Nyeri County has reduced its loan repayment rate for the Enterprise Development Fund (EDF) from seven to five percent in a bid to offer affordable financing to small scale businesses amid the Covid-19 period.
Trade Executive Diana Kendi said the county government had set aside a Sh30 million for the fund.
She urged residents in existing small-scale enterprises who could not access loans from financial institutions to take advantage of the state loan.
“The loan is available to any business person who is a resident of Nyeri. However at the time we are mainly focused on promoting small entrepreneurs who are finding it hard to survive during this period,” she said.
The minimum amount for which an individual is allowed to apply for is Sh50,000 while the maximum is Sh500,000.
However, groups or co-operatives are allowed to borrow up to a maximum of Sh1 million.
Depending on the applicants, Ms Kendi said the loan takes a maximum of three days to process.
The repayment period for beneficiaries of the loan is up to 24 months.
According to the Trade Executive, the county disbursed Sh16 million from the fund during the last financial year.
She, however, noted that the kitty was not open to firms trying out novel ideas as such businesses took a long period to be able to repay.
“The loan is meant to be a revolving fund and for it to operationalise borrowers have to pay back in time so that we can be able to distribute it to other successful applicants,” said Ms Kendi.
Interested residents are encouraged to drop off their applications at the offices of their ward administrators.
The county has also provided requirements and the process of application on its website and its Facebook page.