Digital lending in Kenya has been on the rise in the past few years. Many financial institutions and third-party lending companies have made it possible for Kenyans to access credit instantly. There are about 50 lending platforms currently. Many Kenyans opt for these types of loans because they can use them in case of an emergency or if they have to make quick payments. All you need is a good phone and access to the internet.
Factors to consider when applying for a mobile loan
Not all apps that purport to offer mobile loans are genuine. Some fraudsters put up fake lending apps intending to steal from applicants by requesting for registration fees. In most cases, once you send the money, the communication is cut. You’ll be left hanging, not knowing who to turn to or what to do. To avoid getting scammed, follow these helpful hints.
- Check the company profile (How long have they been in business)
- Company address (Do they have a physical address?)
- Read customer reviews
- Avoid apps that prompt you to pay some registration fees or other fees
- Check their interest rates and compare them with other lenders.
- Confirm loan duration. (one week, two weeks, one month, three months)
- Understand the payment procedures
- Customer service. (Who or how will you contact them in case of an issue?)
How to Qualify for a mobile loan
Lending depends on an individual’s credit history. Not every customer that applies gets approved. To qualify, for a loan ensure that you;
- Possess a National Identity card/passport in your names.
- Register your line with MPESA.
- Take a clear selfie
- Good credit history. Clear any outstanding loans
- Have a smartphone for downloading the apps.
- Download your MPESA statement
Advantages of mobile loans
- Quick registration process
- No collateral
- No paperwork
- Instant approval
- Easy payment procedures
Mobile loans by Kenyan banks
Financial institutions have widened their services for a more massive market outreach by providing instant mobile loans. Banks such as KCB, Barclays, Commercial Bank of Africa, cooperative bank, and Equity bank offer quick paperless personal loans. Here are a few examples of their products.
KCB Mobi loan
You must have a KCB account and registered for mobile banking. Access instantly by dialing *522#. Alternatively, customers can download the KCB app and submit a request through the app. The credit limit depends on your recent bank transactions. The Minimum you can borrow is 500, and the maximum is 300,000. No paperwork involved.
Note that KCB Mobi loan is different from their other product KCB M-PESA where registered M-PESA customers can apply for a soft loan. You don’t have to own an account with KCB to get a loan from KCB M-PESA. It also serves as a savings account.
Equity bank presents Eazzyloan to its customers that they can access through their mobiles. To access this mobile banking service, users can dial *247# and apply. Another way to obtain this loan is by using the Equitel line or downloading the app. To use this service, you must have an account with Equity since the loan will be charged to your account.
This Barclays Bank product offers a maximum of ksh100, 000. The service is available for all users, whether you have an account with them or not. They have a simple registration process that you can follow by dialing *848#. The Timiza app is also available n Google Play Store.
Popular mobile lending services in Kenya
- · Fuliza
Fuliza is a Safaricom credit service that allows you to overdraw your M-PESA account. It’s a one month loan that deducts every time you deposit money in your account. It also accrues daily fees, depending on the loan amount. You can use this service repetitively, depending on your available limit.
Tala is a trustworthy lender that has been around for long and enjoys millions of customers. They have a progressive loan limit that allows you to get an increment every time to apply. Customers can apply for a 3-weeks loan or a one-month loan.
Zenka has become popular thanks to its no interest on first loan applications. They have a transparent system and excellent customer service that ensures users get the most out of it. You can apply for amounts between Kshs 500 to Kshs 30,000. If you prefer longer payment terms, go for the 61-day loan that charges 9-10% processing fees.
- Safaricom’s Mshwari
All Safaricom users can access this service through their M-PESA accounts. You don’t have to fill any papers or download any apps. As long as you have registered for M-PESA, activate the Mshwari feature, and use it to deposit money, lock savings for a fixed time, or borrow soft personal loans.
Kenyans are very familiar with Branch thanks to its excellent lending services. It was one of the first mobile loan apps to enter the market and have established a good reputation. Customers who are not loan defaulters can use this app to apply for amounts up to Khs. 70,000. You can choose smaller amounts as per your loan limit and also select your most preferred repayment plans.
Other mobile lending apps
The list of mobile lending providers is endless. Here are a few genuine ones that continue to enjoy providing financial services to Kenyans.
- HF Whizz
- I-save mobile
- MCoop Cash
- Karibu Kash
- Afrika Loan
Getting a soft loan is no longer stressful. With all these options, you can easily access an emergency mobile loan. You are spoilt for choice and cannot miss getting a mobile financial lender that suits your needs. Remember to observes precautions to avoid getting scammed. For the best experiences, always pay your loan on time to qualify for more or another time. The last thing you need is constant nagging and reminders to pay the loan. Avoid being listed on CRB, as this will negatively affect your credit score.