Kenya’s economic vitality is significantly driven by its grassroots enterprises and community groups, often known as chamas. These collective entities play a crucial role in fostering local development and economic activity.
Despite their economic contribution, these small and medium sized enterprises often face limited access to credit, compounded by low financial literacy and informal operations.
Recognising this immense potential, and the critical need for capital, financial inclusion, and a robust savings culture within these groups, Equity Bank has strategically positioned its Pamoja Banking to offer a comprehensive suite of financial solutions designed to empower groups and individuals.
Pamoja Banking offers tailored financial solutions, primarily targeting registered groups of 12-40 members across various sectors like agriculture, trade, and investments. These groups can be undergoing Business Development Services trainings offered by Equity Bank Kenya, registered with the bank, other MFIs and Banks for at least one year.
It also empowers individual micro-entrepreneurs aged 18 and above, who gain financial access through their group affiliations and individual members looking to start or expand their businesses.
Benefits of Pamoja Banking products
Pamoja Banking offers several key advantages that extend beyond traditional credit provision. It cultivates disciplined saving habits within groups and ensures accessibility and convenience for joint and group accounts.
Furthermore, groups gain remarkable flexibility by being able to access up to three loans simultaneously. Members also benefit from free training that equips them with essential financial management knowledge, complemented by guidance from Equity’s relationship managers on productive fund utilization.
Additionally, the service provides access to 24-hour banking through a Multiple Approval Service for Joint & Group Accounts.
These advantages are delivered through a comprehensive suite of Pamoja Banking products, each designed to meet specific financial needs. These are:
Fanikisha Jamii Loan
Supports household needs, from school fees to medical bills, with amounts up to Kes 2 million and flexible repayment terms.
Pamoja Kilimo Loan
A lifeline for the agricultural sector, providing up to Kes 10 million for production, farm inputs, and machinery, with a repayment period extending to 60 months.
Pamoja Biashara Loan
Fuels entrepreneurship with up to Kes 10 million for startups, stock financing, and business expansion, repayable over 36 months.
Pamoja Investment Loan
Facilitates significant investments like movable asset financing, land purchases, and micro-housing, offering up to Kes 10 million with a generous repayment period of up to 120 months.
Beyond these core offerings, Pamoja Banking extends its reach to specialized areas:
Group Insurance Premium Financing
Supports various insurance payments (health, crop, motor, etc.) up to Kes 1 million, helping groups manage risk effectively.
Chama Investments Loan
Empowers local micro-entrepreneur groups to invest collectively, with substantial loan amounts up to Kes 100 million for project financing and real estate development.
Diaspora Chama Investment Loan
A strategic initiative targeting Kenyans in the diaspora, enabling them to collectively invest back home, with facilities up to Kes 200 million. This taps into the significant remittances flowing into the country and channels them into productive investments.
For groups and micro-entrepreneurs keen on leveraging structured financial solutions, exploring the detailed provisions of such initiatives is a crucial next step towards sustainable growth.
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