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Business startup loans in Kenya – Meaning and how to apply

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Business Startup loans in Kenya are affordable and accessible. You have been thinking of starting up a business and you don’t have the cash to fund it, think no more. This article is for you. Kenya has different modes and channels a borrower can source for funds to start up a business.

In addition, as a startup, taking up a loan is one thing, repaying is another. Go for loans you can wisely utilize and repay within a short while and have your business still moving.

We will take you through business startup loans in Kenya and how to access them.

business-startup-loans-in-kenya

What are business startup loans

Business startup loans are loans made available by different financial institutions and private lenders in Kenya for the purpose of funding a business.

The borrower qualifies, applies and then gets approved and has the loan for the sole purpose of starting up a business.

What you need to know about business start-up loans

There are things you need to know about business startup loans. They are:

  1. Quick loan application procedure
  2. Easier to qualify
  3. Easier to meet up with the requirements
  4. Transparency and honesty of lenders in revealing extra hidden fees.

How to apply for business startup loans in Kenya

To apply for a business startup loans, follow the procedure:

  1. Avail yourself, study and compare lenders
  2. Visit the financial institution or lender’s website
  3. Find out the eligibility and requirements
  4. Know the documents to submit and get them ready
  5. Fill the application form either online or offline
  6. Visit the lenders branch and submit the application 
  7. Attach your documents
  8. Wait for approval and loan disbursement

Ways of accessing business startup loans

There three basic ways of accessing business startup loans in Kenya. They are:

  1. Mobile lending
  2. Micro lenders and Credit union
  3. banks

Mobile lending business startup loans in Kenya

There are different mobile lenders offering loans to business startups in Kenya. They as follows:

  1. M-shawari
  2. Tala
  3. Branch
  4. KCB M-pesa
  5. Grofin
  6. Equitel
  7. Kopa Chapaa

Micro lenders and Credit union for business startup loans in Kenya

Micro lenders and Credit unions also give out business startup loans. They include:

  1. M-co-op cash
  2. Bitband- peer-to-peer lending
  3. Kiva- Peer to peer lending

Banks for business startup loans in Kenya

Banks for business startup loans are:

  1. Equity groups
  2. Chase banks
  3. Family bank
  4. Kenya commercial banks
  5. Standard chartered banks
  6. Barclays banks
  7. Prime bank

Credit score for a business startup loans

Generally, you need 680 and above for banks to give you a business startup loan. But you will still find lenders that will give you a short-term loan to start your business at 550 and 600 credit score.

How much loan can you get as a business startup

The amount given by lenders to borrowers for starting a business differ from lender to lender. Typically, you can borrow from ksh. 1000 to ksh. 30000. It depends on the lender or the financial institution.

Documents needed for business startup loans

The documents needed for business startup loans are:

  1. National ID
  2. Proof of address and recent passport
  3. Certificate of registration for some lenders.

Is it difficult to get a business startup loan?

It is not hard to get a business startup loan. The issue is that some banks  believe that lenders require cash flow to be able to make payment and not default.

General ways of repaying business startup loans

Repaying business startup loans differ from lender to lender. The general way of repaying it includes:

  1. Open you M-Pesa account 
  2. Choose paybill
  3. Enter the business number of the loan platform 
  4. Input the amount you want to repay
  5. Enter your M-Pesa pin
  6. Click ok and send.

You can also choose to transfer from your bank account. It all depends on the lender’s mode of loan repayment.

Conclusion 

Failure to access bank loans should not be the end of the road for your small business. Check out other means. Carry out your study well. Thanks to the various online lending options that exist in Kenya today. 

Best Logbook Loans in Kenya

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Logbook loans in Kenya are a type of secured loan where the borrower’s vehicle logbook (vehicle registration document) is used as collateral to obtain a loan. 

This type of loan is popular in Kenya, where individuals can leverage their personal vehicles to access quick financing. Sometimes people call them emergency logbook loans because they are the easiest way to access credit for emergencies.

5 Best Logbook Loans in Kenya 

Logbook loans in Kenya

We know that the concept of “best” can vary depending on individual needs and preferences. However, we can provide you with the best logbook loans based on our personal experiences with some of these loan lenders in Kenya.

  1. KCB Logbook Loans: They are one of the best banks in Kenya that gives logbook loans to eligible borrowers who meet the requirements. Some of their requirements include having an active KCB account that is a minimum of three months, original payslips, Kenyan ID and other documents. You can check out their sites for more details on this type of loan.
  1. Family bank logbook loans: The family bank is one of the best great Asset financiers in Kenya with good reviews online. They offer asset loans to business account holders and are intended to assist in the acquisition of assets. You are required to present the original copies of your logbook to access the credit. They also have their unique requirements which you can check out via their website.
  1. NCBA logbook loan: The bank launched their logbook loan in 2021 and since then they have been giving out credit to borrowers who meet the requirements. This loan type enables borrowers to access up to 50% financing against an owned vehicle. Visit their office near you or log into their website to learn more about this loan type.
  1. Equity bank logbook loan: They are a reliable and accessible bank for easy logbook loans. Equity bank is known for giving reliable asset financing to borrowers. You can get your logbook loans within a few hours of submitting all required documents.
  1. Ngao Logbook Credit: They give you up to 50% of the value of your car or up to KES 3 million in less than 24 hours to repay within a period of up to 15 – 20 months. Their requirements are easy to meet and they can be a good fit for solving emergencies by using your car as collateral.

Reasons Why These Logbook Loan Providers Are the Best

  1. Credibility and Reputation: These lenders have a good reputation and positive customer reviews. They are licensed by the relevant regulatory authorities in Kenya, such as the Central Bank of Kenya, to ensure they operate within the legal framework.
  1. Interest Rates and Fees: We compared the interest rates and fees among different lenders and we found out that the lenders listed above are the best. They all offer competitive rates and transparent fee structures. Also, they don’t charge excessive interest rates that could lead to financial strain.
  1. Loan Amount and Repayment Terms: Their maximum loan amount and the flexibility of repayment terms are great. Look for lenders that provide loans that meet your specific financial requirements and offer manageable repayment schedules.
  1. Customer Service: These lenders have a responsive customer service team that can address your inquiries and concerns promptly. Good customer service indicates a commitment to assisting borrowers throughout the loan process.
  1. Loan Approval and Disbursement Process: When you evaluate the efficiency and speed of their loan approval and disbursement process, you will choose them. They all have a streamlined application process and can disburse funds quickly once the loan is approved.

Requirements For Logbook Loans

It is essential to know the requirements for logbook loans and get them ready for the loan. We all know that different logbook loan lenders have unique requirements but we will be listing the general requirements we know of.

  1. Filled application form
  2. Bank statements for a period of 6 months
  3. Two copies of your passport photograph
  4. Original three-month payslips
  5. Copy of your national ID or passport
  6. Your  KRA PIN
  7. Proof of your place of residence 
  8. Copies of logbooks of your vehicle or for other motor vehicles (Used vehicles).
  9. The year of manufacturing of the vehicle should not be more than 10 to 12 years as a loan expiry

Some Other Lender’s Requirements Like Family Bank And Other Banks

  1. Pro-forma invoice from the dealer/ seller.
  2. Present the recent AA/regent automobile valuers and assessors valuation (for used vehicles).
  3. Proof of your source of income.
  4. Introduction/Confirmation/Appointment letter from your present employer
  5. Carefully signed authorization forms. 
  6. Present the car for evaluation and installation of the car tracker.

Pros and Cons of Taking Logbook Loans

Pros

  • The loan comes in handy during an emergency.
  • Logbook loans offer longer repayment periods between 12 – 36 months.
  • Logbook loan provides more time to get your finances in order.
  • Comes with a lower interest rate when compared to payday loan
  • People without a high credit score can secure the loan. Most lenders don’t look out for high credit scores but on the logbook documents. 
  • Once you meet the requirements, the process can be completed within 24 hours.

Cons

  • In all cases, one of the stringent requirements would be first to transfer the car ownership to the lender. 
  • If you do not keep up with repayments, most times, the car will belong to the lender, depending on the agreement. Or they will sell off your car to recoup the loan interest and the principal amount.
  • The amount you will get as the main credit will depend on the car’s age, the mileage on the vehicle, and the general condition of the car.
  • The loan comes with a high-interest rate when compared to mainstream finance.

Conclusion 

There are different best logbook loan lenders in Kenya and we have listed five of them in this article. If you have any reason why you won’t be using any of these lenders in this article, conduct proper research and compare lenders.

Remember, logbook loans come with risks, including high-interest rates and the potential loss of your vehicle if you default on the loan. It’s essential to carefully consider your financial situation and evaluate the terms and conditions before taking a logbook loan.

Tuk-tuk Loans in Kenya

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In Kenya, there are several financial institutions and lenders that provide Tuk-tuk loans to aspiring riders and business owners. 

A Tuk tuk

It is essential to research and compare the terms, requirements, interest rates, and repayment options offered by different lenders before deciding to go for Tuk-tuk loans. 

Additionally, consider factors such as customer reviews, reputation, and customer service when selecting a Tuk-tuk loan provider.

What are Tuk-tuk Loans? 

Tuk-tuk loans in Kenya allow individuals to own a Tuk-tuk (three-wheeled motorised vehicle) through a loan arrangement. 

The loan lenders give out the funds to purchase or lease Tuk-tuks, allowing people to enter or expand their operations in the transportation sector.

Majority of lenders request a deposit which averages ksh 50,000 to be provided by the borrower.

On the borrower paying the deposit to the lender, a rider will be given the Tuk tuk right away and then pay monthly installments as signed and agreed.

How Much Does a Tuk-tuk Cost?

Tuk-tuk loans in Kenya have no specific cost amount but depend on what each lender collects as an initial deposit price. Most lenders ask for a deposit of Ksh 50,000 or even more.

Some banks can finance up to 70% to 90% of the Tuk-tuk price. It depends on the policy of each financial institution in Kenya.

How to Get Tuk-tuk Loans in Kenya

To get a Tuk-tuk loan in Kenya, you need to follow the guidelines below:

  • First conduct background research on the lender.
  • Prepare your necessary and additional documents and compile other personal information.
  • Visit the lender’s closest branch and pick an application form
  • Fill out the form with honesty and don’t forget any information
  • Submit the form and other necessary documents.
  • Wait for the evaluation and Approval Process.
  • Once approved, you will be called to come pick up your Tuk-tuk. Or the bank will pay the agreed financing amount into your account.

Best Tuk tuk Loans in Kenya

There are a lot of Tuk-tuk loan providers but the best you can find in Kenya are: 

1. Mogo Tuk-tuk Loans 

Mogo Tuk-tuk loan is one of the best Tuk-tuk loans in Kenya as they specialize in that type of credit. To access this loan, you don’t need to stress, just visit the nearest Mogo outlet near you and apply.

A borrower with a good credit score can deposit ksh 50,000 and ride home with a brand new Tuk tuk of his choice, provided it’s in stock.

2. Watu Credit Tuk Tuk Loans 

Watu Africa which was formerly known as Watu Credit is also one of the popular Tuk-tuk Loans providers in Kenya.

To access the Watu Credit Tuk tuk loan, visit the nearest Watu Credit near you and apply.

Note that you will be asked to submit some documents and also pay a deposit before getting the Tuk-tuk.

3. Car and General Tuk Tuk Loan 

Car and General are also providers of Tuk tuk loans in Kenya. Visit the car and general office nearest to you in Kenya and apply for the loans.

Some of the other popular Tuk tuk loans in Kenya come from the following lenders; 

4. KCB Bank Tuk tuk Loans 

KCB Bank offers Tuk tuk loans as part of their “Get a Loan for a Small Business” program. With KCB Bank, you can get up to 70% financing of the purchase price, with a maximum of KES 5,000,000, plus insurance if needed. 

They also provide flexible repayment terms, allowing a repayment period of up to 24 months for Tuk tuks and 12 months for motorbikes. 

Their requirements are subject to change, ensure you visit their website or office for more inquiries.

5. JoyInc Tuk Tuk Loans 

JoyInc is a financing company that provides Tuk tuk loans in Kenya. To become a Tuk tuk owner with JoyInc, you can make a down payment of Kshs 50,000 and become a proud owner within 2 hours.

6. Equity Bank Tuk Tuk Loans 

Equity Bank, one of the largest banks in Kenya, offers Tuk tuk loans to both individuals and groups. They provide flexible loan terms and competitive interest rates to support your Tuk tuk ownership.

Other Tuk-tuk Loan Providers in Kenya

Some of the other Tuk tuk Loan providers in Kenya are:

Requirements for Tuk tuk Loans in Kenya

To be eligible for Tuk-tuk Loan, the lender needs potential borrowers to meet the following requirements:

  • Provide a 3-month active account statement with any financial or business institution.
  • Get a proforma invoice from Tuk Tuk dealers.
  • A valid driving license of the borrower/rider.
  • Show a document proving your ability to repay the loan.
  • Make an initial deposit of up to ksh 50,000 and above the lender. However, the banking system expects you to meet up to 30% of the Tuk-tuk cost and they will finance the 70%.
  • A guarantor who holds an account with the lender by the KCB account holder where a log book is a help on simple deposit.
  • A 6 months banking history with the lender or three months of group savings.

Note: we advise you to check for more requirements on the lender’s website before going for the loan. Optionally, you can contact their customer service or fill out the form online.

Conclusion

Some of the lenders you can consider while looking for a Tuk-tuk loan are:

  1. Mogo Tuk-tuk loan
  2. KCB Bank Tuk-tuk loan
  3. Watu Africa Tuk-tuk loan
  4. Equity Bank Tuk-tuk loan

Please note that the information provided is based on available sources, and it’s recommended to directly contact the lenders or visit their official websites for the most accurate and up-to-date information.

Cheapest Bank Loans in Kenya – All You Need To Know

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The Central Bank of Kenya’s (CBK) decision to raise its benchmark rate in March 2023 sent shockwaves through the Kenyan banking sector. As expected, most commercial banks followed suit, raising their lending rates. But amidst this rise, a different story emerged – one of smaller lenders defying the trend and offering borrowers a glimmer of hope with lower interest rates.

This blog post dives deep into the world of Kenyan bank loans, uncovering the cheapest options available and empowering you with the knowledge to make informed financial decisions.

We’ll reveal the banks extending a helping hand to borrowers with rates as low as 9%, while also exposing those charging a hefty 17.6%. So, buckle up and get ready to navigate the Kenyan loan market like a pro!

Cheapest Bank loans in Kenya

Based on our research, we came up with a list of banks that offer the cheapest loans in Kenya. Some of these banks are highlighted in the table below:

BankOverall rate
The Central Bank of Kenya9%
First Community9%
Ecobank10.7%
HFC11%
Access11.2%
Consolidated11.6%
Habib11.9%
DTB12.1%
Citibank12.2%
KCB15.6%

1. First Community Bank (FCB)

Standing out from the crowd, FCB boasts the current lowest average interest rate at an attractive 9%. This makes them a compelling option for borrowers seeking the most affordable loan. They offer various loan products, including personal and unsecured loans.

2. Ecobank Kenya

Following closely behind is Ecobank Kenya with a competitive average rate of 10.7%. This positions them as a solid choice for budget-conscious borrowers. They cater to a wide range of loan needs, making them a versatile option.

3. HF Bank

Offering a competitive rate of 11%, HF Bank provides a good balance between affordability and an established presence in the Kenyan banking sector. They specialize in mortgage and asset-backed loans, making them a good choice for those specific needs.

4. Access Bank Kenya

Rounding out the top contenders, Access Bank Kenya comes in at a slightly higher average rate of 11.2%.

Other Options to Consider

While not the absolute cheapest, these banks are still worth exploring depending on your specific needs and loan product:

  • Consolidated Bank
  • Habib Bank
  • DTB Bank

International Players:

  • Citibank: International banks like Citibank often cater to a different market segment and may have higher interest rates to reflect their operating model.

Traditional Powerhouses:

  • Kenya Commercial Bank (KCB): KCB loans often attract a 13% interest rate. They offer different categories of loans. Ranging from Masomo loans, personal unsecured check-offs, salary advances, etc. The only extra fee you pay is a negation fee of 2.5%. Interest rate comprises CBK rate at 9% and bank variable margin of 4%

Common Types of Cheap Loans Offered by Banks

  1. Secured loans
  2. Salary advance

Factors That Cause a Change in Interest Rate

The factors that cause changes in interest rates include:

  1. Monetary Policy: Central banks, such as the Federal Reserve in the United States, have the authority to set interest rates. By adjusting the benchmark interest rates, central banks can influence borrowing costs for businesses and consumers.
  2. Inflation: When inflation is high, central banks may raise interest rates to curb inflationary pressure and maintain price stability. Higher interest rates can reduce borrowing and spending, which can help slow down inflation.
  3. Demand and Supply of Credit: Interest rates are influenced by the demand for credit from borrowers and the supply of funds available from lenders. When demand for credit is high compared to the supply of funds, interest rates tend to rise. Conversely, when there is less demand for credit or an excess supply of funds, interest rates may decrease.
  4. Economic Growth and Financial Markets: Interest rates can also be influenced by the overall state of the economy and financial markets. During periods of economic expansion, interest rates may rise to control inflation and cool down the economy. Conversely, during economic downturns, central banks may lower interest rates to stimulate borrowing and spending to boost economic activity.

It’s important to note that interest rates are complex and can be influenced by multiple factors, and the interplay between these factors can vary depending on the specific economic conditions and policies in different countries.

How Commercial Banks Choose Their Interest Rates

Commercial banks determine interest rates using several factors such as:

  1. Market demand: The bank’s cost of obtaining funds is one of the most significant factors in determining the interest rate. The bank’s cost of borrowing affects its lending rate to customers, as the bank needs to earn enough interest to cover its cost of borrowing and also make a profit.
  2. Operational costs: Operational costs such as overhead, administrative and personnel expenses, and other costs of providing loans also contribute to the interest rate charged.
  3. Yield curves.
  4. Additionally, commercial banks assess potential borrowers’ credit scores, credit history, and assets to determine the risk of lending to them and the appropriate interest rate. 
  5. Finally, commercial banks also consider market conditions, for example, the prevailing interest rate trends, the demand for credit, as well as, the economy’s overall health and stability.

In conclusion, interest rates are influenced by various economic factors, including market demand and the bank’s operational costs. Banks aim to maximize profits while still remaining competitive by striking a balance between profitability and affordability to their customers.

Conclusion

Most borrowers fall prey to banks that offer expensive loans. The reason is that they patronize the ease of getting the loans rather than knowing the interest or other fees attached.

In urgent situations, borrowers may not notice some features. Some banks exploit Kenyans at this point of vulnerability. 

Note that it is better to conduct proper research for the cheapest loans before taking one. This would enable you to make your repayments easily.

M-Shwari loans – How to apply for a loan in Kenya

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Ever had that drowing feeling when you realize you’re short on cash? Maybe an unexpected bill hits, or you need quick funds for your side hustle.

In Kenya, the days of scrambling for loans or facing lengthy bank queues are fading fast. Thanks to M-Shwari, with a few taps on your phone you can have easy access to credit whenever you need it.

Intrigued? You should be!

This post will be your guide to getting that needed loan with M-Shwari. We’ll delve into eligibility, explore the loan application process (it’s shockingly simple!), and shed light on any fees involved.

But wait, there’s more! We’ll also explore some smart tips to ensure you get the most from M-Shwari loans; allowing you to increase your loan limit from zero up to 1 million Ksh. So, ditch the stress and keep reading. M-Shwari might just be the financial product you’ve been waiting for!

m-shwari-soft-loan

About M-Shwari loans

M-Shwari Loans is a service that offers fast and convenient access to interest-bearing savings accounts and mini loans for Kenyans seeking credit and financial services.

M-Shwari Loans is a financial game-changer in Kenya, offering a one-stop shop for both saving and borrowing on your mobile phone. Through M-Shwari, Kenyans can ditch the bank queues and access interest-bearing savings accounts to grow their money, while also having the option to apply for quick and convenient “mini loans” for unexpected expenses or small business ventures

Launched in 2012 through a collaboration between Safaricom, Vodafone, and the Commercial Bank of Africa (CBA), M-Shwari revolutionized the way Kenyans manage their money. Here’s a deeper dive into what makes M-Shwari loans so unique:

  • Easy Access: Everything, from applying for a loan to receiving the funds, happens directly through your phone. No filling out lengthy forms or visiting bank branches
  • Savings and Loans in One: M-Shwari isn’t just about borrowing. It’s a comprehensive financial product that also allows you to save. You can earn interest on your savings while also having access to quick and easy loans whenever you need them. It’s like having a mini-bank branch right on your phone!
  • Focus on Financial Inclusion: M-Shwari was designed specifically to address the gap in financial services for many Kenyans. Unlike traditional banks, M-Shwari uses your M-PESA activity and savings history to determine your loan eligibility. This opens doors for those who might not qualify for loans through conventional channels.
  • Rigorous Risk Assessment: Despite its accessibility, M-Shwari employs a strict assessment process to determine your loan limit. This ensures responsible borrowing and helps both you and CBA manage risk effectively. If you’ve ever wondered why your M-Shwari loan limit seems low, it likely reflects your past M-PESA usage and repayment history.

How to qualify for a M-Shwari lian

  1. Be 18 years and above
  2. Be an M-Pesa user for at least 6 months 
  3. Save on your M-Shwari account and actively use other Safaricom services 

How to apply for M-Shwari loans on the app

  1. You can access the loan through M-Pesa menu
  2. Select loans and savings
  3. Choose M-Shwari 
  4. Select loans
  5. Request for loans
  6. Input the amount 
  7. Enter your M-Pesa pin
  8. The loan amount will be sent to your M-Pesa account plus the facility fee.

Understanding M-Shwari Loan Limit

M-Shwari loans are all about convenience, but how much you can borrow depends on your financial responsibility. Here’s what goes into determining your M-Shwari loan limit:

Building Your M-Shwari “Trust Score”:

Unlike traditional banks with lengthy applications, M-Shwari uses a unique approach. They analyze your mobile financial behavior to create a kind of “trust score”, usually referred to as credit score. This score reflects how likely you are to repay a loan responsibly. Here’s how your financial habits contribute:

  • Consistent M-PESA Usage: Regular money transfers, bill payments, and airtime purchases through M-PESA demonstrate responsible financial management and active engagement with the platform. This positively impacts your M-Shwari loan eligibility.
  • Building Your Savings Habit: Remember, M-Shwari offers both loans and savings. The more you save in your M-Shwari account, the higher your loan limit could potentially be. This demonstrates financial discipline and responsible saving habits.
  • Timely Loan Repayments: A spotless loan repayment history is crucial. Settling previous M-Shwari loans promptly builds trust and demonstrates your commitment to financial responsibility. This can lead to higher loan limits and improved access to credit in the future.
  • Maintaining an Active Line: Ensure your M-PESA line remains active. An inactive line can negatively impact your loan eligibility. Regular use of M-PESA signals your active participation in the mobile financial ecosystem.

While M-Shwari loans range from Ksh 100 to Ksh 1 million, your individual limit will likely fall somewhere in between. By consistently practicing these positive financial habits, you can work towards increasing your loan limit and unlocking greater access to credit opportunities.

Building a strong M-Shwari financial profile is a two-way street. It benefits you by allowing for larger loans, but it also helps M-Shwari manage risk and ensure responsible lending practices. So, save consistently, repay on time, and keep your M-PESA line active. By doing so, you’ll unlock the full potential of M-Shwari loans and empower yourself to achieve your financial goal.

Interest rate

The interest rate for M-Shwari is 9%. This comprises of 7.5%. loan fees and 1.5% excise duty.

Loan repayment duration 

The loan repayment duration is 30 days or one month.

How to repay M-Shwari loans

You can repay the credit from your M-Pesa account or M-Shwari account. 

Here’s how to repay your M-Shwari loan through SMS:

  1. Open your M-Shwari menu on your phone.
  2. Look for the “LOAN” option and select it.
  3. Within the “LOAN” menu, choose “Pay Loan.”
  4. Enter the exact amount you want to repay towards your loan.
  5. Key in your M-Shwari PIN.
  6. Carefully review the confirmation message on your screen. This will typically show something like “Pay Loan Kshs 2,000” (replace 2,000 with your repayment amount).
  7. If the details are correct, confirm the payment by pressing “OK”.

Conclusion 

M-Shwari loan is for everyone who believes in banking made easy. No form to fill and no M-Shwari branch to visit. Just one simple process of downloading the app and signing up on your phone. The loan obtained from the platform can be for emergencies, or financing a project or enterprise.

Quick Online Loans in Kenya

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The financial service sector has seen the most technological evolution over the past years. Gradually steering towards completely abolishing the old ways of manually carrying out financial services, we are looking at a more modern surge.

One of the major service advances is the loan application process. We have now reduced the process of application to just visiting an online platform and following the steps that will be listed in this article. 

quick-online-loan

What are Online Loans?

Simply put, online is any money that is borrowed from a financial service provider who operates online. While the application process may vary depending on the lender, they are pretty similar when compared. Online loans let you complete the entire borrowing process, without ever setting foot inside a bank branch. Cool, right?

Online loans are one of the most convenient ways to borrow money. A great percentage of them offer lower rates or have less stringent requirements than you can find with traditional lenders.

Just like traditional lenders, each online lending company has its minimum eligibility and credit requirements.

Top 6 Online Loans With Instant Approval

When financial emergencies occur, online loans can be the most convenient option to get fast cash. But not all online lenders are reputable.

Currently in Kenya, most of the private lenders made their loans accessible through apps. But some banks made their loans available directly from their website. Current best bank online loans in Kenya are:

  1. KCB bank
  2. Missoni Microfinance bank
  3. NIC Bank
  4. Fin credit 
  5. Kenya Central bank
  6. NCBA bank Kenya

Note: These banks made their loans accessing directly from their website. You can apply directly online with the best interest rate and customer service support.

What are the Requirements for Getting Online Loans in Kenya?

The application process for an online loan might differ depending on the financial provider you eventually decide to go with. The following requirements are vital and apply to almost all financial service providers;

  1. Valid Kenya ID
  2. Proof of income
  3. Schedule of monthly household income and expenditure
  4. Proof of address (A bill in your name which quotes your address)
  5. Offer to purchase
  6. Bank statement

Sometimes, your credit score is considered while analysing your loan application.

How to Apply for a Loan in Any of the Best Online Loans in Kenya 

The application procedure for an online loan might differ, depending on the financial provider. Knowing this, the following procedures are obtainable with a great percentage of online loan providers:

  1. Visit the lender’s website online and fill out your official application 
  2. Send all necessary documents. Also, do your electronic signing if requested.
  3. Cross check all details
  4. Wait for your loan approval
  5. If successful, you get your fund within a short while.

It is important to adequately carry out a research or background check on the financial provider you will be considering. This is important, as it’ll help you get acquitted with the terms and conditions of loan before taking. 

Documents Needed to Apply for Loans in Any of the Best Online Loans

It is important to note that the document requirement for an online loan might depend on the financial provider in question. Still, the following documents are likely to be required when applying for an online loan;

  1. Security documents for logbook loans
  2. National ID card for some loan lenders
  3. Birth Certificate to prove your age. Some loan lenders request for this.

Ensuring all these documents are available during the application process puts you a step closer to getting your loan amount approved.

How Fast are Funds Released 

Once you have fallout your application form online, submitted all documents and re-sign, your fund will released within a short while

The only thing needed is for your loan to be approved. If approved, you will have our find within a short while.

Do’s and Don’ts of Getting Online Loans

Before taking a loan in either online or in any form, there are few keys to note. Keep these keys in mind and act by them and you’ll have a great loaning experience;

Do: Check Your Credit Report

For some credit providers, credit scores and credit limits are major determinants of your eligibility. Many credit facilities use credits as a barometer for risk. Any discrepancy can wreak havoc on your credit score or limit, so be sure to be careful. Discrepancies can come as a missed payment, credit card fraudulently attached to your name, etc. 

Do: Consider the Risks if you Have Bad Credit

With a bad credit, you may find it harder to get a decent interest rate on a personal loan. People who find themselves in this boat may need to consider a cosigner to improve their odds of getting approved.

Do: Read the Fine Print

Take a fine-toothed comb through the terms and conditions of your loan offer before accepting. It is of great importance you understand everything in the contract, otherwise, you may have to be forced to pay surprise fees in the future.

Don’ts

Don’t: Accept the First Loan Offered to You

Take your time to check out other options and compare their terms and conditions. In the end, choose the one that best fits your current state.

Don’t: Take out the Maximum Loan Possible

Come on, where is the wisdom in taking out the biggest loan amount just because you can afford it. Over-borrowing can be just as dangerous as paying for something outright that you can’t afford.

Don’t: Skimp on Payments

Scheduling automatic withdrawal or monthly reminders to pay your personal loan is a wise choice. Prompt payments not only improve your chances of getting a better rate, it also improves your credit score.

Conclusion 

It is called financial emergencies because of how urgently they need to be attended to right. So when they occur, the last thing you need a process that might waste your time.

Online loans have long been the number option for both businesses and individuals who immediately need finance. Big ups to technological advancement for making it possible to access these loans from anywhere and have them in no time.

Commercial Banks in Kenya that give loans without collateral

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Proper execution of economic activities in Kenya is a major role financial institutions have played through loan provision. However, the deep concern of banks while advancing loans is how to get their cash back. Noting that the transaction between the bank and the borrower is an enormous risk. There are still banks that advance loans without collateral.

Notwithstanding the risks involved, some banks give loans to their customers without collateral. They look at your excellent credit history, strong income proof, and long relationship with them.

Let us explore some banks in Kenya that give loans without collateral.

banks-in-kenya-that-gives-loans-without-collateral

Bank loans without collateral are loans you can access without having to present an asset for loan commitment. Banks look at your income, cash flows, and credit history first before consideration. Moreso, for business loans, they look at the strength and stability of your business. Some banks also put into consideration your long relationship with them.

Having to look at these criteria, they approve your loan. When you cannot repay, they have agents that work for them. These agents will send you a notice upon term expiration. 

Banks in Kenya that give loans without collateral 

Some banks in Kenya give loans without collateral and they include:

  1. Commercial Bank of Africa: they offer SME loans without collateral to young entrepreneurs and other businesses. With flexible repayment terms and less interest rate.
  2. KCB bank Kenya: KCB bank Kenya offers personal and SME loans to businesses. A repayment period of 12months with 9% interest rate 
  3. Diamond Trust bank: you can access personal, business and salary advance of up to Ksh. 30,000 to Ksh. 250,000.
  4. Cooperative Bank of Kenya: They give loans for personal use without presenting any commitments. All you need is a good credit history amidst other requirements.
  5. NIC Bank: they render quick loans to customers daily. Open an account with them and have a strong means of repayment.
  6. National Bank of Kenya
  7. Standard Chartered Kenya

How to apply for bank loans without collateral. 

  1. Visit the bank’s website or office and fill the application form
  2. Apply for the loan and supply all personal details 
  3. Submit all necessary documents 
  4. Wait for loan approval and if approved, have your loan within 24hrs 

What determines your eligibility for bank loans without collateral 

Your eligibility for bank loans without collateral are:

  1. Be 18years and above with proof of strong income, cash flow and business record.
  2. Posses a national ID 
  3. Have a valid phone number
  4.  Strong credit history 
  5. Some banks also determine your eligibility by your long-standing relationship with them. And also by having an account with them for a certain period.

Requirements for banks’ loans without collateral 

Below are the requirements needed. There are lists of requirements for banks who offer loans without collateral. They are:

  1. National ID card
  2. 6 month’s statement of account 
  3. Payslip
  4. Business record, licence and certificates for business loans
  5. Passport photograph
  6. KRA pin certificate 

Types of loans you can get from a bank without collateral 

The type of loans you can get from a bank without collateral are:

  1. Personal loans 
  2. Unsecured loans 

Other loans you can get from the bank without collateral 

  1. Business loans 
  2. SME loans
  3. Salary advance

Conclusion 

With the current pandemic and poverty in the economy, you can cling to banks for loans without collateral. It is important to note all the requirements for you to have a good chance. We conclude with the facts that accessing credit without collateral does not have to be an avenue to abuse the privilege. Make repayment so you won’t have to worry when next you need a loan.

How To Apply For Quick Loans in Cooperative Bank Kenya

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Let us learn how to apply for quick loans in co-operative bank Kenya. Many people in Kenya, both salaried and non-salaried, have different needs in life. Some of these needs tend to be urgent and require swift action, while others seem to need slow action.

Kenyans seek money in different places. Individuals with bank accounts take salary advances and loans from banks and pay back after they get paid.

This is therefore why Co-operative Bank of Kenya understands this and has therefore made provision for loans for various needs of Kenyans. 

About Co-operative bank loan

The Co-operative Bank of Kenya is a publicly listed bank, aiming to be Kenya’s foremost bank with a strong national presence. Incorporated under the Company Act in 1965 and also licensed to carry out banking business under the Banking Act in Kenya.

Subsequently, companies of Co-operative bank Kenya runs three subsidiary companies, namely:

  1. kingdom securities limited: a stockbroker with a 60% controlling stake in the bank.
  2. The bank owns the fund management subsidiary Co-opTrust Investment Services Limited.
  3. Co-op Consultancy & Insurance Agency Limited (CCIA): A subsidiary wholly owned by the bank that specializes in corporate finance, financial advisory, and capacity building.

How do I qualify for a co-operative bank loan Kenya?

  1. 18years and above
  2. Original National Identity Card
  3. Original KRA PIN Certificate
  4. Salary pay slips for the last 3 months.
  5. Filled loan application form.

How to apply for co-operative bank Kenya loan 

To apply for co-operative bank loan, check round their website and download the form. You can also visit their physical branch and have then guide you on loan application 

Loans offered by the Cooperative Bank of Kenya

Loans offered by co-operative bank of Kenya are:

  1. Personal loans 
  2. Bizwise SME loans
  3. Co-op bank Flexi loan (salary Advance)
  4. Insurance finance loans

Personal loans

Personal loans offered by Co-operatives have been designed with features that facilitate the purchase of specific goods and services. In this regard, customers can get a Co-operative Personal Loan to buy shares on the NSE, to Top-up their loan balance to the original amount. To also finance the expansion of dairy production for dairy farmers or even for Sacco to on-lend to members.

Enhanced Benefits:

  1. The Maximum borrowing limit for unsecured loan raised to Ksh. 3 million.
  2. Maximum repayment period extended from 36 months to 60 months for loan amounts above Ksh. 100,000

Features:

  1. Minimum loan amount of Ksh 50,000
  2. Maximum loan amount of Ksh 4,000,000
  3. Maximum term of 72 months
  4. The purpose of the insurance policy includes education, medical, furniture, consumer durables, motor vehicles, plot purchase, holidays and shares.
  5. Credit scoring serving as a determinant for the appraised value of applications.
  6. Applications approved within 48hours.

Business/Bizwise SME loan

They provide small and new businesses the funding they need to grow. Small business owners can apply for the loan and the rates are affordable.

Their business expansion loan enables you to open new branches and launch new products. You can also finance the purchase of equipment, and purchase assets like land, buildings, and motor vehicles. The Bizwise SME loan can be up to 50 million.

Requirements:

  1. Need the applicant to have operated a business current account in Co-op bank for at least 6 months.
  2. Provide the bank with bank statements 
  3. Business Registration documents such as a Certificate of incorporation, Memorandum e.t.c.

Co-op Bank Flexi Loan (Salary Advance)

Don’t worry about surviving a tough month with Co-op Bank. Co-op Flexi Cash lets you borrow between Kshs 3000 and 100,000 for emergencies or short-term expenses.

This product has an interest rate of 1.16% and is repayable for not more than three months. The Co-op Flexi Cash has no additional security requirements. And, if you apply through MCo-op Cash, you will not incur any facilitation fees. You must have an active salary account with the bank for at least six months to qualify for Flexi Cash.

Insurance Finance Loan

This loan is given to people with insurance policies who need to pay their monthly premiums. Essentially, a lump-sum premium payment is made to the insurer on your behalf by the bank leaving you to pay the loan back in simple monthly installments at very competitive interest rates. The bank also offers flexible repayment options between 4 months and 10 months.

Benefits:

  1. The benefit of the loan is that it was tailored to fit the individual cash flow needs.
  2. Funds are freed up, giving you the liquidity you desire.
  3. Quick approval and simple application process, and no security required. 
  4. The minimum amount to be financed is Ksh 15,000 and there is no maximum. 
  5. Anyone can apply, and almost any insurance finance policy is covered. 

How to apply for Co-operative insurance Finance loan

You can apply at any Co-op bank branch countrywide or through your insurance broker.

The Co-op mobile banking App

Co-operative is banking on the mobile service to grow earnings from transaction charges. M-Co-op Cash charges a one-off seven per cent fee for secured personal loans between Sh100,000 and Sh200,000 repayable within 30 days.

Features of the app

  1. Apply for a loan
  2. Send money to other mobile money services, for example, M-PESA.
  3. More than 100k downloads 

Co-operative bank loan Calculator 

The Cooperative Bank of Kenya loan calculator is available online to customers, and helps them calculate the total cost of the loan, the start and completion dates as well as the monthly installments. With a customized calculator, you can choose your repayment period and monthly installment for each loan type.

How to repay your co-operative bank loan

You can repay by funding your account and having the money automatically deducted 

Or

By visiting the bank and asking for a different option. 

How long does it take to process a loan in a co-operative bank?

The duration of the Co-operative bank loan usually depends on the type of loan one wishes, such as personal loans, business loans, SME loans, and others. Most loans are approved within 24 business hours. 

Conclusion

In Kenya, Co-operative banks are offering guaranteed loan approval all over the county. They are very different from the banks or those finance agencies where the loan applicants have to struggle a lot to borrow money.

Their application procedure is so simple and straightforward. Borrowers are free from documentation hassle. 

Co-operative bank has a team of loan experts and insurance finance brokers who have immense experiences in helping people out from their financial emergency.

Bank of Africa Kenya loans- all you need to know

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Banks are organized financial institutions that save us in times of difficulties. They provide credit facilities to solve different needs. Bank of Africa Kenya loans are not left off the list. They are a structured lending platform that provides different loans to individuals in Kenya.

Let us discuss their categories of loans, the account needed for each loan and how to contact them.

bank-of-africa-loans

About Bank of Africa Kenya 

Bank of Africa Kenya limited (BOA-Kenya) is a commercial bank providing banking services to corporate and individuals. Small and medium enterprises are left behind. They also cater for retail clientele. The bank began activities officially in Kenya in July 2004 and currently has recorded so many achievements. 

They acquired Kenyan branch of Credit Agricole Indosuez, a large international French bank. The French bank has operated in the country for over 20 years. The bank has a wide network of 27 branches country wide and a business center in Nairobi, Kenya.

What you need to know about Bank of Africa Kenya loans 

Basically Bank of Africa Kenya limited offers personal and business loans. Their branch in Kenya offers full services to SMEs and operates in real time. The loans gotten helps their customers to seamlessly and expediently transact business.

Bank of Africa Kenya loans

The different categories of loans offered by Bank of Africa Kenya limited are:

  1. Personal loans (which includes Salary advance)
  2. Asset finance 
  3. Mortgage products 

Personal loans

Their personal loans amount is Ksh 50,000 to Ksh 2,000,000 extended to salaried individuals with minimum net salary of Ksh 25,000.

Eligibility:

  1. Be in a continuous employment for over 6 months
  2. Have a minimum net salary of Ksh 25,000
  3. Qualifying age limit is 55 years
  4. Be ready to pay a processing fee of 3%
  5. Provide a good Credit Reference Bureau report

Benefits:

  1. Comes with a competitive interest rates
  2. Flexible interest installment plan
  3. Can apply for a maximum loan amount Ksh 2,000,000
  4. Receive a minimum loan amount of Ksh 50,000
  5. Fast to processing & disbursement to your personal account or salary account within 1 week

Features:

  1. Enjoy a loan duration of a minimum of 12 months to a maximum of 48 months
  2. Enjoy a response time of 48 hours
  3. Get amount ranging from Ksh 2,000,000 to Ksh 50,000

Requirements:

  1. Submit a completed Bank of Africa Personal Loan application form
  2. Letter of undertaking from employer confirming further payment 
  3. Copy of a valid ID
  4. A PIN certificate
  5. Printed original copies of the preceding 3 months’ payslips
  6. For non-BOA customers, copies of bank statements for 6 months

Asset finance 

Bank of Africa Kenya limited, designed asset finance to enable individuals and businesses acquire durable assets. The asset to be financed will be used to grow the capacity of the business. It would be also used to improve the level of service delivery of an existing enterprise.

Target Audience:

  1. Individuals
  2. Entrepreneurs
  3. Limited companies
  4. Law agencies
  5. Non–profit organizations

Mortgage finance 

Bank of Africa Kenya Limited provides a comprehensive mortgage finance solution. This focuses on providing personal and unique services. They achieve this by enabling their customers to buy, build or improve their own properties or homes.

Mortgage Products Offered:

  1. Home improvement
  2. Property acquisition 
  3. Equity release 
  4. Construction

Requirements:

  1. A properly completed and signed application form.
  2. Provide a sale agreement/offer letter.
  3. Identification card
  4. Passport 
  5. Registration documents for a business.
  6. Copies of payslips.
  7. Print bank statements for the last six months.
  8. Copy of the title of the asset that is serving as a collateral.
  9. A valuation report 
  10. A well-drafted letter of introduction and undertaking from an employer for employed persons.
  11. Open a Bank of Africa Kenya limited Current account.

Benefits:

  1. Own occupation
  2. Gain tax benefit through mortgage relief.
  3. Free financial advice on mortgage products.
  4. Personalized customer service.
  5. Flexible terms of repayment
  6. Begins to save on rent
  7. Receive capital gains from property appreciation.

Different accounts operated by Bank of Africa Kenya for loan disbursement 

  1. Personal account
  2. Current account 
  3. Deposit account
  4. Salary account 
  5. Savings account 

How to contact Bank of Africa Kenya loans

Visit BOA House, Karuna Close, Off Waiyaki Way, Westlands, Nairobi.

You can call them via call at: 0703058000/ 0203275000. If you choose to email them, their email address is yoursay@boakenya.com 

Conclusion 

Bank of Africa Kenya limited has the vision to be the preferred bank to the chosen market. They offer personal, salary advance, mortgages and asset finance to their customers. 

Furthermore, their mission is also to serve their customers with efficiency and courtesy. To contribute to the development of all their stakeholders and lots more. Try Bank of Africa Kenya loans today and enjoy their great features. 

Government Programmes For Agricultural Loans in Kenya

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The increase in the country’s population and the call for higher-value agricultural production gave the need to invest in agriculture. Also, the constant demand for food and change in dietary preferences of citizens turned the agricultural market as the most sorted for.

There are several ways you can apply for a loan in Kenya, but in this article, we will explore some of this government agricultural loan programmes in Kenya. However, before we go into that, let’s take a quick look at what agricultural loans are..

agric-loans-in-kenya

What are Agricultural Loans?

Agricultural loans are a type of loans designed or mapped out for farmers and Agribusinesses. The loans are used by farmers and Agribusinesses in ways like farming, farm implement purchases, crops for cultivation, and other agriculture-associated activities.

What are Government Programmes for Agricultural Loans 

Government programmes for agricultural loans are a set of related measures or activities or schemes with a peculiar long-term aim of giving loans to farmers. The program is set up by the government intending to support farmers and Agribusinesses in food production.

The programme caters for all Agro-entrepreneur who are ready to work and boost the economy through mechanized agriculture. 

List of Government Programmes for Agricultural Loans in Kenya 

 1. Agricultural Finance Corporation: Agribusiness Loan

They set this programme up to support and encourage beginners in the agricultural sector. They design it to provide capitals for Agribusiness traders and start-ups. 

2. Youth Enterprise Development Fund

The Youth Enterprise Development Fund helps in the provision of mechanized tools to farmers. They have partnered with agencies like smart solutions in Africa (SSA) to support young farmers and beginners in accessing greenhouses and mechanized implements.

Their aim is to provide a shift from traditional farming methods to the modernized methods.

3. Uwezo Fund    

They established it in 2013 geared towards mentoring entrepreneurs which young farmers are inclusive towards eradicating poverty. They off loans between the range of sh. 50,000 and a maximum of sh. 500,000.

It is mainly for youths, women, and people with disabilities. They are also known as Mirroring the youth fund. They also help in achieving gender equality and self-independent.

Contacts: info@uwezo.go.ke/programmes@uwezo.go.ke

 4. Women’s Enterprise Fund

Women’s enterprise fund is an initiative tied to offering women entrepreneurs loans to start up something and be self independent.

They also help in marketing goods and services produced by these women entrepreneurs. It is a social motivation fund by the government to women entrepreneurs. 

contacts: +254 0714606845-6

 5. ICDC

The Industrial and Commercial Development Corporation is a 64-year-old initiative. Moreso, ICDC offers capital, joint-ventures, commercial loans and asset financing to entrepreneurs.

The aim of ICDC is to boost agriculture and industrial development in Kenya. They also offer medium and long-term loans.

Email: info@icdc.co.ke, customerservice@icdc.co.ke

6. Kenya Industrial Estate.

They joined Kenya Industrial Estate to the Ministry of Industrialization to boost the economy. Boosting all aspects of industry, both Agriculture is the key to reaching developed status.

Hence, Kenya industrial Estate is driven to indigenize all sectors of industry in Kenya. They provide subsidized loans and improved entrepreneurial skills to the citizens. They also offer loans of up to 14 million shillings.

   Email: admin@kie.co.ke Contacts: +254 0722 297 636/+254 0733 279 861

 7. Industrial Development Bank   

First Industrial development banks help to establish or expand the business and younger farmers. Their loans come in different forms ranging from projects, assets to tools financing and hire purchase.

They established it in 1973 and disburses secured loans to large industrial enterprises like Agribusinesses. They are capital heavy venture initiatives. 

Email: bizcare@idbkenya.com Mobile: +254 0733 221 111; 0728 970 750

Pros and cons to government programmes for agricultural loans in Kenya 

Pros:

  1. Low interest rates
  2. Opportunity to attend seminars and lectures by the organizing officers of the programme 
  3. Enough fund to achieve your aim
  4. Longer repayment duration
  5. Constant advice and briefing on the current situation in agricultural sector

Cons:

  1. Lack of access to modern instruments of risk management like insurance 
  2. When farmers don’t meet with demand, nobody cares. You must fulfill the contract agreement
  3. Might not see a guarantor to stand for you.

How to apply on each of these government programmes agricultural loan

The steps in applying for any of these programmes are:

  1. Visit their website online and or their physical location 
  2. Fill the application forms online or download the form and fill it. 
  3. Take the filled form to their office
  4. Submit all necessary documents and details
  5. E-Sign if it is available online or meet the loan officer to share necessary information on how to start your loan process.
  6. Click enter if it is online. When it is offline, submit all necessary documents and wait for approval and disbursement. 

Who is eligible for Government programmes for agricultural loans in Kenya 

The programme is for all kinds of farmers such as small and marginal farmers, tenant farmers and entrepreneurs in agricultural sectors or business. Concisely they include:

  1. Farmers who are more than 18years and above and possess a national ID and active phone number 
  2. Agribusinesses 
  3. Entrepreneurs in the agricultural sector.

General required documents for government programmes for agricultural loans 

The general documents required include:

  1. National ID 
  2. Proposed business plan 
  3. Bank account statement 

Note: Each programme has peculiar additional documents they require. 

How to be part of the government programmes for agricultural loans in Kenya

To be part of these programmes and also benefit from it, you need to be:

  1. Be a farmer or a young entrepreneur in the agricultural sector. 
  2. Start a Horticultural projects
  3. Establishment of dairy units and be ready to feed the country.
  4. Establishment of small poultry units and need a working capital for expansion.

Note: There are other criteria included. Contact the program organizers or visit their head office to get more clarifications.

Importance of government programmes for agricultural loans in Kenya

The importance of these programmes are:

  1. The programme plays  a key catalytic role in strengthening the farm business 
  2. It helps in augmenting the productivity of scarce resources.
  3. Bridges the gap between macro and micro agricultural systems. 

Conclusion 

Having food reach every nook and crannies of Kenta is the concern of government and agriculturists. Also, the government being aware of the need of agriculture amongst other sectors of the economy,  they consented to improve agriculture by venturing into government programmes.  These programmes give loans to both farmers and Agribusinesses.