FAULU GETS SH. 1 BILLION TO LOAN ITS CUSTOMERS.

The European Investment Bank (EIB) has granted Faulu Micro-finance Bank a Sh1 billion loan for onward lending to entrepreneurs. The new funding will enable Them issue long-term loans to small businesses, which make up the lion’s share of its customer base.

This is the second time that Faulu is borrowing from the EIB following a Sh570 million ($5.4 million) loan the micro-lender took in 2011. The Sh1 billion loan is from a new fund by the EIB.

The European Investment Bank’s new lending agreement is the first partnership with Faulu Microfinance Bank under a new Sh5.86 billion initiative to support lending by microfinance institutions across East Africa.

Faulu is looking at lending to small businesses in the agriculture, manufacturing, construction, transport and healthcare sectors. The new funding will also supplement the Sh4 billion that the bank had earlier set aside for lending to MSMEs.
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