Cellulant, Stanbic Bank To Offer Loans To Musicians Through Skiza Tune Royalties
Cellulant has announced a partnership with Stanbic Bank that will see artists in their portfolio access bank loans from their Skiza ringtone royalties.
Under the agreement, artists will be able to access direct capital for their different music project initiatives including recording, video production, event sponsorships, album production, marketing and advertising. The loan facility will also enable artists to purchase homes, land, construct, purchase cars as well as personal borrowing exclusively from Stanbic Bank. The royalties earned will guarantee the loans through a monthly check-off repayment plan, being managed by Cellulant.
Most artists receive their royalties from SKIZA. Unfortunately a majority have been seeking alternative means to get direct access to capital for their different project initiatives.
The loan facilities under cellulant – stanbic partnership are:
- Unsecured Personal Loans
- Car Loans
- Home Loan and Shamba Loan (Vacant Land Purchase) and Construction Loan
For one to be considered for the above facility they should be a Cellulant Skiza artist, earn more Ksh25,000 in royalties per month, have a clean Credit Reference Bureau record, show a consistent revenue growth and provide a record of Skiza payments for at least 6 months.
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“This agreement with Stanbic Bank is our way of showing our musicians that we are still invested in their success and that we understand the fundamentals of growing the music business in Kenya. Now is the time to invest in our musicians as the global music industry looks towards Africa for inspiration,” said Cellulant’s co-founder and chief executive Ken Njoroge during the product launch.
Over 5,000 artists are currently signed on Cellulant’s ringtone platform since it launched its Lipuka service in 2004, run under Safaricom’s Skiza umbrella.
Lipuka allows subscribers to download their favorite ringtones whilst empowering artists to earn royalties, paid to them by Cellulant. Currently, more than 11 digital content service providers (PRSPs) work with Safaricom to both manage and collect revenues on their behalf.
“This is a multi-million shilling industry that has been neglected for a long time with no financial solutions tailored for musicians. We acknowledge that the royalties are a source of income and are now providing products based on this that will go a long way in enabling artists to accelerate their music careers,” added Stanbic Bank’s head of personal banking Dr Silpah Owich.