List of Loans Offered By Tourism Finance Corporation
The types of loans provided by Tourism Finance Corporation (TFC) are listed below. Tourism Finance Corporation is a corporate organisation founded in 1965 by an Act of Parliament, Cap 382 of the Laws of Kenya.
The Corporation is a specialized Development Financial Institution (DFI) tasked with coordinating and providing cheap development capital as well as consultancy services for long-term investment in Kenya’s tourist industry.
The Corporation funds the development of hotels, non-traditional tourism projects, restaurants, renewable energy projects, health spas, entertainment centers, shopping malls, multiplexes, and other innovative tourist items.
The Tourism Finance Corporation offers the following loans.
Loans Offered By Tourism Finance Corporation
1. Asset Finance Facility
These are loans advanced to business for the acquisition of assets for tourism-related enterprises. Such loans may have similar features with other asset financing schemes popular in banks a nd Saccos.
To be eligibele for thos loan, one must have moveable assets to be financed. The assets must a slo be new.
The corporation will only finance a maximum of 80% of the pro-forms invoice value of the asset. The buyer will thn finance the remaining percent.
The loan can be repaid up to a maximum period of 4 years.
2. Development Loan
These are loans made to fund the construction of new tourism facilities.
- The client must contribute at least 30% of the project cost in cash, with the remaining 10% in cash.
- If the property on which the project will be built is leased, the remaining lease period cannot be shorter than 10 years.
- The loan length will be for two-thirds of the remaining lease term, up to a maximum of 10 years.
The corporation will fund up to 70% of the entire cost of the project, up to a maximum of Kshs 100,000,000.
Period of Repayment
Up to a maximum of ten years.
3. Energy Efficiency Facility
These are loans made to tourism facilities in order for them to use less energy to deliver products and services. This will allow the facilities to minimize energy costs, increasing earnings and allowing them to satisfy their commitments in servicing TFC loans.
The client must contribute at least 30% of the project cost in cash, with the remaining 10% in cash.
The corporation will fund up to a total of Kshs. 100,000,000.
4. Expansion And Refurbishment Facility
These are loans made to extend and renovate existing tourism amenities.
The loans will be available to businesses that have been in operation for at least three years.
The corporation will finance up to 70% of the total project cost and a maximum of Kshs 100,000, 000
Up to a maximum of ten years
5. Working Capital Facility
This is a kind of loan advanced for working capital.
The loan is issued to businesses that have been running for a atleast three years.
The maximum loan amount is Kshs 10, 000, 000.
The maximum lon repayment period is 5 years.
Tourism Finance Corporation Lending Terms
The following fees are applicable to all loan facilities;
1. Fee for Appraisal
The appraisal fee is 1.5% of the approved loan amount and is due upon approval before distribution. A minimum of Kshs50,000 will be required.
2. Fees for Commitment
After accepting the loan offer, commitment fees of 1% of the approved amount will be applied. The commitment fee is due prior to disbursement. Once paid to the corporation, all costs are non-refundable.
3. Interest Rates
On a declining balance, interest is imposed at a rate of 11% per year.
Tourism Finance Corporation Contacts
Located at Utalii House on Uhuru Highway, Nairobi.
Contact information: +254 20 3224119, +254 20 3224115
Email address: Md@tourismfinance.go.ke
LinkedIn Profile: https://ke.linkedin.com/in/tourism-finance-a97504167