Choice Microfinance Bank Limited Description
Choice Microfinance Bank started as a diaspora story that has evolved to become a local story as well. It is a link of Kenyan Diaspora Investments to the local people’s need for small credit facilities to improve their livelihood and break the poverty cycles.
The idea traces its roots to the mid-1990s & 2000s when Kenyans migrated in masses to the U.S in search of opportunity. After years of being in the land of opportunity, there was a strong desire to create opportunities for Kenyans back home.
Choice Microfinance Bank Products and Services
Asset Mali Account
This account allows a customer to purchase and acquire business assets such as motorcycles, tricycles, office equipment, household appliances e.g. television sets, refrigerator, and utensils. It’s an avenue to acquire valuable items.
Features
• Minimum Account balance
• Flexible duration 3- 12 months
• Daily/weekly/monthly savings
• Easy asset acquisition. A client contributes up to 50% as the stake for a loan which is subject to further negotiations.
• Funds not accessible within 60 days
• Daily/weekly/monthly savings
• The asset serves as a collateral
• No Account maintenance/ledger fees
• Premium interest rates on deposits
Maendeleo Akiba Account
This account will provide the customers with a vehicle for savings and is open for everyone. The account is suitable for customers with regular income e.g. salary, pensions, rental income, etc. including SMEs and institutions.
Benefits Features
• Opening balance of Kshs.500/=
• No minimum operating amount
• Unlimited access using ATM
• No monthly maintenance/ledger fee
• Very flexible – can deposit any amount.
• Premium interest rates on deposits
• Withdrawal against uncleared effects
• Ideal for all i.e. individuals [salaried/ pensionable], groups, associations etc.
Student Account
This account is meant to meet students needs.
Features
• Minimum operating balance
• Easy opening/operating Requirements
• 24 hours access to cash through the ATM
• Unlimited withdrawals
• One must a student between 18 -25 years of age.
• Access to loans as little as Ksh. 5,000/-
• Free statement semi-annually.
• No Account maintenance/ledger fees
• Premium interest rates on deposits
School Fees Account
It’s an investment that enables parents to bequeath quality education to their children. It’s aimed at savings towards the planning, funding and general wellbeing of our children’s education. Parents are to simply put aside a little amount of money daily weekly or monthly.
Features
• Minimum Operating balance
• 24 Hours Access to funds through ATM
• Access to a loan for the parents
• The guardian operates the account on behalf of the child.
• The guardian can access soft school loans for children’s school fees.
• No Account maintenance/ledger fees
• Premium interest rates on deposits
• 1 free banker’s cheque per term
Silver Chama Account
This product will offer an attractive investment medium for Kenyans organized in Solidarity Groups/Self-Help groups (especially those by Jua Kali micro-business operators) to save, invest and grow their wealth for collective development. Women and youth will particularly be encouraged to form groups to save and to enable them to access loans.
Features
• Minimum operating balance
• 5-10 members
• Easy access to loans
• Group guarantee for individual member borrowings backed by the amount of the group’s savings held.
• Free monthly statements.
• Individual members of normal groups can borrow up to three times the level of their deposits
• No Account maintenance/ledger fees
• Premium interest rates on deposits
• Withdrawal at ATM
• Over the counter withdrawal
Wakulima Account
The account is designed to enable farmers to finance their agricultural projects and grow their yield in a season by savings towards the project which will be financed by the bank. Targets farmers who are in cattle rearing, sheep and poultry both as individuals and champs.
Features
• Opening balance
• Minimum Operating Balance for both groups and individuals
• Daily/weekly/monthly savings
• Free quarterly statement
• The client must be above 18 years of age
• Saves up to 30% of the project cost to be eligible for financing
• No Account maintenance/ledger fees
• Premium interest rates on deposits
• Withdrawal at ATM
• Over the counter withdrawal
Choice Premium Savings Account
The account will target high net worth individuals, corporates and institutions.
Features
• Personalized customer service
• Free ATM card
• Easy access to loans up to 80% of the deposit held.
• Easy access through ATM
• Account Maintenance Fees
• Account minimum balance maintained
• Premium interest rates on deposits
• Withdrawal at ATM
Faidikeni Fixed Deposit Account
This is a general account suitable for individuals, MSMEs, and Corporates with surplus or idle funds for investment/savings. These could be insurance companies, pension schemes, NGOs, Parastatal, high net worth individuals, etc.
Features
• No Ledger fee
• The fixed terms are 3,6,9,12,18 and 24 months
• The option of the individual, joint or group participation
• Access to the loan of up to 80% of the deposit
• Deposit used as collateral
Choice Current Account
This account is meant for individuals and institutions having large numbers or volumes of transactions, mainly for meeting their day-to-day business and operational requirements and need a current account for maintaining their operational fund balances.
Current Accounts can be opened by individuals, sole proprietary concerns, partnership firms, companies, clubs, associations, trusts, government bodies, co-operative societies, etc.
A current account is operated only through cheques provided by the bank. It is used to collect cheques, bills, etc. of the parties, and to make cash and clearing payments in respect of cheques issued by the account holder.
Features
• Account opening balance
• No minimum operating balance
• Unlimited access to funds using ATM
• Easy access to Overdraft facilities
• Account Maintenance Fees
• Cheque Book
Choice Kids Account
This account is geared towards a saving culture for kids by their guardians.
Features
• No minimum operating balance
• No account maintenance/ledger fees
• Access to funds through ATM
• Premium interest rates on saving deposits
Maua Savings Account
The account is designed to accommodate the employees working in flower firms in the area of our operations. The product is crafted to be able to meet their financial needs in their day to day operations.
Features
• Minimum operating balance
• Accessibility of funds 24 hours through ATM
• Unlimited withdrawals
• Accessing salary and salary advance
• The client must be a worker in the flower firms.
• The salary to have been routed in the account for 3 months to qualify for a salary advance.
• Can access a salary advance of up to 1/3 of net salary
• No Account maintenance/ledger fees
• Premium interest rates on deposits
Loans
FANIKIO LOAN (GROUP LOAN)
Group lending entails lending to individuals who are members of a self-selected group whereby the whole group is liable for the repayment of the loan. This product is designed for:- Formal and informal savings groups (Chama’s) such as self-help groups, Merry-go-rounds and other solidarity groups, Jua Kali MSE operators, Youth and women groups, Occupation based groups and Community based groups
Requirements
• Be a member of a registered group
• Copy of national ID of the borrower
• Copy of national ID of the next of kin
• Mobile details form
• Passport size photo
• Utility Bill and/or Lease agreement
• Loan form duly completed
• Business records where applicable.
Features
• Loan size from Ksh 5000 to 100,000
• Very low-Interest Rates
• Repayment period 3,6,9,12 months
• Processing Period 24 hours i.e. 1 day
• Savings 35% of the loan amount in the first cycle. This can be reduced on subsequent loans.
• Members loan to be credited to their personal accounts.
• Pre-loan Training Period for group members to access loan 6-8-weeks
LIMA LOAN (GROUP LOAN)
Focuses on smallholder farmers who lack the means and capacity to promote their products. This includes the poultry, dairy farmers, goat farming and pigs farming.
Requirements
• The client must be in a farming business. Farm remittances to be done through the bank.
• Insurance cover for theft, against livestock deaths or crop failure, death, and permanent disability
• Security – Group Guarantee (individual and group savings), chattels mortgage Lawyer fees
Features
• Initial Loan size – maximum 100,000
• Processing period 24hours – 1 day
• Repayment period of 12 months
• Very low-Interest Rates
• Repayment Mode – To be structured to fit the nature of business.
• The loan can be accessed by both groups and individuals.
• Flexible collateral i.e co-guarantors
SCHOOL FEES LOAN
Designed to enable the parents to pay their school fees for their children. This targets all children at all educational levels. Targets both groups and individuals.
Requirements
• Fees structure from school to be availed
• Account to be operated for a minimum of 3 Months for the individuals.
Features
• Loan size up to 5000 – 100,000/=
• Repayment period of 12 months
• Low-interest rates on reducing the balance
• Processing period 24 hours
• The payment to be done directly to the school.
• Frequency of payment – weekly/monthly
CHOICE MICRO-LOAN
Requirements
• The customer to have operated the business for the last 6 months.
• Active banking with choice Bank for 6 months or any other Financial Institution.
Features
• Loan size Ksh. 50,000 -300,000/- . The maximum amount of the first loan is 100,000/=
• Repayment period of 12 months
• Weekly and monthly loan repayments
• A low-interest rate on reducing the balance
• Processing period 24 hours
JITEGEME LOAN (PERSONAL LOAN)
This loan product will be offered to civil servants, TSC members, and employees of reputable organizations approved by the Board, to finance purposes such as Asset acquisition e.g. household items, solar panels, etc. Emergency needs such as school fees, medical bills, etc.
Requirements
• Must be a civil servant, an employee of an organization with a Memorandum of understanding with CMFB approved by the management and the board.
• The salary must pass through an account with ChoiceMFB and routed for about 3 months prior to loan application and continues processing the loan through CMFB.
• A letter from employer committing to remit salary through Choice MFB account for the duration of the loan.
• Chattels and Affidavit for pledges where applicable.
• Guarantee of 2 fellow colleagues processing the salary through CMFB.
Features
• Loan size 10,000-100,000/=
• Repayment Period 3 to 24 months.
• Loan Processing period within 24 hours
• Frequency of payment- Monthly
• Very low-interest rates
SALARY ADVANCE
This product provides advances to salaried customers to meet their financial requirements. It’s a short term financing for Employees.
Requirements
• The salary must have been remitted through the account for the last three months
• Must have an irrevocable letter from the employer committing to remit salary to Choice MFB for the loan duration.
Features
• Loan size 5,000 -100,000
• Loan Processing within 24 hours
• Flexible Repayment period between 3 to 12 months
• Monthly loan payment
MKOPO OKOA LOAN (EMERGENCY LOAN)
This product provides advances to salaried customers to meet unanticipated financial requirements. It targets employees only.
Requirements
• Salary advance to be repaid within one month
• The salary must have been remitted through the account for the last three months
• Must have a letter from employer committing to remit salary to Choice Microfinance Bank
Features
• Loan issued of up to 50% of net salary ranging from 5,000-100,000
• Loan Processing within 24 hours
• Repayment period 1 month
• Competitive Interest Rates
• Monthly loan payment
BIASHARA DHABITI LOAN (BUSINESS LOAN)
Business loans are loans to individual entrepreneurs and business entities to cater for diverse business requirements.
Requirements
• Must have been a Choice MFB customer for at least six months and actively operating their account. Or banking with any other institution.
• Security accepted includes – property title deeds, shares from publicly quoted shares, life insurance policies, motor vehicle logbooks, and personal guarantors. The facility must be fully secured. Joint registration, legal charging, and fixed deposit.
Features
• Access to loans from 300,000 to 500,000/=
• Low-Interest rates on reducing the balance
SUPA BIASHARA LOAN (BUSINESS LOAN)
This product provides funds to finance the working capital requirements of business entities as well as other business requirements.
Requirements
• Customer to actively operate an account with the bank for 3 months
• The vehicle must not be more than 8 years old.
• A Quotation is required in case of the other assets. The payment is done directly to the supplier.
Features
• Access to loans from 500,000 to 2M subject to verifiable ability to repay.
• Low-Interest rates on reducing the balance
• Loan processing within 48 hours
• Monthly loan repayment.
• Flexible repayment duration
CHOICE ASSET FINANCE (BUSINESS LOAN)
Requirements
• Be a member of a registered group
• Copy of national ID of the borrower
• Copy of national ID of the next of kin
• Mobile details form
• Passport size photo
• Utility Bill and/or Lease agreement
• Loan form duly completed
• Business records where applicable.
Features
• Loan size from 300,000/=
• Flexible repayment period.
• The very low-Interest rate on a flat rate
• The maximum processing period is 48 hours
• Frequency of payment – monthly
• The financed asset becomes security for the loan.
INSURANCE PREMIUM FINANCE (IPF LOAN)
Requirements
• 20% of the premium amount will be paid upfront in cash or cheque to the MFB
• Security will be postdated cheques will be obtained for the loan installments
• The customer to have actively operated an account with the bank for 3 months.
Features
• Loan size– 80% of the premium payable
• Interest payable – 10% flat rate with a minimum of Kshs.5,000/=
• Repayment period – 1 to 10 months
• No loan application fees
BANK GUARANTEE
A Bank Guarantee is a specified amount (limit)payable by CHOICE MFB to a beneficiary (seller or supplier) in the event the counterparty( the applicant) defaults on the underlying contract in which the MFB is the guarantor.
Requirements
• The client must be a registered company
• The client must maintain an account with Choice
• KYC rules apply
• Applicant to indemnify CHOICE MFB from any claims by executing an indemnity agreement
Features
• The guarantee amount is only payable if the counterparty defaults under the contract
• Processing period 48 hours
• Minimum bank guarantee of Ksh.5000/= with a maximum amount of Ksh. 5M
• Extension of period 2.5% on the guaranteed amount per quarter.
BID BOND
A Bid Bond or Tender Security is a facility availed to clients for presentation to Procuring Entities in a tender process, in support of the client’s bid. CHOICE MFB will issue bid bonds/tender security to enable tendering firms to obtain these guarantees for the contracts they bid for.
Requirements
- Applicant to avail copy of Tender Document
- An applicant may or may not maintain an account with CHOICE MFB
- Applicant to fill in a Bid Bond Application Form
- Client to execute an Indemnity Agreement indemnifying CHOICE MFB from any claims, losses, or other liabilities that CHOICE MFB may suffer arising out of any breach of performance by the bidder.
Features
- Maximum amount KES 5M
- No collateral required
- The maximum period of 3-months
LPO FINANCING
This product enables contractors or suppliers to service their orders without having to struggle for funds to service the orders.
Features
• The short processing period of up to 48 hours.
• 100% financing.
• Applicant need not be an existing ChoiceMFB account holder.
• The competitive interest rate on a flat rate.
CHAMA LOAN
This loan product caters to registered investment groups who need a loan as an entity to advance their development agenda.
Features
• Loan of size Ksh. 500,001 to Ksh. 3,000,000
• Repayment period up to 24months
• Attractive interest rate
• Processing period 24hours after approval
• Free training
• Frequency in repayment – weekly/monthly
CHEMSHA BIASHARA
This loan product is geared towards small-scale traders who are in the business of fast-moving goods and require float for working capital.
Features
• Loan of size Ksh. 1,000 to Ksh. 10,000
• Repayment period 1 month
• Processing period 1 hour
• Frequency in repayment – daily/weekly
Choice Microfinance Bank Limited Contacts
Postal Address: P. O. Box 18263-00100, Nairobi
Telephone: +254203882206, 203882207, 0736662218
Email: info@choicemfb.com, enquiries@choicemfb.com
Website: www.choicemfb.com
Physical Address: Siron Place, Magadi Road, Ongata Rongai
Date Licensed: 13th May 2015
Branches: 1
We endeavor to keep our content True, Accurate, Correct, Original and Up to Date.
If you believe that any information in this article is Incorrect, Incomplete, Plagiarised, violates your Copyright right or you want to propose an update, please send us an email to informationcradle@gmail.com indicating the proposed changes and the content URL. Provide as much information as you can and we promise to take corrective measures to the best of our abilities.