Faulu Microfinance Bank Loans, Eligibility & Rates

Faulu Microfinance Bank offers a range of loans tailored for individuals, groups, SMEs, and agribusiness in Kenya, focusing on accessibility and quick processing. Below is a summary table of key loan products, eligibility criteria, and indicative rates based on available data.

1. Check-Off Loans

Check-Off Loans are multi-purpose products for salaried employees in sectors like teaching (TSC), civil service, disciplined forces, county governments, parastatals, and select corporates. Eligibility requires a stable salary with employer payroll deduction agreement, minimum salary thresholds (often Ksh 10,000 monthly), and good credit history with Faulu. Loans range from Ksh 10,000 to Ksh 3,000,000 over up to 84 months, with top-up options after partial repayment. Interest rates are competitive at around 18-34% per annum, featuring quick processing—often within days—and flexible use for emergencies, education, or assets.

These loans stand out for their security via direct deductions, reducing default risk and ensuring affordability. Applicants need national ID, payslips (3 months), employer letter, and Faulu account. Top-ups are available from the second cycle at 75% repayment, making it ideal for ongoing needs like school fees or home improvements in Nairobi's salaried class.​

2. Corporate Check-Off Loans

Designed for salaried customers under specific Memoranda of Understanding (MOUs) between Faulu and institutions, these loans mirror standard check-offs but with predefined terms. Eligibility ties to MOU-partnered employers, requiring salary processing through Faulu and clean CRB status. Amounts and tenures align with Check-Offs (up to Ksh 3M, 84 months), with rates at competitive levels similar to 18-34%. Benefits include streamlined approval due to pre-vetted partnerships.

This product suits corporate employees in parastatals or large firms, offering multi-purpose funding without extensive collateral. Processing is faster, often same-day for compliant applicants, supporting needs like vehicle purchase or business side-hustles common among Kenyan professionals.​

3. Faulu Micro Loan

Targeted at small businesses and entrepreneurs, the Faulu Micro Loan covers working capital, LPO financing, and emergencies. Eligibility includes active business (6+ months), Faulu account with transactions, guarantors or collateral, and positive CRB. Loan sizes span Ksh 1M to Ksh 3M over 18-36 months, with refinancing from the second cycle at 75% repayment. Rates hover at 18-34%, with flexible security options.

Ideal for Nairobi traders or micro-entrepreneurs, it features quick appraisal and disbursement. Requirements: business registration, bank statements (6 months), and physical verification. This empowers scaling, like stocking inventory for retail shops in Eastlands.​

4. Faulu Chama Loan

This loan serves formal/informal groups like investment clubs, merry-go-rounds, and welfare associations operating Faulu Chama accounts. Groups must have 10+ active members, 6+ months savings history, registered constitution, and meeting Faulu's group dynamics appraisal. Limits reach Ksh 350M over 72 months at ~9.5-18% interest, used for group investments or emergencies.

It's popular in Kenyan communities for table banking, with features like joint liability and training. Applications involve group minutes, officer IDs, and site visits, fostering financial inclusion for Nairobi's chama networks.​

5. Pesa Chap Chap

A short-term mobile emergency loan for Faulu account holders, disbursed instantly via USSD or app. Eligibility: active Faulu mobile account, prior transactions, and no negative CRB. Amounts from Ksh 300 to 10,000 repayable in 10 days, with higher short-term rates.

Perfect for urgent needs like transport in Nairobi traffic, it requires *USSD dialing and PIN, emphasizing speed over size. Overuse risks blacklisting, but it's a lifeline for daily hustlers.​

6. Biashara SME Loans

Biashara SME Loans help small/medium enterprises scale via working capital or asset financing. Eligibility: registered business (1+ year), turnover proof, collateral/guarantors, and Faulu relationship. Flexible amounts and terms, rates competitive at 18%+, with LPO financing options.

Suited for Nairobi's SMEs in retail or services, it includes training. Apply with licenses, financials, and valuation reports for growth funding.​

7. Asset Finance

For acquiring assets like cars, trucks, machinery, or insurance premiums, targeting SMEs/individuals. Requires asset quotation, down payment (10-20%), and collateral like logbooks. Up to 60 months at ~9.5% interest, with refinancing.

Common for matatus or generators in Kenya, it eases ownership. Processing involves valuation and insurance tie-ups.​

8. Faulu Landlord Loan

Aimed at landlords with stable rental income from developed properties in cities/counties. Eligibility: title deeds, rent agreements, and Faulu account. Flexible amounts/terms for business alleviation, competitive rates.​

Ideal for Nairobi property owners expanding portfolios, it uses rentals as security. Needs valuation and tenant proofs.​

9. Bid Bonds & Guarantees

For suppliers/contractors bidding on government/parastatal tenders. Eligibility: valid tender docs, business proof, and 1-10% bid value security. Short-term, fees-based rather than interest.​

Crucial for Kenyan contractors, issued quickly to secure deals.​

10. Imara Loan

Unsecured or low-collateral for salaried without MOU, up to Ksh 3M over 3-84 months at 18-34%. Needs payslips and guarantor.​

11. Unsecured Salary Advance

Quick advances for Faulu salary account holders, short-term with higher rates. Instant via mobile.​

Faulu's loans emphasize financial inclusion, with branches across Kenya including Nairobi for easy access. Rates vary by risk/profile (check CBK for latest), and all require CRB clearance. Prospective borrowers should visit faulu.co.ke or branches for 2026 updates, as products evolve.