Have you ever wondered what the Youth Enterprise Development fund is all about? In this article, we will let you know all you need to know about this fund.
Here is what the article is about
- What is the Youth Enterprise Development Fund?
- What types of Loans does Youth Enterprise Fund offer?
- Does the Youth Enterprise Fund Offer other services?
- How do I apply for a Loan at Youth Enterprise Fund?
What is the Youth Enterprise Development Fund?
The Youth Enterprise Development Fund is a government-owned corporation that is managed by the Ministry of Public service, gender, and youth.
The main aim of this corporation is, therefore, to advance the potential of the youth in Kenya through the creation of jobs through entrepreneurship. As a result, making youths to be critical contributors in nation-building.
What types of Loans does Youth Enterprise Fund offer?
There are various loans offered by the Youth Enterprise Fund to the youth in Kenya. Some of these loans are provided to registered groups, while others are provided to registered youth companies. These loans are as discussed below:
Local Purchase Orders Financing (LPO)
If you have seen a government tender that you are fully capable of delivering, but you lack the fund, then there is a loan to help you do this.
Moreover, this Loan finance 70% of the value of your LPO with the loan, attracting a very low-interest rate of only 1.5% after only 90 days.
In addition to the interest rate charged, one will also be charged a commission of just 6.5%.
However, it’s worth noting that this loan requires security, which can be through bank guarantees or a letter of underwriting.
In addition to all the other requirements to access a loan from the Youth Enterprise Development Fund, one must present the LPO during application.
2. Vuka loan – Business Expansion Loan
In addition to the LPO loan, the Youth Enterprise Development fund also offers a business expansion to youths already operating their businesses.
Just like the first loan, this loan has to be secured by one can borrow up to KES 500,000 from KES 100,000.
Moreover, it is worth noting that the interest rate charged by this fund is meager, even when compared to the best banks offering the lowest interest rates. Therefore instead of overburdening yourself with huge debts from online loans, just apply for a loan from this fund.
The interest rate charged for this loan is at 6%, with an additional 1% management fee netted off from the loan amount.
What’s more, is that one is financed up to 70% of the total cost of the asset.
This is a perfect deal!
3. Constituency based loans
The good news is that if you are a youth running a business at the constituency level. This fund also has got you back. The various loans offered at this level include:
- Swift Loan – this loan is for all new users of the youth enterprise development fund products. This loan is being provided to registered groups, with the first member being lent up to KES 25,000 for nine months.
- Inua Loan – If you are a group running a business that needs expansion, then this loan is for you. These groups can borrow up to KES 200,000.
- Special Loan – Groups running agricultural business projects are offered this loan, with them being able to borrow up to KES 500,000 for 36 months.
- Rausha loan -This is for groups that are looking to start a startup. A group can, therefore, borrow up to KES 100,000 with a grace period of 3 months.
Does the Youth Enterprise Fund Offer other services?
Yes, it does.
Apart from offering loans to youth groups and youth, the Youth Development Enterprise Fund also provides other services to the child and their businesses.
These services include:
- Providing entrepreneurship training to the youth. This is major to ensure that they run their businesses in a way that it is income-generating.
- Market linkage and support – this is done through organizing trade fairs and expos so that the youth can market their products.
- Moreover, the Youth Enterprise development fund also facilitates the youth to get employment abroad, therefore, helping reduce the unemployment issue.
- The fund further aims at constructing trading spaces for the youth to help minimize their operating costs.
How do I apply for a Loan at Youth Enterprise Fund?
The process of applying for a loan at the Youth Enterprise development fund is straightforward. Follow these simple steps, and you will be on your way to greatness.
- First, keep in mind that you can apply for these loans either as an individual or as a group (registered).
- Pay a visit to the Youth Enterprise Fund office in your locality.
- Collect the loan application forms, fill them, and attach all the documents required. After filling the forms, return them fully completed to the officer who you picked from.
- You will be guided over the next steps by the loan officer
- After vetting and upon receiving the funds, you will be trained and guided on how to make your payments on time.
- Be sure to use this loan for the purpose you had applied it for
Conclusion on the Youth Enterprise Development Fund
In the end, it is essential to use this fund as an avenue to grow your business rather than change your lifestyle.