Overview Of Loan Products
SMEP has the following main product categories of credit and advances facilities:
- Group Retail Loans
- Individual and Consumer Loans
- SME Loans
- Agri-Business Loans
Loans that are advanced to micro and small entrepreneurs who have registered with a self-help group and have complied with SMEP and group rules and regulations.
These are loans,
- whose average size for initial loans to individuals is shillings 50,000 and the maximum size is shillings 3 million.
- not secured by conventional collateral such as land title deed, vehicle log-books etc.
- that largely go towards financing very small businesses or micro enterprises operated by low income people and located in areas where poor and low income people reside.
The ‘Group-Based’, are provided to individuals through groups that are either formed by SMEP or are pre-existing. The main purpose of the groups is to facilitate the management and administration of very small loans. The groups allow the MFI to attain economies of scale, as well provide for alternative collateral systems.