NIC
NIC BANK LOANS
PERSONAL LOANSTheir personal loans offer you an opportunity to acquire assets, accomplish your educational goals and are custom made to suit your lifestyle at very competitive rates. They are available to those who have regular income to finance personal consumption and development needs. You can borrow from Kshs.100, 000 to Kshs.4, 000,000 and pay it monthly over a term from 6 months to 6 years, making it easier to budget.
Loan eligibilityIn the course of repaying your loan, you may require more funds. They are able to advance you additional funds through a top up loan once you have successfully repaid the current loan for at least 6 months.Original and copy of ID / passport (non-NIC Bank applicants)Last 6 months bank statement (non-NIC Bank applicants)Proof of income1 passport size photographOriginal and copy of KRA Pin certificateOriginal and copy of utility billIntroduction letter from employer on company letterhead(salaried applicants)CAR LOANSTheir car loan is available to salaried customers to purchase a car for personal use.FeaturesMinimum loan of Kshs.300, 000Maximum loan amount depends on the customer’s ability to pay.Financing up to 90% of car valueRepayment period: Up to 72 monthsRequirementsCopy of the log book of car to be purchasedCopy of accepted sale agreement with proof of contributionAA of Kenya/Franchise dealers valuation
SECURED DIASPORA LOANSThey not only offer loan to individuals who reside in Kenya but also to those in the Diaspora. Their Diaspora secured loan is available to non- resident Kenyan citizens working outside the country and their salaries are paid to an NIC Bank account or customers who transfer funds to an NIC Bank accounts on a regular basis.FeaturesMinimum loan amount is Kshs.300, 000Maximum based on the value of the security and repayment capacityRepayment period of up to 48 monthsRequirementsThe applicant must be able to demonstrate proper legal status in the country of residenceThe applicant must have lived in the resident country and worked there for not less than 6 months.EDUCATION LOANSAre you looking to further your studies or need to pay for your semester fees? Their unsecured educational loan can be used by students to fund their own education or education of a child, dependent or relative.FeaturesMinimum loan amount is Kshs.50, 000Maximum loan amount is Kshs.1, 000,000Repayment period of up to 48 monthsRequirementsCustomer must provide an admission letter from the Institution with the fees structureLoan proceeds will be made direct to the educational institution by way of Banker’s Cheque, RTGS or EFT (Transfer charges will be borne by the customer).Top ups allowed as long as debt to income ratio is not more than 60% subject to a maximum of Kshs.1,000,000
OVERDRAFTSTheir overdraft facility is a short term credit loan that allows you to access more than what is available in your bank account. This is a revolving facility offered to personal customers.FeaturesMaximum limit of Kshs.20, 000 for Gold CustomersMaximum limit of Kshs.50, 000 for Platinum CustomersOverdraft facility to be accessed once per quarter on an unsecured basisVirtual limit to be regularized within 30 daysSALARY ADVANCETheir salary advance facility is granted to salaried employees to finance emergency needs awaiting receipt of salaries.FeaturesMaximum amount is 60% on net income repayable on receipt of salary (maximum one month)Facility is accessible 3 times a yearCustomer must have been banking with NIC and salary received on current account for a minimum of 6 monthsSECURED PERSONAL LOANSLeveraging your personal assets can help you secure a loan or line of credit at a lower interest rate with NIC Bank. Personal assets could be your home, car or personal savings. The value of these assets helps their team of experts determine the rate of your loan or line of credit.FeaturesMinimum loan of Kshs.300, 000Maximum loan is based on capacity to repayFinancing up to 90% of value of securityRepayment period is up to 60 months or to retirement age/expiry of other critical docs.
UNSECURED PERSONAL LOANSBy taking up an unsecured personal loan with NIC Bank, they will not need you to provide any property or collateral to ‘secure’ or guarantee the loan.FeaturesMinimum loan amount is Kshs.100, 000Maximum loan amount is Kshs.4, 000,000Repayment period of up to 72 monthsRequirementsCertified copy of ID/ valid Passport for non – KenyansKRA PIN Certificate/ equivalent tax certificate for Diaspora clients .Latest three (3) months pay slips (6 for commission staff)Latest six (6) months bank statements (12 for commission staff)Proof of residence documentLetter from employer (In NIC Bank format )Check off letter (where applicable)Current Contract Letter must be provided by Customers employed on contract, Commission income earners and expatriates.Rental income should be channeled through NIC Bank account & Original or certified true copy of tenancy agreement provide, supported by Deed of Rental Assignment upon loan approval.SAFARICOM DEALERS AND AGENTSThese are products that enable Safaricom dealers and agents to access funding easily for their businesses. The products include:REAL TIME COLLECTION AND PAYMENTSAll Safaricom dealers and M-PESA agents can NOW deposit funds to make purchases for airtime or merchandise through any of the NIC Bank branches countrywide. The funds deposited in the NIC Safaricom collection Account will reflect in the dealer portal in real time.All dealers and agents who are NIC customers can transfer funds from their accounts through both online and mobile banking platforms 24/7 directly into the Safaricom collection account. This will enable dealers and agents to place their orders via the dealer portal anytime.NIC SASAUnder this solution NIC bank offers 4 types of financing to Safaricom Dealers/ Agents.Float Financing: This is a product for authorized Safaricom M-Pesa agents who require financing their weekly M-Pesa float purchase.FeaturesLimit: up to 0.5 times of the average monthly commission received by the business.Maximum tenure: 5daysInterest: 0.041% per day or 0.21% for the 5 daysThe funds will be paid directly into the customer selected M-PESA tillRepayment can be daily or a lump sum payment at the end of the 5 days inclusive of interest.Qualifying criteriaThe business must have been in operation for at least 12 monthsBoth NIC and Non-NIC customers are eligibleAdditional requirementsMust be a valid Safaricom Dealer or M-PESA agent and hold a copy of a Valid M-PESA agency agreement between themselves and Safaricom Limited.Completed and signed NIC application form as per account mandate.Commission or residual income statements for the last six months to be provided.Completed authority form allowing NIC to seek information on the business from Credit Reference Bureau and Safaricom Ltd.Documentation for the business entity.Board resolution to borrow from NIC Bank.Completed assignment of proceeds form in favor of NIC Bank in case of default.Completed letter of set off to allow NIC Bank use their commissions to offset any loan that may be in arrears.
Airtime Financing: This is a product for authorized Safaricom dealers who require financing airtime purchase.FeaturesLimit: 5 times of the average monthly residual income (net any borrowing in form of device and motorcycle finance (Maximum amount Kshs.5 million)Maximum tenure: 5 daysThe funds will be paid to Safaricom Collection account at NIC Bank and immediately credit the dealer portal for the dealer to access the funds. These funds will specifically be used to finance airtime purchase.Repayment can be daily or a lump sum payment at the end of the 5 days inclusive of interest.Interest: 0.041% per day or 0.21% for the 5 daysQualifying criteriaThe business must have been in operation for at least 12 monthsAn NIC Bank account is requiredAdditional requirementsMust be a valid Safaricom Dealer or M-PESA agent and hold a copy of a Valid M-PESA agency agreement between themselves and Safaricom Limited.Completed and signed NIC application form as per account mandate.Commission or residual income statements for the last six months to be provided.Completed authority form allowing NIC to seek information on the business from Credit Reference Bureau and Safaricom LtdDocumentation for the business entity.Board resolution to borrow from NIC Bank.Completed assignment of proceeds form in favor of NIC Bank in case of default.Device Financing: This is a product for Safaricom authorized dealers who require purchasing devices for their business.FeaturesLimit: 0.5 times of the average monthly residual income (net any borrowing in form or airtime and motorcycle finance (Maximum amount Kshs.2 million)Maximum tenure: 30 daysThe funds will be paid to the Safaricom Collection Account at NIC BankRepayment can be daily, weekly or in lump sum payments at the end of the 30 days inclusive of interest.Interest: 1.25% per monthQualifying criteriaThe business must have been in operation for at least 12 monthsAn NIC Bank account is requiredAdditional requirementsMust be a valid Safaricom Dealer or M-PESA agent and hold a copy of a Valid M-PESA agency agreement between themselves and Safaricom Limited.Completed and signed NIC application form as per account mandate.Commission or residual income statements for the last six months to be provided.Completed authority form allowing NIC to seek information on the business from Credit Reference Bureau and Safaricom LtdDocumentation for the business entity.Board resolution to borrow from NIC Bank.Completed assignment of proceeds form in favor of NIC Bank in case of default.Completed letter of set off to allow NIC Bank use their commissions to offset any loan that may be in arrears.Motorcycle Financing: This product is for Safaricom Authorized Dealers who require purchasing a motorcycle for their business.FeaturesLimit: 0.3 times of the average monthly residual income (net any borrowing in form or airtime and motorcycle finance (Maximum amount Kshs.1 million)Maximum tenure: 12 monthMaximum financing of 70% of the value of the MotorcycleThe funds will be paid directly to the motorcycle vendor as per NIC Bank agreement with Safaricom.The loan will be repaid on a monthly basis on day of receipt of the residual income from Safaricom.
MORTGAGESChoosing the right mortgage plan is a top priority when beginning the journey to home ownership. The option you choose should fit your unique needs and preferences. At NIC Bank they have a dedicated team of Mortgage specialists to walk with you through the journey towards securing your dream home.NIC Mortgage offers you a variety of options:Equity Release – Financing against your already existing housePurchase Financing – Loan that funds to buy a readymade houseTop-Up – Increase in value of your existing mortgage due to reduction of loan amount or appreciation of property valueBalance Transfer/Refinance -Transfer of an existing mortgage from one financier to anotherConstruction Finance – Loan that funds the building of a residential home or residencePlot Purchase – Financing to buy vacant landFeatures and benefitsUp to 90% financing for Kenyan residents and 70% financing for Kenyans in the Diaspora.Mortgage Protection Insurance (MPI) cover that takes care of retrenchment, death and disability and social perils cover includedCompetitive Interest ratesFlexible repayment periods of up to 20 yearsNo penalty for early repaymentAvailable to both Kenyan citizens and non-Kenyan permanent residentsWe arrange for valuation and legal processes by bank-appointed service providersJoint applications allowedMinimum amount of Kshs.1 million. Maximum amount is based on your ability to repay.Interest is charged on a reducing balance basisRequirementsA completed and signed Mortgage application formYour Original ID/Passport (plus copies)6 months certified bank statement3 months pay slipsSale agreement or letter of offer( for purchase mortgage only)Letter of introduction from employerRelated costsCost associated with Mortgage:Arrangement feeLegal FeeValuation feeStamp duty on TransferStamp duty on ChargeInsuranceCONSTRUCTION LOANSThis product is designed for construction of property. At NIC Bank, they offer land purchase of up to 60% financing and finance for building for up to 70%.RequirementsProfile of the contractor.Approved architectural and structural drawings of the proposed project.Evidence of up to date land, rent & rates payment (i.e. receipts where applicable)Original Bills of Quantities prepared by a registered quantity SurveyorProject Implementation Schedule (Contractor’s work plan) detailing all activities and scheduled time frames; i.e. helps determine moratorium period if required.Building contract agreement between borrower and contractor.Approval by National Environmental Management Authority (NEMA)KRA PIN certificates for the borrower.Additional requirementsEvidence of project equity financing- applicants contributionCertificate of Compliance from the National Construction AuthorityApproved building plans- approved by relevant authoritiesApproved structural plansNEMA approval (for multiple units)Bill of quantities – by an independent and qualified quantity surveyor, giving total project costingContractor agreementFor stalled projects, provide project historyProfiles for architect, quantity surveyor, structural engineer, project managerPLOT PURCHASE LOANThe plot purchase loan allows a borrower to purchase undeveloped property designated for commercial or residential development.FeaturesLimit: Maximum of Kshs.5million subject to LTV and serviceability.Maximum tenure: 5 years or end point at which the borrower, in case of self-employed, attains the age of 60Loan to Value Ratio: Standard loan to value ratioQualifying criteriaEstablished business for at least 4 years with a good track recordCustomer of the Bank for at least 1 yearMaximum two unpaid items in the last 6 months and none in the last 3 monthsMaximum two excess drawings in the last 6 months and none in the last 3 monthsRegular and consistent credits in the account for last 12 monthsMaximum aggregate monthly repayments should not exceed 20% of average monthly turnover of the last 12 monthsDebt Servicing Capacity Ratio does not exceed 40%The applicant (in case of sole proprietor must be between 25 years and 65 years old).Additional requirementsEvidence of payment of deposit priceThe borrower must have clear and proven source of repayment – already existing income streams that are sufficient to meet expected repayment.Security to be by way of first legal charge on the property being financed and/or another propertyMortgage Protection Policy for the sole proprietors or partnersCopy of signed sale agreement between the buyer and vendor to be submitted to the Bank.Property to be valued by a valuer on the Bank’s panelThe business should not be in prohibited list as defined in NIC Group PolicyNo adverse Credit Reference Bureau (CRB) report
PROPERTY PURCHASE LOANThis loan can be used to purchase property for owner occupier or for rental income. In case of residential, this shall apply where the owner of the business shall reside. In case of commercial the property shall generate rental income.FeaturesLimit: Subject to LTV as per master credit policy with serviceability demonstrated from existing and projected income streams.Maximum tenure: 10 years or end point at which the borrower, in case of self-employed attains the age of 60Loan to Value Ratio: Standard loan to value ratioQualifying criteriaEstablished business for at least 2 years with a good track recordCustomer of the Bank for at least 12 months. For new customers, to provide Bank statements for 12 months and open an account with NICAccount must have a maximum of 2 unpaid items in the last 6 months and none in the last 3 monthsAccount must have a maximum of 2 excess drawings in the last 6 months and none in the last 3 monthsRegular and consistent credits in the account for last 12 monthsMaximum aggregate monthly repayments should not exceed 30% of average monthly turnover of last 12 monthsDebt Servicing Capacity Ratio does not exceed 50%The applicant (in case of sole proprietor must be between 25 years and 65 years old)Additional requirementsEvidence of payment of deposit priceThe borrower must have clear and proven source of repayment – already existing income streams that are sufficient to meet expected repayment.Security to be by way of first legal charge on the property being financed and/or another propertyMortgage Protection Policy for the sole proprietors or partnersFire Policy over the property with Bank’s interest duly noted.Property to be valued by a valuer on the Bank’s panelCopy of the signed sale agreement between the buyer and vendor to be furnished to the BankThe business should not be in the prohibited list as defined in NIC Group PolicyNo adverse Credit Reference Bureau (CRB) reportAudited accounts must be provided for amounts above Kshs.15MillionASSET FINANCEThe NIC Bank knows you’ve got big dreams to grow your business so don’t just sit back. Go to NIC Bank, the home of Asset Financing. NIC Bank assists clients acquire new and used movable assets at competitive interest and term rates. They have extensive knowledge of asset finance, with their team averaging decades of experience.HIRE PURCHASENIC Bank understands that your business needs to run smoothly – and growing in line with your plans – you may need to buy new vehicles, equipment or machinery. This may be costly, so they offer a number of options to help spread the cost.Their hire purchase relationship managers seek to provide financing to customers to purchase the below products amongst others:Saloon carsCommercial vehiclesPSV VehiclesBusesTrailersTractors & related implementsContractor equipmentSpecialized equipmentOffice equipmentIndustrial equipmentRefinancing of existing equipment/motor vehicles.BenefitsPayments in convenient installmentsSimple documentationQuick turnaround time of 24 hoursNo hidden costs like legal fees and stamp dutyInsurance Premium Financing for the assets purchasedApproval in 12 hoursIndividual requirementsFully Completed Asset Finance Loan Application form (available at all NIC Bank branches & motor vehicle dealers)Latest 6 months’ bank statements (original or certified copies)Latest 3 months’ payslips (if employed)Copy of ID CardCopy of PIN CertificateProforma invoice/sale agreementIn addition to the above, for used vehicles, additional documents required are:Copies of logbook/import papersCurrent market valuation report from AA Kenya, Regent Valuers or the vehicle franchise holder in Kenya.Limited company requirementsFully Completed Asset Finance Loan Application form (Available at all NIC branches & motor vehicle dealers)Latest 6 months’ bank statements (Original or certified copies)Certificate of Incorporation/RegistrationMemorandum & Articles of AssociationID & PIN Certificate copies for all directorsCopy of company PIN CertificateProforma invoice/sale agreementIn addition to the above, for used vehicles, additional documents required are:Copies of logbook/import papersCurrent market valuation report from either AA Kenya, Regent Valuers or the vehicle franchise holder in Kenya
INSURANCE PREMIUM FINANCINGInsurance Premium Financing (IPF) is a facility that enables you to pay your insurance premiums in installments rather than in one lump sum amount. IPF is only taken for short term policies, that is, those that are renewable annually.Examples of such insurance policies:Fire and perilsMotor – Commercial or PrivateWIBABurglaryMedical InsuranceContractors all riskGroup LifeIPF allows an organization to obtain needed coverage without liquidating other assets or offering up collateral as with ordinary loans. For organizations, multiple insurance policies can be attached to a single premium finance contract allowing for a single payment plan to cover all insurance coverage.BenefitsNo credit appraisal for the facility to be taken upConvenient and simple documentationEasy application processQuick processing timeNo hidden charges or feesCompetitive pricingTurnaround time for payment of premium to the Insurance Company is 48 hours.RequirementsCopy of National ID/PIN for individual applicantsCopy of Certificate of Incorporation/ Certificate of Registration for business entitiesCompany PINCopy of Memorandum & Articles of Association, Partnership Deed or other constitutive document as per registered entity type for corporate entitiesOPERATING LEASESAn operating lease is a contract that allows a lessee to use an asset over a specific period of time in return for periodic payments based on partial payout of the capital cost of the asset. It does not convey the right of ownership of the asset. This product offering is currently available for Small and Medium Size Enterprises (SME’s), Corporate and Government both County and Central Government.Asset classes that can be leased:Motor vehiclesIT equipmentSupermarket equipmentConstruction equipmentFurniture, fixtures and fittingsMedical equipmentIndustrial equipmentBenefitsNo large initial capital required either for deposit contribution or outright purchaseNo risks of obsolescenceFlexibility in lease structuringFull lease rental is an operating expense thus providing a tax benefitAllows flexibility at the end of the lease term such as extension on the lease or replacement of old assets for newNo involvement in disposal of the asset at the end of the lease termVAT on the asset leased is spread over the lease term of the assetRental payments are not based on 100% cost of the asset.Financial ratio benefits as assets are off balance sheet.No large asset registers required as assets not ownedSME LOANSNIC Bank offers reliable SME lending products that provide various business entities with an opportunity to grow through the provision of multiple lines of credit.They provide business loans as per specific requirements as they ensure quick turnaround time on facility requests.They have split the SME business line into 3 tiers:Lower tier SME: those business with turnover below Kshs.15mMiddle tier SME: those businesses with a turnover between Kshs.15m and Kshs.50mUpper tier SME: those businesses with a turnover above Kshs.51m
INVESTMENT CLUB LOANSClub loans are typically used to finance business investments of the group and are suited for formal registered savings and investment groups.Loan featuresMinimum loan amount is Kshs.1, 000,000Maximum loan amount is Kshs.50, 000,000 or 4 times the amount of savings, whichever is lower.Maximum Tenure: 48 monthsLoan to Value Ratio: 70% where security is pledged or being purchased.Qualifying criteriaGroup has to be formally registeredThe scope of loans is to be limited to wealth creation activities.Total contributions per month should exceed more than 2 times the monthly loan repayment to the bank. This should be exclusive of any income generating activity.Additional requirementsGroup members can co-guarantee one anotherCopy of Trustee Deed to be submitted to the bankINVOICE DISCOUNTINGThis product allows discounting of invoices from reputable customer base in the industries.FeaturesThey finance 80% of the value of invoice or certificate subject to minimum of Kshs.300, 000 and maximum of Kshs.3, 000,000Maximum Tenure: 90 days – 120 daysQualifying criteriaThe business must have operated for at least 2 yearsYou must have been a customer of the Bank for at least 6 months.Regular and consistent credits in the account for last 12 months. Credit turnover should not show declining trend and the account should record credit balance should at least once every quarter.Additional requirementsA profile and review of the company that the borrower seeks to discount their invoices to be provided to assess the company’s credit worthiness and ability to honor such payments.The business should not be in prohibited list as defined in NIC Group PolicyNo adverse Credit Reference Bureau (CRB) reports for all partiesThe Invoice must be accepted by the payer.Payer to confirm that proceeds is to be paid directly to the Borrower’s account with NIC Bank.The payer is to be approved by the Bank and a tripartite agreement executed between the payer, borrower and the Bank.MEDICAL BILL DISCOUNTINGThis is a product for medical practitioners who require bills to be discounted on services rendered to patients.FeaturesLimit: 50% of the value of claimsMaximum tenure: 90 daysQualifying criteriaThe debtor must be an insurance company or private hospital approved by the BankThe business must have operated for at least 3 yearsRegular and consistent credits in the account for last 6 months. Credit turnover should not show declining trend and the account should record credit balance should at least once every quarter.Additional requirementsThe customer should not have pledged a Debenture on its assets in favor of another lenderThe business should not be in prohibited list as defined in NIC Group PolicyConfirmation by the Debtors that payment will be made to the customer’s account with the BankNo adverse Credit Reference Bureau (CRB) report
CONTRACT FINANCINGContract financing at NIC Bank is suitable for limited companies in contracting business to finance receivables.FeaturesThey finance 70% of the value of certificate subject to aggregate maximum of Kshs.10, 000,000 and a transaction value of between Kshs.1, 000,000 and Kshs.3, 000,000.Maximum Tenure: 90 days – 120 daysQualifying criteriaBorrower must be the main contractor or nominated sub-contractorThe tenor of the contract to be not more than 24 monthsClient commitment to the project should not be less than 30%Contractor must have sound financing standing to meet contractual obligationContractor must have been in the same line of business for not less than 3 yearsSponsors should be multinationals, local corporate, NGOs and government agencies and should be approved by the BankThe contractor to show performance in at least 3 past contracts of similar complexity and natureNot more than 50% financing on pre-implementation and 50% on post-implementationAdditional requirementsSigned Contractual document should be submittedConfirmation letter from the sponsor giving indication of contract awarded and that payments will be paid directly to the contractor’s account with the BankCertificates for payments to be approved by the sponsor before disbursementsCertification of completion to be provided where applicable(part completion financing)The contractor to execute a fixed and floating debenture over all its assets in favor of the bank and should not have any existing securities with another bank i.e. Debenture.Deed of Assignments of Benefits under contract in favor of the Bank.SCHOOL/COLLEGE LOANSNIC Bank finances the expansion of infrastructure or working capital of schools, colleges and universities.Loan featuresLimit: 30 % of fee income receivable in a term/semester subject to a maximum of Kshs.20, 000,000Repayment can be on a quarterly basis to allow for cash flow flexibilityMaximum tenure 90 days – 120 days for temporary overdrafts48 months for infrastructure expansion/renewal loansLoan to Value Ratio: Standard loan to value ratioQualifying criteriaLimit: 30 % of fee income receivable in a term/semester subject to a maximum of Kshs.20, 000,000Repayment can be on a quarterly basis to allow for cash flow flexibilityMaximum tenure 90 days – 120 days for temporary overdrafts48 months for infrastructure expansion/renewal loansLoan to Value Ratio: Standard loan to value ratio
SECURED BUSINESS LOANSThe secured business loan is suitable for SME customers cutting across all industries. The secured loan can be used as per the need of the business.FeaturesMinimum loan amount is Kshs.100, 000Maximum loan amount is determined by serviceabilityMaximum Tenure: Expansion of business or business start-ups with related businesses is 7 yearsWorking Capital is maximum 3 yearsLoan to Value Ratio: Standard loan to value ratio appliesQualifying criteriaThe Business must have operated for at least 2 years. This does not apply to customers offering deposits as security.For new business start-ups, business owners will have to demonstrate experience in running related or other businessesFor existing business, the customer must have had an account with the Bank for at least 6monthsFor business startups, customer must provide evidence of a track record in another business for at least 2 yearsFor new relationship, the customer must provide statement of account with another bank for a period not less than 12 monthsMaximum aggregate monthly repayment should not exceed 45% of average monthly turnover of last 12 monthsAdditional requirementsThe borrower must have clear and proven source of repayment – already existing income streams that are sufficient to meet expected repayment.Repayment ability will be based strictly on existing business cash flowsThe business should not be in prohibited list as defined in NIC Group PolicyNo adverse Credit Reference Bureau (CRB) report.Industry of the borrower must have positive outlookAudited accounts must be provided for amounts above Kshs.15Million in which case the Debt Servicing Capacity Ratio should not exceed 50%SECURED OVERDRAFTThe NIC Secured Overdraft facility can be used to finance working assets of a business, mainly stocks, trade debtors and creditors.FeaturesMinimum loan amount is Kshs.100, 000Maximum loan amount is 25% of turnover for the last 12 months.Maximum Tenure: Renewable annuallyLoan to Value Ratio: Standard loan to value ratio appliesQualifying criteriaThe Business must have operated for at least 2 years. This does not apply to customers offering deposits as security.You must have been a customer of the bank for at least 6 months. Where the customer is new to the bank, 12 months bank statement must be furnished.Trading and manufacturing businesses should be able to show evidence of the value of stocks purchased or credit sales which account for the financing need.Service businesses should be able to demonstrate that the period between their production and delivery of a service and the collection of billing invoices is reasonably short. Activity must be regular and predictable. Care should be taken with service businesses with long lead times or customers who are known to be slow payers.Additional requirementsThe borrower must have clear and proven source of repayment – already existing income streams that are sufficient to meet expected repayment.Repayment ability will be based strictly on existing business.The business should not be in prohibited list as defined in NIC Group PolicyNo adverse Credit Reference Bureau (CRB) report.Industry of the borrower must have positive outlookAudited accounts must be provided for amounts above Kshs.15 Million.NIC to be the sole bankerCORPOATE LOANSLINES OF CREDITCorporate Overdraft: This product caters for the financing of customers’ working capital cycle taking into account the lead times in procurement of stocks, the manufacturing process and any terms of supplier credit including credit extended to customersTERM LOANS (Construction loans, Asset Based lending, Capital Expenditure loans)Due to the long term nature of capital expenditure for companies, financing is required for a matching term. Revenue from projects and equipment on term funding is usually generated after completion hence the need to match repayments to the customers future cash flow.