Microfinance is defined as a type of banking service that is provided to low-income individuals or groups or unemployed.  Faulu Microfinance banking company is a limited liability company duly incorporated in Kenya under the companies act. It is a Christian relief organization, loan scheme program that targeted the economically active poor in Mathare.

The following are the various types of loans offered in Faulu Microfinance bank.

1. ASSET FINANCE LOANS

The loan caters for Chama groups, individuals and businesses

Features

• Interest rate is 9.5%
• It has a long loan repayment period of up to 60 months
• The loan may be awarded to buy motor vehicles, personal cars and commercial vehicle such as matatu

2. BIASHARA LOANS 

The loan is given to women with small and medium scaled businesses to access affordable financial services.

Requirements

• Requires groups of 15-30 members to begin with
• Applicants need to have security in the procuring of the loan
• Low monthly savings

Features

• It has flexible loan amounts
• The loans issued are as low as Kshs 10,000
• It has flexible security requirements
• There is low processing fee   

3. THE CHAMA LOANS 

It targets investment groups, family Chama’s and table banking groups.

Features

• The amount of loan given is up to Kshs 350,000,000
• The duration of repaying the loan is 72 months
• Interest rate is 9.5%
• BUSINESS LOANS

It targets the small Sacco’s, land buying companies, investment groups, individuals and land buyers

Features

• The amount of loan given is up to Kshs 350,000,000
• There are low interest rates
• The duration of repaying is 84 months
• Emergency business loans are issued

4. MWAMBA LOANS 

It targets individual entrepreneurs with large scale businesses to access affordable financial services.

Requirements

• Bank statements for the last six months
• Two flexible collateral
• An applicant must own a business

Features

• An individual can procure the loan
• There are no guarantees required
• It has flexible security and monthly repayment
• The processing of the loan is fast

5. USHIRIKA LOANS

It targets the eligible groups such as self-help groups, Chama’s, the church, investment clubs and community based

Features

• The loan is awarded for development projects
• It has low loan interest rate
• The duration of repaying the loan is 60 months

6. MWANGAZA LOANS 

It is used to enable medium and big scaled business women to access affordable financial services.

Requirements

• An applicant requires security in procuring the loan
• 7-10 members who are already engaged in a business to start with

Features

• The loan processing is fast
• An individual has access to business skills training
• Flexible loan amounts
• The loan monthly repayment is 50,000 Kshs

7. BUSINESS SME LOANS

It targets small micro-entrepreneurs

Features

• There is duration of paying the loan is 72 months
• Interest rate is 9.5%
• Distributors’ loans
• Land lord loans          
• Business accounts with cheque books