SMEP has two main product categories of credit and advances facilities:

• Group Loans
• Retail Loans

 

Loans that are advanced to micro and small entrepreneurs who have registered with a self-help group and have complied with SMEP and group rules and regulations.
 
These are loans,

• whose average size for initial loans to individuals is shillings 25,000 and the maximum size is shillings 3 million.  
• not secured by conventional collateral such as land title deed, vehicle log-books etc.
• that largely go towards financing very small businesses or micro enterprises operated by low income people and located in areas where poor and low income people reside.

 
Currently, microfinance loans are ‘Group-Based’, that is provided to individuals through groups that are either formed by SMEP or are pre-existing. The main purpose of the groups is to facilitate the management and administration of very small loans. The groups allow the MFI to attain economies of scale, as well provide for alternative collateral systems.