Sidian Bank Limited is a Kenyan bank that offers a variety of loan products to individuals and businesses. One of their loan products is the Micro Finance Individual Loan, which is designed to help individuals access financing for their personal needs.
This loan product is ideal for those who need a small amount of money to cover expenses such as medical bills, school fees, or emergencies.
The Micro Finance Individual Loan has a maximum tenure of 24 months, with a minimum tenure of 3 months. The loan size starts at SME, and the interest rate is set at 13%.
Collateral is required for this loan, with the option of providing either a 10% cash collateral or log books, title deeds, or shares. The interest structure is reducing balance, and there is an application fee of 0 and a processing fee of 3%.
Additionally, an excise duty of 20% of the processing fee and a chattel registration fee of Ksh1000 are also charged.
For those who need financing for their personal needs, Sidian Bank Limited’s Micro Finance Individual Loan is a great option. With a competitive interest rate and flexible repayment terms, this loan product can help individuals access the funds they need to cover unexpected expenses or to achieve their personal goals.
Overview of Sidian Bank Limited
Sidian Bank Limited is a medium-sized financial services provider in Kenya that offers a wide range of financial solutions to meet the needs of entrepreneurs and small-to-medium business enterprises.
The bank’s mission is to empower entrepreneurs to create wealth through the provision of transformational financial solutions that facilitate growth through convenience and choice.
Sidian Bank Limited was established in 1984 as K-Rep Bank before rebranding to Sidian Bank Limited in 2016. The bank is headquartered in Nairobi, Kenya, and has a network of branches across the country.
Sidian Bank Limited is committed to providing its customers with innovative financial solutions that help them achieve their goals. The bank’s products and services include personal and business banking, asset finance, trade finance, microfinance, and insurance.
Sidian Bank Limited is dedicated to providing exceptional customer service and building long-term relationships with its customers. The bank’s team of experienced professionals is always ready to assist customers with their financial needs and provide them with the guidance they need to make informed decisions.
Micro Finance in Sidian Bank Limited
Sidian Bank Limited offers a range of loans to its customers, including microfinance loans. Microfinance loans are designed to help microenterprises that have been in operation for at least 24 months.
These loans are ideal for customers who need access to credit but may not qualify for traditional bank loans due to lack of collateral or credit history.
To qualify for a microfinance loan from Sidian Bank Limited, customers must maintain an active account with the bank for at least six months.
They must also have serviced their previous loans without default and have a maximum repayment obligation of Net Household Income (NHI). Customers can borrow a minimum of KES. 50,000 and a maximum of KES. 2,000,000.
Sidian Bank Limited’s microfinance loans have a competitive interest rate of 13% and a processing fee of 3%. Customers are also required to pay an excise duty of 20% of the processing fee and a chattel registration fee of KES. 1,000. The loan is secured, and customers must provide collateral of 10% cash collateral and log books, title deeds, or shares.
The loan has a minimum tenure of three months, and the repayment period can be up to 36 months. The interest rate is calculated on a reducing balance, which means that the interest charged decreases as the loan is repaid.
Sidian Bank Limited’s microfinance loans are an excellent option for customers who need access to credit but may not qualify for traditional bank loans.
Individual Loan Products
Sidian Bank Limited offers a variety of individual loan products to meet the specific needs of their clients. These loan products are designed to be flexible, affordable, and accessible to all.
Here are some of the individual loan products offered by Sidian Bank Limited:
Micro Finance Individual Loan
The micro finance individual loan is a secured loan product that is designed to provide financing to small and medium-sized enterprises (SMEs). The loan size ranges from Ksh 300,000 to Ksh 3,000,000, and the minimum tenure is 3 months, while the maximum tenure is 24 months.
The interest rate is calculated on a reducing balance basis, and the collateral needed is 10% cash collateral, log books, title deeds, or shares.
Emergency Loan
The emergency loan is a short-term facility that is targeted at salaried clientele. It is meant to meet short-term needs such as emergencies, medical bills, school fees, and more.
The loan size ranges from Ksh 10,000 to Ksh 500,000, and the maximum tenure is 12 months. The interest rate is calculated on a reducing balance basis, and the repayment is done through check-off.
Asset Finance Loan
The asset finance loan is a secured loan product that is designed to provide financing for the purchase of assets such as vehicles, machinery, and equipment.
The loan size ranges from Ksh 300,000 to Ksh 50,000,000, and the maximum tenure is 60 months. The interest rate is calculated on a reducing balance basis, and the collateral needed is the asset being financed.
Personal Loan
The personal loan is an unsecured loan product that is designed to provide financing for personal needs such as home improvement, education, and more.
The loan size ranges from Ksh 10,000 to Ksh 500,000, and the maximum tenure is 36 months. The interest rate is calculated on a reducing balance basis, and the repayment is done through check-off.
Sidian Bank Limited aims to provide affordable and accessible loan products to their clients. They understand that every client has unique financial needs, and they are committed to providing customized solutions to meet those needs.
Eligibility Criteria for Individual Loans
Sidian Bank Limited offers Micro Finance Individual Loans to individuals who meet certain eligibility criteria. Here are the requirements to qualify for an individual loan from Sidian Bank:
- Time in operation: The borrower must have been in business for at least 24 months.
- Banking history: The borrower must have a banking history of at least 6 months.
- KRA Pin: The borrower must have a valid KRA Pin.
- National ID: The borrower must have a valid National ID.
The minimum loan amount for a Sidian Bank Micro Finance Individual Loan is Ksh300,000, while the maximum amount is Ksh3,000,000. The loan tenor ranges from 3 months to 24 months, and the repayment frequency can be either weekly or monthly.
To apply for a Sidian Bank Micro Finance Individual Loan, the borrower must provide the following documents:
- KRA Pin
- National ID
- 6 months of bank statements
- Business registration documents
- Proof of income
In addition to the above requirements, the borrower must also have an active account with Sidian Bank for at least three months.
It’s important to note that Sidian Bank charges a facility fee of 3% and an annual renewal fee of 1.5% for their Micro Finance Individual Loans. Collateral options include chattels mortgage over business assets and a 75% MCF guarantee.
Overall, Sidian Bank’s Micro Finance Individual Loans are a great option for individuals who meet the eligibility criteria and need financing for their businesses.
Loan Application Process
Applying for a Sidian Bank Limited Micro Finance Individual Loan is a straightforward process. Here are the steps to follow:
- Determine eligibility: The first step is to determine if you are eligible for the loan. Sidian Bank Limited Micro Finance Individual Loan is available to SMEs. You will need to provide collateral such as cash, logbooks, title deeds, or shares.
- Gather required documents: After determining eligibility, gather the required documents. You will need to provide a copy of your national ID, KRA PIN, business permit, bank statements, and audited financial statements for the last two years.
- Fill out the application form: Once you have gathered the required documents, fill out the application form. You can get the form from any Sidian Bank branch or download it from the bank’s website.
- Submit the application form: After filling out the application form, submit it to any Sidian Bank branch. You will also need to provide the required documents.
- Wait for approval: After submitting the application form and required documents, you will need to wait for approval. The bank will review your application and determine if you meet the eligibility criteria and if you have provided all the required documents.
- Receive the loan: If your application is approved, you will receive the loan in your bank account. The loan amount, interest rate, and repayment period will depend on your eligibility and the bank’s policies.
It is important to note that the loan application process may vary depending on the type of loan and the bank’s policies. It is advisable to contact the bank or visit their website for more information on the loan application process.
Interest Rates and Fees
Sidian Bank Limited Micro Finance Individual Loan has an interest rate of 13%, which is charged on a reducing balance. The loan has a processing fee of 3% and an excise duty of 20% of the processing fee. The loan is secured, and the collateral required is 10% cash collateral and log books, title deeds, or shares.
The loan size available for SMEs is not specified, but the minimum tenure is three months, while the maximum tenure is 24 months. The loan is ideal for small business owners who need short-term financing to meet their business needs.
Sidian Bank Limited Micro Finance Individual Loan has a simple application process, and the loan is disbursed within a short period. The loan is also flexible, and the borrower can choose the repayment period that suits their business needs.
It is important to note that there are other fees that may be charged, such as late payment fees and prepayment fees. Therefore, borrowers should ensure that they understand all the fees and charges associated with the loan before applying.
Loan Repayment Terms
Sidian Bank Limited Micro Finance Individual Loan repayment terms are flexible and easy to understand. The loans can be repaid on a weekly or monthly basis, depending on the borrower’s preference. The repayment period ranges from 6 months to 24 months, giving borrowers ample time to repay the loan.
The loan attracts an interest rate of 13% per annum, which is calculated on a reducing balance basis. This means that as the borrower repays the loan, the interest charged reduces, resulting in lower repayments over time.
To qualify for the loan, the borrower must have been in business for at least 24 months and have a banking history of at least 6 months. The borrower must also have a valid KRA PIN and National ID.
Sidian Bank Limited Micro Finance Individual Loan has a minimum loan amount of Ksh 300,000 and a maximum loan amount of Ksh 3,000,000. The loan is suitable for individuals who need financing to grow their businesses or to meet personal financial needs.
In case of default, the bank reserves the right to charge a penalty fee of 5% of the outstanding loan amount. The bank may also take legal action to recover the outstanding loan amount.
Overall, Sidian Bank Limited Micro Finance Individual Loan repayment terms are designed to be flexible and easy to understand, making it an attractive option for borrowers who need financing for their businesses or personal needs.
Customer Support and Services
Sidian Bank Limited offers excellent customer support and services to its clients. The bank has a dedicated customer service team that is always ready to assist clients with any issues they may have.
Clients can reach the customer service team through various channels, including phone, email, or by visiting any of the bank’s branches. The bank’s website has a comprehensive FAQ section that provides answers to some of the most commonly asked questions.
This section is beneficial to clients who prefer self-service and want to find quick solutions to their problems. The website also has a chatbot that is available 24/7 to assist clients with any inquiries they may have.
Sidian Bank Limited offers a range of services to its clients, including mobile banking, internet banking, and SMS banking. These services are convenient and allow clients to access their accounts and perform transactions from anywhere at any time.
The bank also has a mobile app that is available for download on both Android and iOS devices. The app allows clients to access their accounts, transfer funds, pay bills, and much more.
In addition to the above services, Sidian Bank Limited also offers training and advisory services to its clients. The bank has a team of experts who are knowledgeable in various fields and can provide clients with valuable advice on how to manage their finances better.
The bank also offers financial literacy training to help clients understand financial concepts better and make informed financial decisions.
Overall, Sidian Bank Limited is committed to providing excellent customer support and services to its clients. The bank’s dedication to its clients is evident in the range of services it offers and the quality of customer support it provides.
Frequently Asked Questions
How can I qualify for an individual loan at Sidian Bank?
To qualify for an individual loan at Sidian Bank, you need to meet certain requirements. You must be a Kenyan citizen or a resident with a valid work permit. You must also be between the ages of 18 and 60 years old.
You must have a stable source of income and a good credit score. You will also need to provide collateral such as cash, log books, title deeds, or shares.
What is a micro personal loan?
A micro-personal loan is a type of loan that is designed to meet the short-term financial needs of individuals. It is usually offered by microfinance institutions or banks that specialize in providing financial services to low-income individuals or small businesses.
The loan amount is usually small, typically ranging from KES. 1,000 to KES. 500,000, and the repayment period is usually short, usually between 1 and 12 months.
Is Sidian Bank considered a microfinance bank?
Yes, Sidian Bank is considered a microfinance bank. It offers a range of microfinance products and services, including micro personal loans, group loans, and business loans.
The bank’s microfinance products are designed to meet the financial needs of low-income individuals and small businesses.
What are the disadvantages of personal loans?
While personal loans can be a convenient way to access funds, they also have some disadvantages. One of the main disadvantages is that they can be expensive, with high-interest rates and fees.
They can be difficult to qualify for if you have a poor credit score or limited collateral. Finally, if you are unable to repay the loan on time, it can negatively impact your credit score and financial standing.
What is the Dokosa loan app and how does it relate to Sidian Bank?
The Dokosa loan app is a mobile app that allows users to access microfinance loans from Sidian Bank. The app offers a simple and convenient way to apply for loans, with fast approval times and flexible repayment terms. The app is available for download on both Android and iOS devices.
What are the charges associated with Sidian Bank’s microfinance loans?
Sidian Bank charges various fees for its microfinance loans, including interest, application fees, processing fees, and excise duty. For example, the interest rate for the Micro Finance Individual Loan is 13% per annum, and the processing fee is 3% of the loan amount.
Additionally, there is an excise duty of 20% of the processing fee. It is important to carefully review the loan terms and associated charges before applying for a loan.
Final Thoughts
Sidian Bank Limited Micro Finance Individual Loan is a great option for individuals who need a loan for personal or business purposes. With a maximum loan amount of KES. 500,000.00 and a maximum tenor/period of 24 months, this loan is flexible and can be tailored to meet the borrower’s specific needs.
One of the best features of this loan is the low-interest rate of 13%. This makes it an affordable option for those who need to borrow money but don’t want to pay high interest rates. The loan also has a processing fee of 3%, which is reasonable compared to other loans in the market.
Another advantage of the Sidian Bank Limited Micro Finance Individual Loan is the collateral needed. Borrowers only need to provide 10% cash collateral, which is a relatively low requirement compared to other loans that require collateral such as log books, title deeds, or shares.
Overall, the Sidian Bank Limited Micro Finance Individual Loan is a great option for those who need a loan for personal or business purposes. With its low-interest rate, flexible repayment period, and low collateral requirement, it is an affordable and convenient way to access credit.
