The Absa Bank Kenya Secured Business Loan offers loan amounts ranging from Ksh100k to 7M, with a repayment period of 6 months to 10 years. The loan has an interest rate of 14.5% and a processing fee of 3%, with an additional 20% excise duty on the processing fee.
To qualify for this loan, you will need to provide your certificate of incorporation as collateral.
One of the benefits of the Absa Bank Kenya Secured Business Loan is that it offers a lower interest rate compared to unsecured loans. Additionally, the loan is flexible, allowing you to choose a repayment period that suits your business needs.
Understanding Absa Bank Kenya Secured Business Loan
If you are a small or medium-sized business owner in Kenya, you may be looking for financing options to help grow your business. One option to consider is the Absa Bank Kenya Secured Business Loan.
As the name suggests, this loan is secured, which means that you will need to provide collateral to secure the loan. Collateral can be in the form of property, inventory, or equipment. The loan amount you can qualify for will depend on the value of the collateral you provide.
The Absa Bank Kenya Secured Business Loan has a minimum tenure of six months and a maximum tenure of ten years. The interest rate is fixed at 14.5%, and there is an application fee of 0 and a processing fee of 3%. Additionally, an excise duty of 20% of the processing fee is charged.
The loan structure is based on a reducing balance, which means that the interest is calculated on the outstanding loan balance. This can be beneficial for borrowers as the interest paid decreases as the loan is repaid.
Repayment frequency is monthly, and the loan can be used for a variety of business purposes, including working capital, purchasing inventory or equipment, or expanding your business.
Eligibility Criteria
To be eligible for the Absa Bank Kenya Secured Business Loan, you must meet certain requirements. Here are the eligibility criteria you need to fulfill:
Business Age
Your business should have been in operation for at least three years. This is to ensure that your business is established and has a good track record.
Banking History
You must have a good banking history with Absa Bank Kenya. This means that you should have maintained a satisfactory account conduct for at least 12 months.
Business Registration Status
Your business should be legally registered with the government. You will need to provide a certificate of incorporation or a certificate of compliance if your business is not locally incorporated.
Collateral
You will need to provide collateral to secure the loan. Collateral can be in the form of property, land, or any other asset that can be sold to recover the loan in case of default.
Minimum and Maximum Loan Amount
The minimum loan amount you can apply for is Ksh 100,000, while the maximum amount is Ksh 7 million. The loan repayment period ranges from six months to ten years, depending on the loan amount and your ability to repay.
Interest Rates
The interest rate on the Absa Bank Kenya Secured Business Loan is competitive and attractive. The interest rate is fixed for the entire loan repayment period, making it easier for you to plan your finances.
By fulfilling these eligibility criteria, you can apply for the Absa Bank Kenya Secured Business Loan and get the funds you need to grow your business.
Loan Features and Benefits
If you’re looking for a secured business loan, ABSA Bank Kenya Plc’s Secured Business Loan is worth considering. Here are some of the features and benefits you can expect:
Flexible Repayment Terms
ABSA Bank Kenya Plc’s Secured Business Loan offers flexible repayment terms that can range from 6 months to 10 years. This means you can choose a repayment term that suits your business needs and budget. Additionally, you can make repayments on a monthly, quarterly, or semi-annual basis.
Competitive Interest Rates
ABSA Bank Kenya Plc’s Secured Business Loan offers competitive interest rates that can help you save money in the long run. The interest rates are calculated on a reducing balance basis, which means you only pay interest on the outstanding loan balance.
Loan Security
ABSA Bank Kenya Plc’s Secured Business Loan requires conventional security, which can include fixed or floating assets such as land, buildings, and equipment. The security you provide will depend on the amount of the loan and the risk involved.
Loan Amount Limit
ABSA Bank Kenya Plc’s Secured Business Loan has a minimum loan amount of Ksh100,000 and a maximum loan amount of Ksh7 million. The loan amount you qualify for will depend on your business needs, financial strength, and collateral.
Overall, ABSA Bank Kenya Plc’s Secured Business Loan is a great option for businesses looking for a flexible and affordable way to finance their operations. With competitive interest rates, flexible repayment terms, and a range of loan amounts, this loan can help you achieve your business goals.
Application Process
Applying for a Secured Business Loan from Absa Bank Kenya is a straightforward process. Here’s what you need to know:
Step by Step Guide
- Visit any Absa Bank Kenya branch or contact the Absa Business Banking team for more information.
- Fill out an application form with all the necessary details.
- Provide all the required documents (see Required Documents section below).
- Wait for the bank to process your application.
- If your application is approved, the bank will disburse the loan to your account.
Required Documents
To apply for a Secured Business Loan from Absa Bank Kenya, you will need to provide the following documents:
- KRA PIN
- Signed Absa account opening pack (sealed)
- Residential address confirmation (name estate, road and house number) for all directors and signatories (use the attached format)
- Company physical address confirmation
- Personal return
- Revenue stamp – KES100
In addition to the above, you will also need to provide conventional securities as collateral for the loan. The loan size can range from Ksh100K to Ksh7M, and the minimum tenure is 6 months while the maximum tenure is 10 years.
The interest rate is 14.5%, and there is a processing fee of 3% plus an excise duty of 20% of the processing fee.
Make sure you have all the required documents before you apply for the loan to avoid any delays in the application process. If you have any questions or need more information, don’t hesitate to contact the Absa Business Banking team for assistance.
Loan Repayment
When it comes to repaying your Absa Bank Kenya Secured Business Loan, you have a few options to choose from. In this section, we’ll go over those options and explain how they work.
Repayment Options
Absa Bank Kenya offers flexible repayment options to suit your business needs. You can choose between principal and interest or interest-only payments.
With principal and interest payments, you pay a portion of the principal amount borrowed along with the interest charged on the loan. This option allows you to pay off the loan over time and reduce the amount of interest you pay.
With interest-only payments, you only pay the interest charged on the loan. This option can help you manage your cash flow better in the short term, but you’ll need to pay off the principal amount borrowed at the end of the loan term.
You can also choose between fixed or variable interest rates. With a fixed interest rate, your interest rate stays the same throughout the loan term, which can help you budget and plan your repayments.
With a variable interest rate, your interest rate can change over time, which can be a good option if you think interest rates will decrease in the future.
Early Repayment Facility
If you want to pay off your Absa Bank Kenya Secured Business Loan early, you can do so without incurring any penalties. This early repayment facility allows you to save on interest charges and reduce the overall cost of the loan. Keep in mind that you may need to give notice before making an early repayment, and there may be a minimum repayment amount required.
Overall, Absa Bank Kenya offers flexible repayment options and an early repayment facility for its Secured Business Loans. Choose the repayment option that works best for your business needs and budget, and consider paying off your loan early to save on interest charges.
Customer Support
Absa Bank Kenya understands that business owners need reliable and efficient support when it comes to their financial needs. That’s why they offer excellent customer support to help you with any questions or concerns you may have about your Secured Business Loan.
If you need assistance, you can reach out to Absa Bank Kenya’s customer support team through various channels, including phone, email, and online chat. They are available to assist you with any queries you may have regarding your loan.
In addition, Absa Bank Kenya has a comprehensive FAQ section on their website that provides answers to commonly asked questions about their Secured Business Loan. This section is a great resource for business owners who need quick answers to their questions.
If you prefer face-to-face interactions, Absa Bank Kenya also has a network of branches across the country where you can visit and speak to a representative in person. They will be more than happy to assist you with any questions or concerns you may have.
Overall, Absa Bank Kenya’s customer support team is friendly, knowledgeable, and always ready to help. They understand the importance of providing excellent customer service and strive to ensure that all their clients receive the support they need to succeed in their business ventures.
Frequently Asked Questions
What are the requirements for securing a business loan from Absa Bank Kenya?
To secure a business loan from Absa Bank Kenya, you need to have a registered company or business with a valid certificate of incorporation. You also need to provide proof of ownership, such as copies of your business registration documents, and proof of income. Additionally, you may be required to provide collateral or security for the loan.
How long does it take to process a business loan application at Absa Bank Kenya?
The processing time for a business loan application at Absa Bank Kenya varies depending on the type of loan and the amount you are applying for. Generally, the process takes between 3 to 7 working days. However, this may be longer if additional documentation or verification is required.
What types of businesses are eligible for loans from Absa Bank Kenya?
Absa Bank Kenya provides loans to a wide range of businesses, including small and medium-sized enterprises (SMEs), large corporations, and start-ups. The bank offers loans for a variety of purposes, such as working capital, asset financing, and business expansion.
Can I apply for an Absa Bank Kenya business loan online?
Yes, you can apply for an Absa Bank Kenya business loan online through the bank’s website. The online application process is quick and easy, and you can track the status of your application online.
What is the maximum amount of money I can borrow for my business from Absa Bank Kenya?
The maximum amount of money you can borrow for your business from Absa Bank Kenya depends on the type of loan you are applying for and your business’s financial standing. The bank offers both secured and unsecured loans, with loan amounts ranging from KES 6 million to KES 50 million.
How does Absa Bank Kenya determine the interest rate for business loans?
Absa Bank Kenya determines the interest rate for business loans based on a number of factors, including the type of loan, the amount borrowed, and the creditworthiness of the borrower. The bank offers both fixed and variable interest rates, with rates ranging from 14.5% to 18.76% annualized.
Final Thoughts
If you’re looking for a business loan that offers competitive interest rates, flexible repayment terms, and a range of loan sizes, then the Absa Bank Kenya Secured Business Loan is definitely worth considering.
With loan sizes ranging from Ksh100K to Ksh7M and repayment terms from 6 months to 10 years, this loan can be tailored to meet your specific business needs.
One of the standout features of this loan is the security needed. The loan requires conventional securities, which means that you can use a range of assets as collateral, including property, equipment, and inventory. This can make it easier to secure the loan you need, even if you don’t have a lot of cash on hand.
Another benefit of this loan is the interest structure. The loan offers a reducing balance interest structure, which means that the interest is calculated on the outstanding balance of the loan, rather than the original loan amount. This can help you save money over the life of the loan, as you’ll be paying less interest overall.
Overall, the Absa Bank Kenya Secured Business Loan is a great option for businesses looking for a flexible, affordable loan. With competitive interest rates, a range of loan sizes and repayment terms, and the ability to use a variety of assets as collateral, this loan is a great choice for businesses of all sizes.
