Sumac Microfinance Bank, licensed in Kenya since 2012, offers tailored loans for micro, small, and medium enterprises, focusing on business growth and asset acquisition. Below is a summary table of key loan products, eligibility criteria, and indicative rates based on available product details.
| Loan Name | Target Borrowers | Loan Amount (KSh) | Key Eligibility/Security | Repayment Period | Interest Rate (Indicative) | Processing Time |
|---|---|---|---|---|---|---|
| Business Loan | Existing entrepreneurs | 50,000 – 10M | Title deeds, logbooks, shares, fixed deposits; business proof | Up to 84 months | Competitive (not specified) | 48 hours |
| Inua Biashara Loan | Micro/small retail businesses | 5,000 – 300,000 | Guarantors, business stock/assets, household items, livestock | Flexible | Competitive | 48 hours |
| Biashara Plus Loan | Business owners needing capital | 50,000 – 2M | Title deeds, logbooks, lien on deposits/shares | Up to 84 months | Competitive | 48 hours |
| Biashara Dhabiti Loan | Transport/distribution businesses | 50,000 – 2M | Logbooks, title deeds, livestock | Up to 84 months | Competitive | 48 hours |
| Asset Finance | Asset buyers (business/personal) | Varies by asset | Lien on financed asset | Up to 84 months | Competitive | 48 hours |
| Bridging Loan | Suppliers/contractors | Varies | Title deeds, logbooks, shares/deposits, livestock | Up to 84 months | Competitive; 1-month grace | 48 hours |
| Rental Income Loan | Landlords with rental properties | Up to 1M | Proof of rental income, title deeds | Flexible; 1-month grace | Competitive | 48 hours |
Rates are generally competitive with no hidden charges, though exact percentages require branch confirmation as they fluctuate with market conditions.
Overview of Sumac Microfinance Bank
Sumac Microfinance Bank operates from its headquarters on Koinange Street in Nairobi, with five branches across Kenya. Established in 2004 as a credit-only provider, it transitioned to a full microfinance bank in 2012, serving low-income enterprises and small businesses. The bank's loan portfolio emphasizes quick processing—often within 48 hours—and flexible security options like guarantors, chattels, or formal collateral.
This focus aligns with Kenya's microfinance sector, where institutions like Sumac bridge gaps for underserved borrowers excluded from commercial banks. Products cater to retail traders, transporters, farmers, and landlords, with maximum ages typically at 59 years. Benefits include no late fees on some loans, salary-based security for salaried individuals, and check-off arrangements with employers.
1. Business Loan
The Business Loan targets established entrepreneurs seeking operating capital to expand operations. Loan sizes range from KSh 50,000 to KSh 10 million, making it suitable for scaling up inventory, hiring, or infrastructure.
Eligibility requires proof of an existing business, such as receipts, contracts, or utility bills, plus security like title deeds, vehicle logbooks, shares, or fixed deposits. Processing takes 48 hours, with repayment up to 84 months. Ideal for Nairobi-based SMEs in competitive markets like retail or services.
2. Inua Biashara Loan
Designed for micro and small businesses in general trade—like kiosks, hardware stores, Jua Kali artisans, or agribusiness—this loan addresses working capital and cash flow gaps. Amounts span KSh 5,000 to KSh 300,000, accessible for startups or daily operations.
Borrowers need guarantors, business stock/assets, household chattels, or livestock as security. No formal collateral is mandatory, broadening access for informal sector players in Nairobi and surrounding counties. Repayment is flexible, processed in 48 hours, supporting quick liquidity during peak seasons.
3. Biashara Plus Loan
Biashara Plus aids business owners with working capital needs beyond basic operations, up to KSh 2 million. It suits growing enterprises requiring substantial funding for expansion or recovery.
Key eligibility includes title deeds, logbooks, or liens on fixed deposits/shares. Like other products, it offers 48-hour processing and up to 84-month terms. This loan stands out for its balance of higher limits and reliable security, popular among Nairobi wholesalers.
4. Biashara Dhabiti Loan
Tailored for transport, distribution, construction, borehole drilling, vehicle hire, or farming businesses, this loan ranges from KSh 50,000 to KSh 2 million. It finances commodity hauling, equipment, or seasonal inputs.
Security options mirror Biashara Plus: logbooks for vehicles, title deeds, or livestock. With 48-hour turnaround and extended repayment, it stabilizes cash flows for logistics firms navigating Kenya's supply chains.
5. Asset Finance
Asset Finance enables purchases of business or personal assets like motor vehicles, machinery, furniture, electronics, or fixtures. Loan amounts align with asset value, often with the asset itself as lien security.
Eligibility demands clear purchase intent and business proof for commercial use. Repayment stretches to 84 months, processed swiftly at 48 hours. This product empowers Nairobi entrepreneurs to acquire tools without upfront capital, boosting productivity.
6. Bridging Loan
Bridging Loans support suppliers handling LPOs, LSOs, transport contracts, licenses, or specialized services like farming. It provides short-term funds without disrupting cash flows, with a 1-month grace period.
Security includes title deeds, logbooks, NSE shares, fixed deposits, or dairy cows. Up to 84-month repayment and 48-hour processing make it vital for tender-based businesses in Kenya's public procurement scene.
7. Rental Income Loan
Landlords generating rental income can access up to KSh 1 million to expand properties or related businesses. A 1-month grace and 48-hour processing suit property investors.
Requirements feature rental agreements, title deeds, and business resolutions for entities. This niche product leverages steady income streams, common in Nairobi's real estate market.
General Eligibility Criteria
Across products, applicants need Kenyan ID, two passport photos, and business evidence like PIN certificates, tax returns, or transaction records. Companies submit memoranda, resolutions, and returns; partnerships provide agreements. Salaried borrowers benefit from check-off systems, using salary as security without collateral.
Age caps at 59, with no hidden charges emphasized. Branches verify details on-site, prioritizing viable enterprises over credit history alone.
Application Process
Visit any Sumac branch with documents: ID, photos, business proofs, security papers. Staff assess viability, appraise collateral if needed, and approve within 48 hours. Funds disburse post-agreement signing. Online inquiries via branches streamline for Nairobi clients.
Interest Rates and Fees
Sumac advertises "competitive" rates, varying by product, risk, and tenure—typically reducing balance without specifics published. No late fees on select loans; processing is efficient. Confirm current rates at branches, as they align with Central Bank of Kenya guidelines.
Why Choose Sumac?
Sumac's edge lies in speed, flexibility, and SME focus amid Kenya's economic challenges. With branches accessible in urban centers, it empowers local businesses from kiosks to transporters.
For personalized advice, contact Sumac directly—their model ensures tailored financing for sustainable growth in Nairobi's vibrant economy
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