Cooperative secures 6.3 billion EU shillings bank loan for SME lending
Co-operative Bank #ticker:COOP has received 6.3 billion shillings (50 million euros) from the European Investment Bank to lend to small businesses to help them recover from the impact of the coronavirus pandemic Covid-19.
Co-op Bank chief executive Gideon Muriuki said micro, small and medium enterprises (MSMEs) with up to 250 employees can apply for the loan.
The long-term loan will be repayable in seven years and will help MSMEs finance the acquisition of tangible business assets, working capital, development of distribution networks, innovation and business research.
Mr Muriuki said the loan was part of the bank’s efforts to help Kenyan businesses recover from the challenges of Covid-19.
“The credit facility will be available up to a maximum of 1.5 billion shillings per customer for a maximum term of seven years,” he said.
“The Co-operative Bank’s commitment to the SME sector in Kenya will ensure that this facility will be available immediately,” Mr. Muriuki added.
The European Investment Bank, the lending arm of the European Union, has been a partner of the lender in financing investments since 2003.