Insurance Premium Finance
Insurance Premium Finance is a short term loan product designed to facilitate financing of insurance premiums. This is given against the customer’s insurance premium bill for a maximum of 10 months with a minimum finance of KES. 25,000.
The IPF loan involves a tripartite agreement between the customer, the insurance company(guarantor) and the bank(financier).
Requirements
- Duly completed application form which includes the IPF agreement
- Copy of National ID/PIN for individual applicants
- Copy of Certificate of Incorporation/Certificate of Registration for business borrowers
- Company PIN
- Copy of Memorandum & Articles of Association, Partnership deed or other constitutive document as per registered entity type for corporate entities
- Board Resolution to borrow for Corporates
Fees & Rates
- Nil commitment fees
- Rate of interest is 4.0% above the Central bank rate (CBR) pa. The IPF card rate from this rate ranges between 1.75% to 5.30% for the period between 4 to 10 months
Features
- Finance up to 100% of the premium amount
- Minimum repayment tenor of 4 months and a maximum of 10 months
- Repayments are via equal monthly installments (EMIs), payable through postdated cheques, automatic debits (for HFC clients) and standing orders
- Minimum financing of KES 25,000
Benefits
- Lifts the burden of lump sum insurance premium payment
- Enhances business cash flow management
- Immediate access to annual insurance cover
- Flexible repayment periods for the insurance premium
