Daraja Microfinance Bank, licensed by Kenya's Central Bank, targets MSMEs and salaried individuals in areas like Dagoretti with collateral-free loans via check-off systems. Below is an overview table of key loan products based on available microfinance practices in Kenya, adapted for Daraja's focus.
| Bank | Loan Name | Eligibility Criteria | Interest Rates/Fees |
|---|---|---|---|
| Daraja Microfinance Bank | Business Expansion Loan | Business operating 1+ year, regular cash flow, banked 3+ months with good conduct | 18% p.a., security required (title deeds, logbooks, assets) |
| Daraja Microfinance Bank | Salaried Check-off Loan | Salaried employees, steady payroll, no collateral needed | 1.0-1.5% per month reducing balance |
| Daraja Microfinance Bank | Micro-Enterprise Loan | Households/MSMEs with income < KES 3M annually, one loan per household | RBLR +4-5%, max KES 2L, nil processing up to KES 50k |
| Daraja Microfinance Bank | Emergency Daraja Loan | Active members, quick access via app/USSD, repay in 30 days | 6% one-off upfront |
1. Business Expansion Loan
This loan supports established businesspeople expanding profitable enterprises, mirroring products like Kingdom Bank's Daraja Loan. Eligibility requires at least one year in operation, verifiable cash flow (agri, schools, rentals considered), and three months banking history with satisfactory conduct. Loan limits range from KES 50,000 to 3,000,000 at 18% interest, secured by title deeds, vehicle logbooks, household items, or stock. Repayment aligns with business cycles, often 12-36 months, promoting growth for Nairobi MSMEs.
2. Salaried Check-off Loan
Daraja emphasizes security-free loans for salaried workers, deducted via employer check-off. Applicants need stable employment, recent payslips (3-6 months), and no existing defaults; guarantors may apply for higher limits up to 4x deposits. Interest at 1.0-1.5% monthly on reducing balance suits quick personal needs, with 36-month terms standard. No extra documents beyond payslips streamline access, ideal for Nairobi professionals facing cash shortfalls.
3. Micro-Enterprise Loan
Targeted at low-income households (annual < KES 3M equivalent), this collateral-free product limits one loan per household. Monthly obligations cap at 50% of income; end-use flexible (business, personal). Max limit KES 200,000 repayable in 36 months, with rates linked to Repo-Based Lending Rate (RBLR +4-5%). Processing free up to KES 50,000, TAT 7 days; documents include ID, address proof, income verification (payslips/ITR). Supports Daraja's MSME mission, over 90% of Kenyan businesses.
4. Emergency Daraja Loan
A rapid-access product for active clients via USSD/app, max KES 5,000 repayable in 30 days. Open to all members; defaults deduct from deposits, barring access for 6 months. 6% one-off interest recovered upfront via Paybill/FOSA; member-driven repayments. Fits Daraja's quick-disposal ethos, aiding urgent needs without collateral, common in Kenyan SACCO/microfinance hybrids.
Daraja Microfinance Bank's loan portfolio emphasizes accessibility for underserved Nairobi segments like Dagoretti MSMEs and salaried workers. As Kenya's tenth licensed MFB, it fills gaps where traditional banks overlook small borrowers, contributing to GDP via 50%+ MSME employment. Products prioritize low barriers—collateral optional, minimal docs—while enforcing prudent limits like 50% debt-to-income ratios.
Business Expansion Loan stands out for scale, up to KES 3M, but demands proven viability unlike unsecured salaried options. Rates at 18% reflect secured risk, competitive against commercial banks' 13-20% for SMEs. Salaried Check-off Loans shine in speed, bypassing asset valuation; 1.5% monthly (18% effective annual) beats informal lenders' 20%+ weekly gouging.
Micro-Enterprise Loans echo national microfinance norms, RBLR-linked (currently ~12-13% base +4-5% spread) for affordability. Nil charges under KES 50k and no prepayment penalties encourage uptake; household focus prevents over-indebtedness. Emergency variants provide payday-bridge relief, with upfront fees ensuring viability despite micro-limits.
Applying involves basic proofs: national ID, KRAs PIN, payslips/bank statements (3-6 months), business licenses for enterprises. Guarantors (2-3) common; FICO/CICI credit checks standard. Daraja's check-off integration accelerates salaried approvals to days, versus weeks elsewhere.
Rates vary by risk: secured business loans higher (18%) than unsecured micro (RBLR+), but all below market usury. Repayment flexibility—36 months standard, balloon options for cash-flow businesses—reduces defaults. Prepayment nil fees aid discipline; reviews cost KES 250+ for larger sums.
In Nairobi's dynamic economy, Daraja aids hustlers scaling mitumba stalls or repair shops. MSMEs, 90%+ private firms, struggle with collateral; Daraja's asset-light model unlocks capital. Salaried loans support urban lifestyles amid rising costs (inflation ~5-7% 2026).
Comparisons: Versus Faulu/Kenya Women MFBs, Daraja's Dagoretti focus offers localized service; rates align industry-wide. SACCO "Daraja" loans (e.g., Shirika) cheaper short-term but deposit-tied. Kingdom Bank's version security-heavy, suiting expansions.
Risks include over-borrowing; cap at 50% income vital. Defaults trigger asset seizure or blacklisting via CRBs. Yet, quick TAT (7 days micro) and no-margin entry beat chamas/lenders.
Future outlook: With 2026 digital push, app/USSD enhancements likely expand emergency access. Regulatory caps on rates (CBK Microfinance Act) ensure sustainability. For Nairobi borrowers, Daraja bridges formal finance gaps effectively.
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