|
Under the Commercial Loan programme, loans are advanced to well-established tourist enterprises including high-class hotels and travel organisations at commercial rates of interests.
(a) Development loans
KTDC provides development funds for new start-up hotels, lodges and other facilities. Most properties enjoy an equity element to reduce the impacts on lending costs on their viability and sustainability.
(b) Extension and modernization loans
Currently, many tourism facilities require rehabilitation and addition of facilities in order to meet guest demands. KTDC has continuously provided such funds at concessional terms. The destination Kenya remains competitive through this facility. In addition to the funds, the corporation provides business advisory services.
(c ) Aviation, tours and travel loans
Equity and loans funds are provided for purchase of cars and for working capital. KTDC is associated with the local airlines and a number of aviation activities. A number of tour and travel operators have benefited and continues to enjoy KTDC funding and business advisory services
(d) Business loans
Funding is extended for production and working capital for curio shops and export of handicrafts.
2.0 LOAN FUNDING
Revolving Fund Loans Program
The objective of the fund is to provide concession credit to investors in the tourism industry. Loans are, therefore, provided to new tourist enterprises at concessional interest rate of 14% to assist the less experienced private sector investors.
(ii) Commercial Fund Loans Program
Under this program, loans are advanced to tourist enterprises including high class hotels and travel organizations at an interest rate of 15%.
3.0 REPAYMENT PERIOD
Loans are repaid in a maximum period of 10 years except for business loans which are repaid in 3 years (36 months).
To qualify for our programmes, the following is a run down of our basic requirements.
4.0 FEES
4.1 Loan Application Fee
Loan application fee of Kshs 3,000/=. This fee is non-refundable.
4.2 Loan Appraisal Fee
Appraisal fee of Kshs. 50,000. This fee is non-refundable and is utilized towards costs related to the evaluation of the project, including a full, physical site visit.
4.3 Commitment Fee
This fee will be paid at a rate of 1% of the total amount borrowed after acceptance of the Loan Offer.
4.4 Other Fees
Legal fees, valuation fees and any other charges related to Management shall be payable directly to the respective third (3rd) Party.
5.0 LEGAL INFORMATION
The Legal status of the applicant Company shall be required as follows: -
5.1 Certificate of Incorporation
5.2 Memorandum and Articles of Association
5.3 Board Resolution to borrow
6.0 PROJECT INFORMATION
The applicant will:
6.1 Furnish the Corporation with a detailed Feasibility Study Report.
6.2 The Feasibility Study Report should provide adequate background information of all Directors of the Company including age, percentage share holding, occupation, education, experience and any other relevant information.
6.3 Pledge adequate security for KTDC loan and furnish us with a copy of the title deed that must be free of all encumbrances. The security value should be at least 30% over and above the principal loan amount.
6.4 Provide a letter authorizing the Corporation to commission its official valuers to prepare a report valuation of the pledged security. An undertaking to pay the valuation fees directly to the Corporation valuers should also be provided.
6.5 Provide any management and, or marketing agreements executed by other companies providing clients to the business.
6.6 Provide evidence of an Insurance cover of the pledged securities obtained from an insurance company approved by the Corporation. KTDC interest must be endorsed thereon.
6.7 Indicate current indebtedness of the Applicant Company and any additional information that may be considered necessary to assist in the evaluation and approval of the loan request.
6.8 Provide details of the applicant’s equity participation that must not be less than 25%, of the total project costs.
6.9 Provide bank statements, management and or audited accounts for at least the last three (3) years.
6.10 An Environmental Impact Assessment must be provided to the Corporation on submission of the feasibility study.
Where our requirements meet your needs, we advise that the above information be provided in full to expeditiously evaluate the application.
Should you require further information, please do not hesitate to call us for an appointment or visit our offices at your earliest convenience.
|
