U&I Microfinance Bank offers tailored loan products for individuals and businesses in Kenya, focusing on quick access, asset financing, and education needs. These loans feature competitive rates, flexible terms, and straightforward eligibility tied to repayment ability and documentation.
| Loan Name | Target Customers | Key Eligibility Requirements | Interest Rates/Fees | Repayment Period |
|---|---|---|---|---|
| Fasta Fasta Loan | Importers/business owners | National ID, bill of lading, KRA PIN, good credit history, U&I statements | Low/competitive (not specified) | 1 month |
| Planner Loan | Self-employed, employed, contractors | Loan form, National ID, 6 months bank statements, passport photo, KRA PIN | Not specified; low-interest focus | Short-term (varies) |
| Asset Financing | Individuals/businesses buying assets | Loan form, National ID, U&I statements, proforma invoice, valuation report | Not specified | Up to 36 months |
| Karo Loan | Existing U&I customers for school fees | National ID, passport photo, KRA PIN, fees structure, repayment history | Not specified | Up to 9 months |
| MOU & Salary Loan | Salaried/agricultural workers | Passport photo, KRA PIN; salary channeled via U&I | Not specified | 1-6 months |
1. Fasta Fasta Loan
The Fasta Fasta Loan targets importers and business owners needing urgent funds to clear goods from ports. Approvals happen within 24 hours, financing up to 70% of collateral value.
Key features include a one-month repayment and competitive rates to support fast business turnover. Eligibility requires a copy of the National ID, passport photo, KRA PIN, original bill of lading, proof of repayment ability, good credit history if applicable, and U&I Bank statements.
This product suits Nairobi's bustling trade scene, where delays at ports can halt operations, helping small traders maintain cash flow without high costs.
2. Planner Loan
Planner Loan assists self-employed individuals, formal employees, or contract workers in meeting short-term goals like emergencies or personal development. It emphasizes flexibility for diverse income sources.
Applicants must submit a filled U&I loan application form, National ID copy, six months of original bank statements, passport photo, and KRA PIN. The bank assesses repayment capacity through these documents.
Ideal for Kenya's gig economy workers in Nairobi and Thika branches, it bridges financial gaps without rigid employment proof, promoting quick access to funds.
3. Asset Financing Loans
Asset Financing enables purchase of vehicles, trucks, buses, pickups, taxis, or land up to 80% for new assets, 70% for used ones, and 50% for land. The financed asset serves as security, reducing risk.
Requirements include a loan form, National ID, U&I statements, passport photo, KRA PIN, proforma invoice, and valuation from a U&I-approved valuer. Repayment stretches to 36 months based on servicing ability.
This loan powers growth in Kenya's transport sector, where many U&I clients operate, with average sizes around £5,000 over 36 months.
4. Karo Loan
Karo Loan finances school fees exclusively for existing U&I account holders, with direct payment to institutions. Processing takes one week, limited to nine months repayment.
Eligibility demands National ID, passport photo, KRA PIN, valid school fees structure, strong repayment history, and proof of ability to repay. It prioritizes loyal customers.
In education-focused Kenyan families, this product eases fee burdens amid rising costs, supporting retention in schools around Nairobi.
5. MOU & Salary Loan (Tea Loans)
MOU & Salary Loans target employed and agricultural sector members, like tea farmers, whose salaries route through U&I Bank. Loan amounts scale with income.
Basic needs are passport photo and KRA PIN, leveraging salary deductions for security. Terms run 1-6 months, suiting seasonal or payroll cycles.
This fits rural-urban workers in Kenya, ensuring steady access for essentials while minimizing default through employer ties.
U&I Microfinance Bank, licensed by the Central Bank of Kenya since 2013, began as a credit provider in 2007. Headquartered at Asili Complex, River Road, Nairobi, it has branches in Gikomba and Thika.
Loans emphasize low-interest rates and customer-centric features, with average APR around 40.5% for representative products including fees. Many clients in transport seek larger asset loans, while retail or farming opt for smaller ones (£600-£3,000).
Eligibility Overview
General eligibility across products stresses repayment ability, good credit, and U&I account history where applicable. Documents like National ID, KRA PIN, photos, and statements are standard.
New customers start with Planner or Fasta Fasta, while loyal ones access Karo faster. Asset loans need valuations; salary loans tie to payroll.
Banks verify via Credit Reference Bureau for history, ensuring responsible lending in Kenya's microfinance space.
Interest Rates and Fees
Rates remain competitive, often "low-interest" per U&I promotions, though specifics vary by product and risk. Representative APR hits 40.5%, covering interest, insurance, and fees.
Fasta Fasta offers quick, cost-effective clearance; asset loans spread costs over 36 months. No explicit rates listed publicly, but transparency via Key Facts Sheets applies.
Compare via loan calculators on U&I's site; mobile lending options may add digital fees.
Application Process
Visit branches or use online forms for initial submission. Provide documents; bank reviews in 24 hours for Fasta Fasta, up to a week for others.
Approvals depend on valuation for assets or salary proof. Funds disburse directly (e.g., Karo to schools) or to accounts.
Nairobi applicants benefit from River Road proximity; Thika/Gikomba serve peri-urban traders.
Benefits for Kenyan Borrowers
U&I stands out for speed and asset focus, vital in transport-heavy Nairobi. Savings, remittances, and insurance complement loans.
Flexible terms suit informal sectors; security via assets or salary lowers barriers. Average loan sizes support scaling micro-businesses.
Comparison to Other Microfinance
Unlike larger banks, U&I specializes in micro-level, quick-turnaround products. Rates align with peers (36-40% APR), but 24-hour approvals beat competitors.
Focus on importers and matatus differentiates it, with branches in trade hubs.
Tips for Approval
Build history with small Planner Loans first. Maintain six-month U&I statements; clear prior debts via CRB.
For assets, get proformas early; salaried use payroll linkage. Approach during business hours at branches.
U&I Microfinance Bank empowers Kenya's hustlers with accessible credit, from port clearances to school fees and vehicle buys. With branches strategically placed and products honed for local needs, it remains a go-to for micro-entrepreneurs seeking growth without red tape. Rates stay borrower-friendly amid economic pressures, ensuring repayment fits cash flows. For personalized advice, contact their River Road office or check loan calculators online
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