period, the loan will attract an interest of 1.5%  per month.

INCUBATOR LOAN

Support youth in poultry farming

ABOUT THE LOAN

Provision of egg hatching incubators on credit. Youth may apply as individuals or in in groups

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

Agrochemicals

Occupies little space (0.98 x 0.74 x 1.06M)

LOAN DETAILS

Cost of SSA Farmer’s Kit:             

Cost of Incubator             Kshs. 198,600

Management fee: 5%    Kshs. 9,930

Loan Amount     Kshs. 208, 530

Monthly installment for a period of 36 months   Kshs. 5,517 (Kshs. 198, 600/36 months)

BENEFITS OF THE INCUBATOR

No interest will be charged on loan

Friendlier repayment period and monthly installments

Warranty: 3 years for spare parts and 2 years on labour

Marketing and linkages

Training on handling of incubator at no extra cost

Linkage to livestock extension officers/veterinaries

FULLY COMPUTERISED WITH A CAPACITY TO HATCH 528 EGGS AT A 95% HATCHING RATE!

Grace period: 3 Months

Mode of Payment:

By direct deposit to the YEDF bank accounts quoting the code.

MPESA Service

APPLYING

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.

Show evidence of ability to raise 5% the cost of the hatchery, to be paid upfront.

Group applicants must submit:

Dully filled loan application form.

Group’s registration documents

Copies of IDs for ALL the members.

Dully 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:

Dully filled loan application form

Copy (ies) of IDs for all the owner (s)

Dully filled form by two guarantors (details of acceptable guarantors is indicated in the application form)

Recent bank statements/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.

The applying group must:

Be registered with relevant Government Ministry.

Not less than 8 members per group.

Be 70% youth (18-34 years)

Group leaders must be between 18-34 years.

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 the gender office 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

For individual applicant, the loan is available to 3 categories of youth:

Those already doing Agriculture

Those running other business salaried youth

The applying individual must submit the following:

Dully filled application forms

Dully filled and signed chattels forms. Youth will provide household items worth at least Ksh.200,000.

Copy of I.D

Copy of PIN Certificate

2 coloured passport size 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 preferably be a parent or the person who provides land to the youth)

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. 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 statement).

Salaried youth seeking to invest in Agri-business:

Latest 3 months pay slips certified by the employer letter from the employer confirming that the youth is indeed employed.

Latest 3 months, certified bank statement

CONSTITUENCY BASED LOANS

Support young people start income generating activities at the constituency level

ABOUT THE LOAN

The Youth Enterprise Development Fund provides the following loans to groups and individuals at the constituency level:

A. GROUP LOANS

1. RAUSHA

Loans are payable within 4 months (quarterly). Appraisal of this loan targets start up group business only.

Loan Details       

Loan amount: Maximum              Kshs. 50,000

Management Fee            5% (this loan is interest free)

Repayment period:         12 months

Grace period:    3 monthsRequirements:

Fill an application form which is available at any Youth Fund Office

Valid Registration Certificate and certified membership list

Copies of identity cards for group members

Group minutes authorizing the loan application

The loan amount will be recommended based on the business proposal as seen in the application form, and appraisal of group’s ability to manage the funds

2. INUA

This loan is for Business expansion purposes only.

Loan Details       

1 st loan: Maximum Kshs. 100,000            Payable in 12 months

2 nd Loan: Maximum Kshs. 200,000          Payable in 18 months

3 rd Loan: Maximum Kshs. 500, 000          Payable in 24 months

Management fee:           5%. This loan is interest freeRequirements:

Group must have borrowed and repaid Rausha loan. If not then the group must:

Have an existing and well running business enterprise(s) run by the group.

 Have a good credit history with Youth Fund or other lending institutions\organizations.

Fill an application form which is available at any Youth Fund office

Valid Registration certificate and membership list

Copies of identity cards of group members

Group minutes authorizing the loan application

A copy of a current business license or proof of existence as may be agreed

A copy of a 3 months bank statement

Recent business records.

Security

Chattels (pledge of personal and business assets)

Stocks

Charge over or simple deposit of ownership documents of assets directly financed by YEDF e.g logbooks.

However, this will depend on a type of business activity that the group engages in.

3. SPECIAL

This is a new loan targeting special business projects across various economic sectors. These include:

Agricultural production-horticulture

Livestock trading or fattening

Other seasonal/periodical businesses where the clients cannot be able to repay their loans on a monthly basis.

Amounts: start up loan will be Kshs. 50,000 Maximum. Expansion/continuing business loans for new and continuing groups will be as follows:

Loan Details       

1 st loan: Maximum Kshs. 100,000            Payable in 12 months

2 nd Loan: Maximum Kshs. 200,000          Payable in 18 months

3 rd Loan: Maximum Kshs. 500, 000          Payable in 24 months

Management fee:           5%. This loan is interest freeRequirements:

Fill an application form which is available at any Youth Fund office

Valid Registration certificate

Copies of identity cards of group members

Group minutes authorizing the loan application

Copies of supply contracts (where applicable)

Special feature: longer grace periods and periodical (quarterly, half year or bullet) repayment will be applied depending on project maturation.

Horticulture project loans will be based on the nature of the business and the business needs of the borrowers.

B. INDIVIDUAL LOANS

1. SMART

Smart provides loans to individuals who are members of groups which have repaid their group loans. It empowers individuals within groups to start or expand their personal businesses as per the guaranteed scale below:

Loan Details       

1st loan                Kshs. 25,000

2nd loan;             Kshs. 50,000

3rd loan:              Kshs 100,000

4th loan:              Kshs 200,000

Management fee:           8% This loan is interest freeRequirements:

Fill an application form which is available at any Youth Fund Office

Group registration certificate

Group minutes authorizing and nominating the individual to apply for the loan

Copies of identity cards of applicant and guarantors (Group members)

Group must have repaid Rausha or Inua loans. The applicant must be running or planning to start an individual enterprise.

The group must have demonstrated discipline and organization.

Group members must not exceed 16

Other Requirements

80% of the membership will be allowed 1 st round of financing. If he repayment of the 1 st is good then 20% will be financed.

A group will nominate beneficiaries at every level and record in group minutes

The group will sign an undertaking to guarantee loans advanced to its members.

2. SWIFT

SWIFT will allow individual members of new youth groups which may not have received Rausha, Inua or Special.

Amounts            

1st loan                Kshs. 25,000

2nd loan;             Kshs. 50,000

3rd loan:              Kshs 100,000

4th loan:              Kshs 200,000Requirements:

Fill an application form which is available at any Youth Fund Office

Group registration certificate

Group minutes authorizing and nominating the individual to apply for the loan

Copies of identity cards of applicant and guarantors (Group members)

70% of the members must have individual businesses while the remaining 30% must have plans to start

In addition the individual; applicant must provide :

A certified copy of a bank statement (3 months)

Copy of current business records.