Consolidated Bank has launched a short term credit facility for small and medium enterprises (SMEs), whose total investment does not exceed Sh5 million.
The Bank’s chief executive officer, David Wachira said the credit would help the SME’s by giving them access to working capital.
It will promote and finance enterprises in industrial, commercial, agro-industrial and service sectors.
The bank will also extend temporary facilities to finance orders procured from the Government, parastatals and reputable firms. Also to benefit are farmers whose proceeds are sufficient to cover the facility advanced.
“This new facility will demonstrate the viability of lending to SMEs using non traditional collateral,” said Mr Wachira, a road already travelled by K-Rep, Equity and Family Finance banks.
Mr Wachira said that the bank, which recently set up a policy on financing of SMEs, intends to grow its retail banking in the next five years.
According to a Central Bank of Kenya (CBK) report on bank charges and lending rates released recently, the bank had some of the lowest charges at 15.5 per cent for loans of between Sh50,000 and Sh500,000, repayable over two years.
The bank will roll out several other products and services this year, targeting the low income segment of the market.
SOURCE: DAILY NATION
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