The Gulf African Bank's SME division aims at offering credit facilities to SME’s both in the formal and informal sector.
Most economic activity in the world today comes from small and medium enterprises – 88% of which are non-registered with a large number being unbanked, and a greater number being unable to access credit facilities.
Access to facilities is limited due to challenges in assessing SME risk in a cost effective manner. Lenders in Kenya address this risk assessment problem either by not lending to SME’s or by requiring collateral and charging exorbitant rates. Most SME Financial statements, audited or not audited- may be of unreliable quality and veracity, and hence risk will be quantified by in-depth analysis of Bank statements and other actual business records.
To this end, Gulf African Bank in our belief that SME’s are valuable business partners; are committed to addressing their unique banking needs through continuous innovation and improvement of our SME Product suite.
Gulf African Bank defines an SME customer as:-
1. A registered business with a minimum annual sales turnover of Kshs. 3 million and a maximum annual sales turnover of Kshs. 100 million
2. Individual/business borrowing between Kshs. 1 million – Kshs. 25 million, depending on the nature of the product.
3. SME Construction Financing and, SME Collateral Management Facility, limits can stretch to between Kshs. 40 million – Kshs. 60 million per party.
4. Individuals operating businesses in their own names can apply under this category as long as they meet the other conditions for this SME/Business Banking Category.