Ever found yourself in dire need of money? Maybe an emergency, and unable to go through the tedious loan application from a bank? Today, most Kenyans more so those unemployed, survive on mobile loans. It’s hard to qualify for a loan in Kenya from a local bank. This has given rise to mobile loan apps offering soft loans at lower interest rates compared to shylocks and banks.
It’s now faster and easier to get a loan in the palm of your hand within seconds or minutes of your application. Customers can borrow from as low as Ksh 50 up to Ksh 1,000,000 with an instant approval with money deposited directly into their Mpesa accounts. To access any loan you must not be listed on CRB. Here is how to check your CRB status.
Here are the top 10 best loan apps in Kenya.
1. Mshwari
Mshwari was found in 2012, a partnership project between Safaricom and NCBA Bank. The minimum amount that you can borrow is Ksh 100. You can qualify for a higher loan by repaying on time and by increasing your savings in your Mshwari account. The repayment period lasts for 30 days with an interest rate of 7.5%. To qualify you need; first be a Safaricom subscriber, active Mpesa account for a period of 6 months and an Mshwari account. Your loan will be processed in less than five minutes.
2. KCB M-Pesa
KCB Mpesa is a partnership project between Safaricom and Kenya Commercial Bank (KCB) launched in 2015. The minimum amount you can borrow is Ksh 50 all the way up to Ksh 1,000,000. The loan interest rate is 1.16% per month with a one-off negotiation fee of 2.5%. The cost of a one-month loan is 3.66% with excise duty applicable to fees.
The loan is disbursed KCB Mpesa menu on your phone. KCB Mpesa is also available through the KCB app. To qualify you need to have an active Mpesa account for at least 6 months. KCB Mpesa assesses your loan repayment behavior, saving history and monitors your Mpesa transactions activity to determine the amount of loan limit for you.
3. Branch
Branch was launched in Kenya in 2015. The minimum amount you can borrow is Ksh 1,000. To qualify you need an active Mpesa account and a genuine active Facebook account with a username matching the name on your National ID card. On successful application, your loan will be disbursed though Mpesa. The interest rate is based on repayment of the weekly installments, ultimately increasing the credit score and decreasing the interest rate.
4. Tala
Tala, previously known as Mkopo Rahisi, was launched in 2014. The minimum amount you can borrow is Ksh 500 up to a maximum of Ksh 50,000 at an interest rate of 15%. To qualify you need a good Mpesa Track record in order to access their loans. The app depends on your loan repayment behavior and on reading your Mpesa transaction activities. The loan is repaid in weekly installments for a period of 3 weeks.
5. Timiza
Timiza is a loan product from Absa Bank Kenya. You don’t need an Absa account to use the Timiza app. It allows you to save using your Mpesa account and in case you don’t have a smartphone you can access its services by dialling *848# on your mobile phone.
6. Shika
Shika loan is a project of Alternative Circle, a credit company in Kenya. They offer loan limits between Ksh 500 and Ksh 20,000. To qualify, you need to be a Safaricom subscriber. A 15% facilitation fee is charged with the loan amount. The loan should be repaid in a period of 30 days. In case of late payment, a 10% rollover fee is charged on the owed amount. A rollover exceeding 60 days will attract a CRB listing.
7. Zidisha
Zidisha is a peer to peer lending platform. It is a platform for lending money to individual or business organizations via an online platform that matches creditors directly to borrowers. Zidisha is a non-profit organization which connects borrowers from Kenya and across Africa, with creditors from North America and Europe.
To qualify for a loan from Zidisha; you need to be employed or have a business, have a good credit score record, have a good online presence, have a Facebook account with good social connections, have good conduct and reputation, reside in a country where Zidisha currently operates and be able and committed to posting frequent updates and reviews regarding the use of the loan and progress of the business on the Zidisha website.
8. iPesa
iPesa loan app offers credits from as low as Ksh 500 to Ksh 50,000. The shortest tenor for credits is 91 days while the longest is 180 days so you will have enough time to repay your credit. Their interest rate stands at 12% with no service fee. Once you download the app register with your M-Pesa number and then apply for the exact amount, you need. If you repay your credits on time, your credit limit will be set at Ksh 50,000.
9. Kopakash
Kopakash credit app applies a service based on the product you choose, and it is in return used to assess your credit score. The credit amount can range from as low as Ksh 1,000 to Ksh 50,000 and the repayment tenor has a minimum of 91 days and a maximum of 120 days. The loan amount can be disbursed directly into your Mpesa or even bank account.
10. OKash
Okash credit app provides loans of up to Ksh 70,000. Using the personal details you provided, OKash determines your credit limit and the period within which you have to repay. The duration of the loan ranges from 91 days to 365 days. OKash uses data from your phone including your handset details and financial transactions messages, and your reason for borrowing to determine the loan offer suitable for you.
Hi, i really like the information you have provided in this article. The information has helped me identify the different mobile loan apps available in the country. With the details on their interest rates, i have been able to make a decision on which ones i will be going to when i need financial help.