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IPF is a short-term loan product designed to pay for non-life insurance premiums to an insurance company on behalf of a bank customer. The bank pays the customer’s insurance premium to the insurance company and then receives monthly repayments from the clients until the facility is fully paid (Max.10) months.

Features

Covers for Both Borrowing and non Borrowing Clients

IPF covers borrowing customers and non borrowing clients who have assets to insure.

IPF for Non-borrowing Customers shall always be Guaranteed by the Insurer

IPF for Non-borrowing customers shall always be Guaranteed by the insurer. KCB Bank will be registered in the policy as the financier as well as having the right to terminate the policy and receive the refund of the unutilized premium.

On Customer defaults, the Discretion on when to Call on the Guarantee is left to the Bank

If a borrowing customer defaults, the discretion on when to call on the guarantee is left to the bank as the bank stands to lose should cancellation be done.

Collateral:

  • Insurance Guarantee and indemnity from the Bank’s approved insurance companies.
  • Signed IPF agreement. Pricing: UGX 6.5% p.a. (Flat fee) and USD 4% p.a. The rate can reduce if the tenor is less than 10 months.

What We Need From You*

  • No history of returned cheques in the last 6 months.
  • Positive credit rating report – Credit reference bureau report.
  • In the event of default, the policy will be cancelled 15 days after the date of default (For non-borrowing customers).
  • Payment of one (1) month premium instalment upfront for new to bank customers and customers whose accounts are not funded. This may be waived for others.
  • For Non-KCB Bank borrowing customers, an internal non-transactional account is to be opened for loan repayment.
  • Post-dated cheques for the 10 monthly instalments.
  • Only current insurance policies should be financed.
  • Customer to provide the bank’s standard KYC i.e., TIN certificate, Certificate of incorporation / registration, Memorandum and Articles of Association for incorporated entities, National ID etc.
  • Bank statements for the last 12 months for non- borrowing customers and new customers.
  • The Business should have been in existence for at least 12 months.
  • Duly completed & signed IPF agreement.
  • Guarantee and indemnity letter executed by the insurance company covering the total exposure at risk.
  • The policy to be cancelled only after KCB Bank’s consent and if the circumstances of cancellation are beyond the borrower’s interests then procedures will be advised to recover as a liquidated debt.
  • Multinationals must hold an account with KCB Bank.

Interested in Insurance Premium Financing or have a question?

I am an existing KCB Bank customer

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