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How to be Certain About Getting a Loan During an Emergency

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How to be Certain About Getting a Loan During an Emergency? By identifying the easiest loan, legit lender, qualifying for the loans, and getting your documents ready.

Loans can feel like a last resort in an emergency. There are, however, many ways to make sure you are getting what you need to feel secure and keep your household afloat during hard times.

How to be Certain About Getting a Loan During an Emergency

What is an emergency loan?

An emergency loan is a short-term cash loan you can get quickly, usually 24 to 72 hours after you apply, in times of financial hardship. In emergencies, we all need money fast, and depending on your financial situation, an emergency loan may be a good fit.

About how to be Certain About Getting a Loan During an Emergency

If you are planning to apply for a loan during an emergency, then there are things ‌you will need to prepare. These can include your financial records, bank statements, information about your property, and any other valuable assets that you have. Besides these, you will also have to consider having some collateral for the loan should you cannot pay it back on time. If you have nothing of value at hand that is of use to a bank, then you can always consider getting your hands on some valuable items such as precious metals like gold or silver coin that can be converted into cash upon the need to pay off the loan.

What you need to know about being certain about getting a loan during Emergency

The worst time for an emergency is after you have used your emergency fund. A car accident or major home repair can wipe out crucial savings. 

How do you ensure that when you need money, even during times of emergency, you can get it? There are plenty of options to consider when it comes to loans in Kenya, but what you will want to find is the best one among the lot.

  1. Consider a short-term loan program
  2. Check out for Cash advance
  3. Loans from payday lenders e.t.c

How to be Certain About Getting a Loan During an Emergency?

If your credit score is suffering, it’s difficult to get a loan but the right lender can make all the difference. Here is what you need to know about the easiest loan to qualify for, securing a loan, managing a payment schedule, and ensuring timely payments.

When borrowing is chosen as the way forward, there are several options to note to be sure you will get a loan:

  1. Identification of a reliable direct lender
  2. Going for Payday Loans
  3. Requesting short-term loans from lenders
  4. Applying for a credit card loan
  5. Building your credit and applying for loans from the bank
  6. Loans from reliable family and friends

Apply for a short term Loan offering a Guaranteed Approval

Some loan lenders in Kenya provide guaranteed short-term or payday loan approvals for borrowers who qualify or who meet their basic eligibility criteria:

  1. Proof of income
  2. Be 18 years and above
  3. Proof of age
  4. Active bank account or M-Pesa account
  5. Valid phone number
  6. Residence address and utility bill
  7. National ID
  8. Passport photograph
  9. Some lenders would request your Facebook account

How Identification of a Reliable Direct Lender

During a time of emergency, watch not to apply for a loan with a dubious lender. Do thorough research even though you need the money urgently or you can read reviews online or ask your friends.

Determining the reliability of a lender is an important part of choosing a loan on its own. This is a quick and easy way to know that a lender is legit:

  1. Verify the online presence of the lender’s services on the web or via the app
  2. Then ‌read reviews about the lender online
  3. Try to avoid emergency loan brokers with the sweet mouth, as they can cause delays and issues
  4. Check out for other reviews and real feedback on the online lender’s services
  5. Look out for accreditations on the lender and their website security certificates
  6. Search for a contact number, address, and email ID of the lender that are present on the website and are valid enough
  7. Run from a lender that offers suspicious and constant bonanza and offers such as a “free one-month fee”, “50% off fees”, etc.

5 types of emergency loans

The type of emergency loans we go for should reflect our immediate needs. They are:

  1. Personal loans
  2. Cash advance
  3. Payday Loans
  4. Loans sharks or pawn shops’ loans
  5. Car title loans
  6. Payday alternative loans like short-term loans

What makes a loan ideal for emergencies?

There are many things you need to know that make a direct lender of a short-term loan or payday loan ideal for emergencies. They are:

  1. Some of these lenders guarantee approvals subject to loan eligibility and meeting requirements
  2. Lenders that can easily approve your loan and credit it quickly are ideal for emergencies
  3. A person with a very strong online presence because people prefer online loans as it is easy and quick
  4. A loan without more checks and delays can serve more people and save time, making emergency loans more workable
  5. Lan options with great flexible repayment options are more ideal than rigid ones.

Other searches- When is it Okay to take Small Personal Loans for Business

Conclusion

One way to ensure that you get a loan during an ‌emergency is to know your options. Asking from the government, friends, and from relatives are the best options, but if you want to apply through a lender, then research different lenders so you can get the best offer.

6 Online Emergency loans in Kenya – (2022)

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The 6 online emergency loans in Kenya mentioned in this article is a smarter means to borrow and solve pressing needs. After all, unplanned and completely unpredictable events must always occur. We will be exploring some of the online emergency loans in Kenya.

How does online emergency loan work

An online emergency loan is an online unsecured personal loan that allows you to get a loan online and pay for unexpected expenses. You need a smartphone to apply for an online emergency loan in Kenya. If they approve your loan, it gives you the power to own a fund and solve your immediate problem and pay back soon enough.

6 Different Online emergency loans in Kenya 2022

Currently in Kenya, online emergency loans are made accessible through apps. Current best online emergency loans in Kenya are:

  1. KCB M-Pesa loans 
  2. M-Shwari online loans
  3. Utunzi online loan
  4. Tala loans
  5. Branch loans 
  6. Timiza loans

How to apply for an online emergency loans in Kenya 2022

To apply for an online emergency loan, follow the procedure:

  1. Download the app from Google Play store 
  2. Install and register your details on the ap
  3. Submit all necessary documents. Also, do your electronic signing if requested.
  4. Update all personal information and add your bank account details and phone number 
  5. Apply for the loan 
  6. Wait for your loan approval
  7. If successful, you get your fund within a short while.

Eligibility for the best online emergency loan in Kenya 2022

To be eligible to apply for an online emergency loan, you need to:

  1. Be 18years and above
  2. Possess a national identity to prove your identity 
  3. Own a digital gadget that can connect to the internet.  Be it mobile phone or tablet or personal computer. 
  4. Have a valid phone number 
  5. Operate a workable email address 
  6. Have a bank account or M-Pesa account 

How to repay an online emergency loan in Kenya 2022

To repay an online emergency loan, follow the procedure:

  1. Login into the online app
  2. Click on “repay loans”
  3. Input the loan amount
  4. Select the option for repayments 
  5. Tap the repayment and have your loan repaid
  6. Wait for a successful repayment message 

Conclusion 

Online emergency loans are loans you receive to solve little unexpected issues. We have various online emergency loans discussed in this article. Go through it and select the one you need. 

Also, note that it is an alternative to take when commercial loans fail you. Be smart enough to penetrate the financial market quickly and smoothly to meet up and solve your pressing needs. 

Emergency loans in Kenya – Everything you should know

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With the current global pandemic and other economic issues in Kenya, living has not been easy. No matter how much you work, toil and expect the unexpected, there is simply no way to know what lies ahead. Escaping from emergencies in a smarter and effective way is through an emergency loan. After all, unplanned and completely unpredictable events must always occur.

An emergency loan in Kenya gives you peace of mind when daily troubles and lack of funds leaves you stressed out. So know this, it is difficult to come up with a fund right away when you need it. Are you still willing to go along with me? If yes, let us explore emergency loans in Kenya and all you need to know.

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What you need to know about Emergency loans

Emergency loans often come as unsecured personal loans, salary advances, payday loans, and credit card cash advances. These forms of loans are gotten quick to solve the said emergencies. It is sent directly to your bank account or your M-Pesa account. Often within a business day or few hours. The fast processing of the loan depends on the lender and the details of the loan application.

To fully understand the lender’s requirements and your options, conduct a quick research. Also read everything throughout the process.

What are Emergency loans?

Emergency loans are loans that cover sudden expenditures. They are unsecured personal loans that you can borrow to solve pressing and unexpected expenses. Relatively they are expenses like unexpected car repairs, home roof repairs, personal needs, etc.

Because emergency loans are unsecured, they require no collateral. However, some lenders offer emergency loans where the borrower has to put up an asset.

Personal emergency loans steps and procedures vary by lender, so all you need to do is to evaluate each of your options. Consider how much you can borrow, the fees, minimum amount, your income and the requirements

How does emergency loan work

An emergency loan is an unsecured personal loan that allows you to get a loan and pay for unexpected expenses immediately. If they approve your loan, it gives you the power to own a fund and solve your immediate problem and pay back the next day or soon enough.

Then instead of submitting a collateral and going through the long process of collecting a loan, you take the quick step. You make simple fixed- rate repayments within a month or more based on your terms.

Personal emergency loans come with low credit interest rates than credit card cash advances.in paying back the fund you collected, do it in a smarter, affordable and better way.

What can you use Emergency loan for

Emergency loans as a type of unsecured personal loans can be used for almost everything. It is pertinent you review the terms of each lender before proceeding to apply. Therefore, emergency loans are used to pay Bill’s ranging from:

  1. Car repairs: while going through your daily activities, your automobile might need an immediate repair. The tendency being to use it at the most effective time often regarding going to work.
  2. Unexpected circumstances to see the medics: often the body system changes without permission. The need to see the doctor may arise unexpectedly and if you don’t have cash, an emergency loan is the best option. You can also use the fund collected to pay off accumulated hospital bills or purchase drugs. 
  3. Natural disaster occurrence: natural disasters like flood and wind blowing off home roofs might need an emergency fund to repair it. You can collect the money and sort out disaster occurrences and pay in due time.
  4. Utility bills: unexpected bills and utility bills can make you go for emergency loans when you don’t have the fun. It can be used to set off immediate bills to avoid embarrassment and issues.
  5. Machine replacement and food stuffs: replacing a machine for creating more output is important and might require an emergency loan to tidy that up. Also, hunger can not be endured till the end of the month when you receive a salary. It is better if you take up an emergency loan and buy foodstuffs and payoff at the end of the month.
  6. Rent payment: if your rent is due and you run short of cash, an emergency loan can sort that. To avoid being thrown out of the house, it is better you sort for a better option and better later with an interest.
  7. Funeral expenses: death does not knock on the door before it comes in. When a loved one passes away without leaving a funeral cost, you may take up the responsibility and go for an emergency loan.

Types of emergency loans

When you need a loan in time of emergency, there are several options out there that you can pick from. The type of loan you go for depends on your credit history.  They may also consider your capacity in repaying the loan. The types of emergency loans we have are:

  1. Personal loans
  2. Payday loans
  3. Credit card cash advance 
  4. Title loans and Shylocks loans

Personal loans

Unsecured personal loans is a type of an emergency loan that is rampant in Kenya. Your eligibility and amount are determined using your credit history. Some personal loans also are collected by presenting a collateral like logbook car loans.

Learn more on how to apply for personal loans in Kenya

Payday loans

This is also a form of an emergency loan that has a high interest rate and flow amount. You make repayment on your next payday and require no credit check. Unsecured personal loans are better when compared with payday loans.

Credit card cash advance

This involves borrowing funds through your current credit balance when you have a credit card. The interest rate for this type of emergency loan is also high. Transactions and processing are associated with this type of loan.

Title loan and Shylock loan

Here you need to provide your car or a tangible item, as requested by the lender for funds. When you cannot pay back the loan, the lender keeps the car or sells it off to recover the loan amount.

Check out other types of Loans in Kenya

Where to get an emergency loan

When there are options like credit card cash advance, payday loan and others, there are other options. You can also collect emergency loans from:

  1. Bank
  2. Online lenders
  3. Credit union

Banks

You can get an emergency loan in the bank and have it transferred to your bank account. If you check and find out that you qualify and the process isn’t too long, you can go with the bank. 

Online lenders

Different online lenders in Kenya offer emergency loans quick and easy using a loan app. Some show you the pre-qualification on the app to check if you qualify. This option is also better once you are sure they are reputable lenders, have a secure site and legitimate as well.

Credit unions

A credit union can provide emergency loans. They transfer the money to your credit union account. It is a community or women or region based union. Their loan amounts vary, and they are fair to credit scores. Just meet the requirements and find out If they give to their members only or individuals that have covered their probation. 

How to choose an emergency loan

When doing your quick research and comparison both online and offline, know what you want. Avoid choosing the first person, each for the best lender by considering:

  1. Fund arrival time and how soon to get the cash
  2. The interest rate associated with the loan amount.
  3. The repayment duration. Know that the emergency loan duration varies with lenders. It is important you go for a longer repayment duration to give you time to gather enough funds.
  4. Check all other associated fees. Watch out for what lenders charge, especially the transaction fee and late payment penalties. 
  5. Identify the credit score to meet. Your credit history affects your interest rates and the loan amount.

Emergency loan alternatives and alternatives when you have a bad credit

When you have weighed all options and there are many shortcomings. Seek for other alternatives. Often bad credit could be the cause. Look out for other escape route to this. Other options include:

  1. Seek an advance cash offer from your employer 
  2. Checkout charitable financial organisations 
  3. Talk to a friend, family or neighbors.

Conclusion 

You can conquer any situation you find yourself in life that may require funds. Life issues knock on everyone’s door; the financial market has mapped out daily and several options to sort it out. Emergency loans are loans you receive to cover unexpected life issues. We have various types of emergency loan discussed in this article. Know them and select the one you need to go for. 

Also, note strategies or alternatives to take when commercial loans fail you. Be smart enough to penetrate the financial market quickly and smoothly to meet up and solve the emergency. 

Quick Online M-Pesa loans – Everything you should know

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M-Pesa is Kenya’s largest Fintech platform with outstanding mobile money services. It is the most preferred platform for making quick online M-Pesa loan payment in Kenya. Kenyans without a bank account or limited access to banking services can use its financial services. M-Pesa is the cheapest way to send and receive money and make loan applications. 

With the rapid adoption of mobile money services, M-Pesa dominates. For the context, M-Pesa caters for over millions of people in Kenya and has come to stay. Let us discuss the quick online M-Pesa loans.

 Pros and cons

Pros

  1. It is easy to access online M-Pesa loans
  2. M-Pesa account is cheap and easy to use
  3. Generally used and accepted in Kenya
  4. A local means of payment when you do not have a bank account 
  5. It comes pre-configured to use the apps.
  6. Kenyans are widely aware of M-Pesa and its applications.

Cons:

  1. M-Pesa accounts are often essential to get instant loans. Buy the sim, register and use it for six months before it can be accepted.

Quick online M-Pesa loans

Numerous apps have been developed to accept M-Pesa services and transactions. Once you apply for a loan through the platform, you receive your fund in your M-Pesa account within minutes. 

Several platforms deal in M-pesa loans in Kenya and allow you to get funds on your M-Pesa account. They are:

KCB M-Pesa loan 

Registered customers of M-Pesa go for the loan services of KCB M-Pesa loans. You can deposit and withdraw through the services. You can also get a loan between Ksh.50 and Ksh. 1million based on the loan limit you qualify for. You need a Safaricom Sim already built to house the app and they charge your loans at 3.6% interest rate.

How to apply for a KCB M-PESA loan

To apply for KCB M-Pesa loans, follow the procedure below:

  1. Go to M-PESA menu
  2. Select loans & savings
  3. Choose KCB M-PESA
  4. Select loans
  5. Request loan
  6. Enter amount
  7. Enter M-PESA PIN & submit.

You will receive the loan in your KCB M-PESA account.To access the loan, move the money to your M-PESA. It is free to send and withdraw money to M-PESA from KCB M-PESA.

Rates & Fees

A one-month loan charged at 7.35% interest.

M-shwari loan 

As an M-Pesa user you borrow on this platform at an interest rate of 7.5% monthly. It is a Safaricom product in partnership with Commercial Bank of Africa (CBA) to give loans. Without being an active user of M-Pesa for six months, you can use this service. Borrowing on the app depends on your usage of Safaricom services. You can receive loans in your M-Pesa or M-Shwari account.

Tala loan 

Tala is an online mobile M-Pesa loan app for all citizens of Kenya.With this app you can get a loan based on your credit history. You can get an amount range of Ksh.500 to Ksh.30000 with an interest rate. Download the app from Google play store and you can repay your loan through M-Pesa paybill number. There are options for 7days and 30days for loan repayment.

Branch loan 

Their products are a creation of Branch International, which has been around since 2015.To start using the app, download it from google play store and create an account on the app. It is necessary for you to provide your Facebook account, Safaricom mobile number and National ID. Moreso, you can get between Ksh.250 to Ksh.50000 and can repay with M-Pesa paybill number. 

Timiza loan 

The amount of loan to get on this app depends on your M-Pesa history. It is an App by Barclays Bank in Kenya. You can access up to Kshs.150,000 with an interest of 6.17%. A maximum repayment term of 30 days. On the application you can find out the loan limit, which cannot be exceeded.

Haraka loan 

They provide instant M-Pesa loans to citizens of Kenya between the ages of 18years to 60years. You can access Ksh 500 to Ksh 5,000, with a repayment tenure of 30 days. Here, the interest rate is 23%.

The loan app is owned by a South Africa lender called GetBucks. They also offer their loan services to other parts of African countries. 

Opesa loan app 

To use this device, you have to download the app and register using your M-Pesa number. Loans between Ksh.500 to Ksh.3000 which the interest rate depends on your loan amount. Loan repayment can be done through your Opesa loan app or through M-Pesa platform. Opesa loan App is built and owned by Ten-spot Kenya Limited to Kenyans to get loans via M-Pesa.

Shika loan app

Shika is a mobile loan app that offers quick loans in Kenya via M-Pesa. You need an active register M-Pesa sim to access the loan. Loans are disbursed within minutes to your M-Pesa account. In addition, a loan range of Ksh.500 to Ksh.20000 is accessed with an interest rate of 15%. A fee is charged on late repayment. When you refuse to pay within a period of 3months, your name will be listed to CRB as a defaulter.

Saida loan app

They transfer your fund directly to your M-Pesa account upon loan application and approval. A good credit history is the basis of loan approval. Saida interest rate is between 7.5% to 10%. A minimum range of Ksh.600 to a maximum of Ksh.100000 is accessed with a repayment period of 30days. Repayment of your loan can be done through Lipa Na M-Pesa via pay bill number 854400. 

Note: You can access online M-pesa loans directly on the lender’s website by downloading the app on your phone.

How can I get a quick loan from any of the Online M-Pesa loan platforms 

To apply for loans from M-Pesa platform, follow the procedure:

  1. Launch the M-PESA menu.
  2. Choose Loans
  3. Select the M-Pesa platform you want to use. E.g. M-Shwari, KCB, etc
  4. Apply for the Loan.
  5. Enter the loan amount.
  6. Input your M-PESA PIN.
  7. If approved the fund will be sent to your M-PESA Account.

Eligibility for a Quick online M-Pesa loan

The eligibility needed for online M-Pesa loans include:

  1. Be 18years and above 
  2. Have a national ID 
  3. Have an M-Pesa account as some app would require that.
  4. Possess an M-Pesa sim which has been active for a period of six months.
  5. Have a good credit history. For first-time applicants, do not delete your device transactions and history. Some apps judge your application based on that.

Types of loans disbursed by online M-Pesa platform

  1. Emergency loans 
  2. Personal loans 
  3. Unsecured loans

What happens if you do not pay any of your Quick online M-Pesa loan on time?

However, In the event that you do not repay your M-Pesa loan on the due date, you will be liable to pay a late penalty fee on the amount. 

How to repay your Quick online M-Pesa loans

To repay online M-Pesa loans, follow this method:

  1. Launch your M-Pesa toolkit
  2. Chose lipa na M-Pesa
  3. Select paybill 
  4. Enter the M-Pesa paybill number for that particular app
  5. Enter your phone number as your account number 
  6. Cross check all details
  7. Input your M-Pesa pin
  8. Hit the send option
  9. Get a notification that your loan was successfully repaid.

Conclusion 

The evolution of M-Pesa from simple payment platform to full Fintech solution brought about quick online M-Pesa loans. It’s full Fintech solution was actualized with giving instant loans to Kenyans. M-Pesa is the highest champion of mobile payments in Kenya and other African countries. Since they launched M-Shwari in 2012, a smartphone product, their services extended to other loan apps using M-Pesa. M-Pesa is widely known and used in Kenya. For you to access an instant online M-Pesa loans you should have an M-Pesa account. 

Usawa Loan App – How to Apply and Download the app and USSD code

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If you are looking for fast and convenient means to get loans in times of emergency, Usawa loan app could provide the best alternative. Usawa is one of the best mobile loan service providers in Kenya. You can apply for a loan from the comfort of your home with your smartphone or mobile device. However, you must be a Kenyan or live in Kenya to be eligible for Usawa loan. 

Since its debut, Usawa has received 10,000 downloads with over 1000 active users. 

usawa-loan-app

What you need to apply for Usawa loans 

Most individuals are often sceptical about accessing loans because of the dodgy terms associated with some financial institutions. That is why we have taken our time to enumerate everything you need to know about Usawa loan to clear your doubts. 

Here are some requirements for applying for Usawa loan.

  1. You do not need to have a bank account before applying for Usawa loan.
  2. An Android phone to download and install the Usawa mobile app.
  3. A registration fee of 400 Kenyan Shillings to activate your account.
  4. Aside from the registration fee, they do not require you to bring any form of collateral to acquire the loan.
  5. You must be resident in Kenya and have a Kenyan passport or ID number to be eligible for the loan.

How to apply for Usawa loans 

Once you have fulfilled the criteria listed before, then you are ready to get your Usawa loan. To successfully apply for a loan on the Usawa mobile app, you need to take the following steps below:

  1. Download and install the Usawa mobile app from their website or Google play store
  2. Create an account with the necessary information required
  3. To activate your account, you must pay the mandatory registration fee of 400 Kenyan Shillings. 
  4. Then, you can apply for your loan.
  5. Submit your application.
  6. When your loan is approved, you will receive a notification. Usawa will then deposit the funds into your M-Pesa wallet on the app. 

As a first time user, you may not be qualified to apply for some loan amounts. Usawa will request that you fill a questionnaire which will determine your loan amount and pay the membership fee as well.

Usawa Membership fees and paybill

The Membership fee for Usawa loan is KES 400. All members who pay the membership fees qualify for the first loan. You can pay via M-pesa following the steps below:

  1. Launch M-Pesa on your phone 
  2. Choose paybill number 
  3. Type in the paybill number as 138103
  4. Enter your phone number as your account number 
  5. Input your M-Pesa pin
  6. Wait for a confirmation SMS from M-Pesa

Usawa loan interest rate

The interest rate for the Usawa loan is 12%. They charge this on each amount you apply for.

Usawa loan repayment period

Usawa has a repayment duration of 91 days minimum and 36 months maximum 

Minimum and maximum loan amount for Usawa loan

The quick Usawa loan platform offers loans ranging from Ksh. 500 to Ksh. 1,000,000. As you progress, the loan limit increases.

Usawa USSD code

You can dial *483*012# to register and apply for the loan. Those who cannot download the app on their phones or those who do not own a smartphone mainly use the USSD code. 

How to download Usawa loan app

The procedure below is the steps you can follow to download Usawa loan app:

  1. You can download the Usawa loan app by visiting the website or Google play store.  
  2. Click the application and then select install to download the app
  3. Proceed to create an account on the app
  4. After that, you can start applying for loans.

How to repay Usawa loans

Usawa loans are strict with their repayment policy. After receiving your loan, you must pay back on or before the due date as late repayment attracts extra charges. You can pay back your Usawa loan through your M-Pesa Paybill with these simple steps:  

  1. Log into your M-Pesa through your Safaricom SIM Toolkit. 
  2. Select the ‘Lipa na M-Pesa’ option on the menu bar.
  3. Type your Usawa Paybill Number into the available column. The official Paybill Number for Usawa is 138103. 
  4. Input your M-Pesa phone number in place of your account number. 
  5. Next, fill the loan amount you want to repay. 
  6. Then, type your unique M-Pesa pin. 
  7. Cross-check your details before submitting your payment. 

How to contact Usawa loans

If you encounter any challenge while applying for your loan, you can contact their customer care agents through these channels:

i. You can call or send an SMS to +254790639990

ii. Or email admin@usawa.co.ke

iii. You can also check out their website.

Conclusion

Usawa serves as a source of financial aid for individuals who cannot meet the rigid terms and conditions of obtaining loans from banks. It is easily accessible and repaying your Usawa loan on time increases your credibility to acquire more loans. You are also qualified and eligible to apply for larger loan amounts if you pay on time.

How to qualify for KCB loans- All you should know

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How to qualify for KCB loans is a question this article will answer. The KCB loan application process is simple. Customers can borrow from KCB for a variety of amounts ranging from kshs. 1,000 to Kshs. 1,000,000. Their loans are accessible and affordable. Follow along with the discussion.

About KCB loans and group

KCB Group is a licensed banking institute and registered non-operating holding company. It started operations on January 1, 2016. The holding company oversees KCB Kenya. KCB Kenya renders financial services to the people. They offer different types of loans to the people. KCB group has regional units in Uganda, Tanzania, Rwanda, Burundi, Ethiopia and South Sudan. 

It also owns KCB Insurance Agency, KCB Capital, KCB Foundation, National Bank of Kenya and all associate companies.

How do I qualify for a KCB loan?

What KCB needs from you to qualify for the loan include: 

  1. Valid Kenyan ID or passport.
  2. Recent original Payslips.
  3. Evidence of source of income for self-employed persons.
  4. Be an active KCB account holder for a minimum of 6 months
  5. For credit card advance, possess a KCB financial card

Eligibility to qualify for KCB loans

  1. Be 18years and above
  2. Have a valid national ID
  3. Possess a registered sim

How long does it take to process a KCB loan?

KCB loans are gotten once you qualify and are done with the application. At most, expect it within 7 working days.

Different categories of KCB loans

  1. Personal secured loans
  2. Personal mobile loan 
  3. Unsecured checkoff loans
  4. Emergency loans
  5. Salary advance 
  6. Business loans
  7. Sharia Compliant personal loans 

How to apply for KCB loan 

Applying for KCB M-Pesa loan is simple. Just follow the steps below:

  1. Visit the website to apply from there
  2. Fill all required information
  3. Get a feedback, apply and Submit all documents if requested for
  4. Wait for approval, if approved, you get your loan within a few hour

Conclusion

KCB loans are easy to qualify for. It is also very easy to get the loan. Go ahead and apply once you qualify. Different types of loans are available. Every loan type serves a purpose for a particular goal. The purpose of this article has been to talk about the eligibility to qualify for KCB loans and how to qualify equally. Take advantage of KCB loans and all the features that come with them.

Loans in Kenya without Security explained

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It is common in Kenya to get loans without security. It comes with minimal requirements and funds are received instantly. Loans in Kenya without security are easy to access and qualify for. The purpose of this article is to direct you on how to apply, some platforms to apply from and how to qualify. 

loans-without-security-in-kenya

Facts about loans in Kenya without security 

You can easily secure loans in Kenya without security but one thing is certain, it attracts higher interest rates. Unlike secured loans that come with lower interest rates. Loans in Kenya without security are loans you apply without presenting any collateral or instrument as backup for the loan. 

In addition, you may not get a higher amount by most lenders due to the involved risk. Some lenders use the collateral as backup in case of loan default.

Other than that, loans without security are simple and quick to get.

How to apply for loans in Kenya without security 

  1.  Visit lenders online or offline and check their features
  2. If you wish to use a mobile app, download the app from Google play store. 
  3. Register online by filling the form or create an account on the app
  4. Upload all necessary documents of requested for
  5. Apply for the loan based on the loan limit
  6. Input your account number 
  7. Wait for loan approval 
  8. Once approved, get your loan

Lists of loans in Kenya without security 

Generally in Kenya, there are various credit platforms and financial institutions that gives funds without security and they are:

  1. M-Pesa loan apps like: Tala loan app, Branch loan app, Zenka loan app, KCB M-Pesa loan app, Mshwari loan app, etc
  2. Banks like: Equity bank, NIC Bank, National bank online loans, KCB unsecured loans, etc.
  3. International loan platform like: International finance corporation, etc
  4. SACCOs
  5. Credit unions 
  6. Online emergency loan lenders

What qualify my eligibility for loans in Kenya without security 

  1. Credit rating and worthiness 
  2. Financial stability 
  3. Age limit
  4. Have evidence of proof of age
  5. National ID to prove citizenship 

How is the repayment terms like? 

  1. Some ranges from 30days to 60days
  2. Attracts an interest rate of 6% to 15% depending on the lender

Categories of loans in Kenya without security 

  1. Personal loans
  2. Business loans
  3. Emergency loans
  4. Salary advance 

Conclusion 

This article shows the various alternatives you can choose from when looking for loans without security. The first amongst them is mobile loans. Mobile loans are easy to access and just one tap on the phone, you get your loans instantly. Your other alternatives include private lenders, international financial firms, online loans, SACCOs, etc. 

Compare and evaluate the above mentioned in this article. We shall be updating this article as soon as we come across other viable credit platforms in Kenya without security. 

How to access student loans- A step by step guide to getting student loans in Kenya

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How to access student loans is what every student should learn how to do in case of any future emergency. Education is an investment, and it is often worth it to borrow money to finance your studies. If you cannot pay for college through scholarships and work-study programs, you may be required to take out a student loan.  

Getting a student loan is fairly straightforward. Applicants will apply for the loan from either a government or private lender, then wait for the funds to be disbursed to their school or accounts.

how to access student loans in kenya

About Student Loans

As a student or a parent in Kenya, there are a few things you need to know about student loans. Note that you may get approved for a loan in as little as three minutes with a private lender and a few weeks with a government lender. Other things you need to know include:

  1. You will have to pass a credit check to get a private loan.
  2.  They may require a cosigner 
  3. You can find different applications for private student loans on lenders’ websites. 
  4. They will require you to provide financial and identification documents  

How to get a Student Loan in Kenya

The following steps can help you get a student loan in Kenya:

  1. Estimate your expenses and know that education is expensive
  2. Check your eligibility
  3. Decide whether to apply through a private lender or a government lender
  4. Decide the duration and repayment
  5. Make your application
  6. If approved, get your cash.

Where to get student loan 

First, shop around for different lenders, looking at their options and interest rates, as well as their repayment flexibility and other options. Therefore, in learning how to assess student loans in Kenya, check:

  1. Banks
  2. Credit unions,
  3. State-based agencies like higher education loan board Kenya and 
  4. Online lenders 

Types of students loans

Various sources of student loans exist, including the federal government, banks and financial institutions, and other organizations. There are several types of student loans available:

  1. Subsidized Loans: Subsidized Loans are the gold standard for student loans. The taxpayer will pay the interest on your loan while you are in school if you qualify and take out a Subsidized Loan.
  2. Unsubsidized Federal Loans: This is the second best option if you need to borrow student loans for your education. They consider subsidized loans to be the gold standard, which is one of the major differences between them. You will take care of the interest from the start. Your unsubsidized loans will not have to be repaid like subsidized loans, including interest.
  3. Federal student loan: This is the type of loan offered by the federal government and comes with protection such as income-based repayment, deferment and forbearance options, and the ability to merge your loans if necessary.
  4. Private Loans: This is a non-federal loan gotten from a lender, a bank, credit union, or a school. You will typically consider paying a private loan back right away, and interest rates can be extremely high through some private lenders. 

How to determine your eligibility for student loans 

To determine your eligibility for student loans, you will need to:

  1. Complete the free application form and your personal information will be lifted from the form. 
  2. You will need to meet deadlines for each loan platform, so make sure you are up to date on current deadlines.
  3. Provide your national identity card 
  4. Copies of bank statements and investment records (if applicable)
  5. Your school identity card and other documents.

How to get a Federal Student Loan

  1. Start by logging in on their website
  2. Create your profile
  3. Submit a free application. Find out how much financial aid you may qualify for, such as grants, scholarships and work-study, that won’t have to be repaid. 
  4. Complete the rest of the application process by uploading all necessary documents. 
  5. Your application will be used to determine your financial eligibility.

How to apply for a private student loan

  1. Visit the lender’s website 
  2. Read how to apply the page
  3. Create an account on the site
  4. Proceed with application and supply all necessary information and your account details 
  5. Upload all documents 
  6. Wait for loan approval
  7. Once approved, get your loan.

5 Banks Offering Student Loans in Kenya

Banks often offer student loans at competitive rates and with discounts. The requirement for eligibility is also extensive, so if you do not have perfect credit, the possibility might be lessened. Here are a few banks that offer student loans in Kenya:

  1. KCB bank loan
  2. Bank of Africa
  3. National Bank of Kenya
  4. Equity bank
  5. Musoni microfinance bank 

Processes of Approving Student Loans

Most times, lenders such as credit unions and private individuals run a credit check to determine if you qualify. This process primarily involves checking out the credit history, income, repayment history, and terms of the loan for the individual. They also evaluate you based on whether you meet the requirements.

How long does it take to get a student loan from a bank?

From the time you submit your application until you receive funds, plan on around a few hours to three weeks to get a private student loan in Kenya. Both private and federal student loan lenders have their own rules for approving loan applications.

Conclusion 

Getting a student loan is relatively straightforward, but you may need to wait for some time after accepting the loan to see the money disbursed into your account. Besides federal student loans, there are private student loans as well. Know what you need and go for it. Do not forget to plug your loan details into an amortization calculator to find out how much you will have to pay each month and how much interest you will pay over the life of your loan.

Are Payday Loans Really Bad? Find out Yourself

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Seeing so many bad write-ups online about payday loans and you stop to ask the question; are payday loans really bad? Well, you will find out yourself.

When it comes to debt, frightening terms like “debt traps”, “high-interest rate” and “debts cycle” are often associated with articles that give readers a scary picture about payday loans. Some people also say that there is nothing worse than payday loans. That’s the verdict of some people. But is that really true? I mean payday loans are loans and you need money, so obviously not everyone will agree with them being bad. So let us look at it a bit closer and discover if payday loans are as bad as everyone says they are.

Are Payday Loans Really Bad?

Views About Payday Loans

There is a lot of controversy about payday loans. Some people say they are a godsend for those with poor credit and no savings. Others say they are predatory, charging enormous fees and interest rates. I am going to look at both arguments and let you know whether payday loans are good or bad.

Payday loan services have earned a firm place in the public’s eye and the business community. On one hand, they cater to sectors like manufacturing and retail that are often left out of other financial services’ purview.

While on the other hand, they are so expensive due to people have taken them in open contempt. But is this hatred justified or are payday loans really bad? You will find out yourself in this article.

What do payday loans offer that traditional and/or other credits don’t?

Not all payday loans are terrible. There is a way to get this credit without suffering long-term consequences.

1. Quick Approval

Payday loans are very common in today’s society. It is easy to apply and you get your money in a second. Tons of people use this service every day because, within a few seconds of the credit application online, you have gotten your funds. 

You probably know a couple of people that ask you for a loan as soon as their paycheck is over, so they can pay some bills or buy at least a little something to eat. Regardless of what you think about this type of loan service, it is growing in popularity.

2. Easy Application

Payday loans are a fantastic idea for helping people who need short-term credit. That being said, you can just pick up your phone and apply for such a loan.

No rigorous processes are involved. All you need to do is download the app or visit the lender’s website or office and fill out the application forms and supply all necessary information and get your cash in a second.

3. Short-term requirements

When someone wants to get a payday loan, it is probably a sign that something is wrong. They may need money quickly and don’t want to wait for a paycheck in the mail. However, borrowing money can cause problems if it isn’t paid back on time. So as the requirements are easy, make it also easy to repay as at when due.

Their requirements also come in handy. You are requesting just a small amount of money and you are asked to bring a guarantor, collateral, and other long documents which can take time to get. Payday lenders know that you are getting this credit for a pending emergency and they will treat it as an emergency.

4. 247/Accessibility

Debate is still raging over whether payday loans are good or bad. Regardless of your position, you should factor in the 247/7 accessibility as one of the reasons why payday loans are unique. 

These are factors that you should consider before applying for a loan. They are consistent and always available online and offline equally.

5. Available online

The Payday Lending System (or Payday) refers to a type of credit that has been designed for everyone but is especially an advantage to lower-income customers. You can apply for this loan online with your smartphone.

The system is used by lenders, credit unions, and other financial platforms to provide access to smaller loans instantly. Instant loans are often associated with online loans which come quickly.

6. It favors those with bad credits

If you work in today’s business world, there are probably a lot of people borrowing from each other. Some employees even ask for loans from their coworkers to cover bills. Others use the money to cover short-term expenses or to buy food. Although these practices might seem unprofessional, they are becoming more common. 

However, when you have borrowed and can’t pay it back, you have already soiled your credit score. But payday loan lenders favor people like this in terms of emergencies with small funds but come with a very high-interest rate.

7. No collateral

Nowadays, the majority of the population has to work really hard just to survive. Then to survive, you might need a loan from time to time. 

When you have chosen a lender, be rest assured that they don’t request collateral. 

Well, most people use payday loans for that extra push and might not have the instrument to take credit from banks and other institutions in Kenya. Hence, they will be choosing payday loan lenders.

Pros and Cons of Payday Loans

Pros of Payday Loans

  1. For people who need money quickly and can’t wait for a scheduled paycheck, payday loans are an option to consider. It is important to pay back the loan on time so as not to compound financial issues.
  2. It can be an emergency loan measure to cater for an unplanned event.
  3. Payday comes in fast, without much delay
  4. It is applied by most people because most times it comes in handy
  5. It is always available online and offline
  6. Not rigorous and also comes with minimal requirements
  7. Can favor those with bad credit

Cons of Payday Loans

  1. A payday loan is a bad idea if the interest rate is high and you may need a lower interest rate credit
  2. It may also be a bad idea if it is not paid back on time. It may be a sign that something is wrong and that you lack the financial ability to pay for your basic needs in a timely manner. Thus, you will pay double.
  3. Most times people are stuck in a debt cycle because of Payday loans.
  4. Payday loans can cause serious financial problems if they aren’t paid back in two to three months.
  5. Sometimes the terms and conditions may be hidden.

Things you should know about Payday Loans

  1. Payday loans are usually small credit that should be repaid in a single payment.
  2. At times, you will wind up paying twice as much on interest 
  3. Most times at worst you could get stuck in an impossible cycle of perpetual debt given the exorbitant interest rates.

Conclusion

Payday loans are growing in popularity. When a person’s paycheck gets small, they can use these loans to buy what they need until the next payday.

However, it comes with a high-interest rate and that is why most people run away from it. It can also put you into a serious financial problem or debt cycle if you fail to repay the loan.

The obvious still remains that if you are caught up in a financial emergency, payday can be the solution because it comes in handy and gets delivered within a few minutes of application. Many people use this service every day, and many more will continue to do so in the future.

When is it okay to take Small Personal Loans for Business Use?

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How do you know when it is okay to take a Small Personal Loan for business use? Most small businesses will never need any loans, but sometimes they need a loan to stay afloat. The answer is: If your business is struggling, and it’s the only way out of debt, then small personal loans will keep your business going until you can find funding elsewhere.

What is a Business Loan

A business loan is a loan that is given for the purpose of running or developing a business. It is a type of unsecured loan used by small businesses to finance their everyday expenses. This can be difficult since many banks are reluctant to offer credit to smaller businesses.

On the other hand, using a business loan can be beneficial, as they generally come with lower interest rates and better terms than loans offered to individuals. However, you will need to be able to demonstrate a genuine need for this type of loans such as a lack of working capital or an immediate requirement for purchasing equipment.

What are Personal Loans

A personal loan may just be the most versatile financial product you can get. Personal loans are great if you need money to start a business, remodel your home, pay for education or consolidate debt.

Personal loans are similar to mortgages, auto loans, and credit card debt in that all four types of debt require monthly payments. However, personal loan interest rates tend to be higher than mortgages and lower than auto and credit card rates. Personal loans are best for people with good excellent credit.

5 Pros and Cons of a personal loan?

5 Pros of Personal Loans

  1. Very easy to apply for
  2. Small personal loans and payment is within 24 hours
  3. Comes with no collateral
  4. Saves time, energy, and resources to apply
  5. Easy to see lenders that give such loan in Kenya

Cons of Personal Loans

  1. Comes with high-Interest Charges. Carries fees and Penalties if you default. 
  2. Inability to pay leads to Credit damage
  3. Depends on your credit history 
  4. Since it is easy to get, it might result in unnecessary debt.

5 Considerations in which Small Personal Loans can be used for Business Purposes

A small personal loan is a versatile loan option that can be used for almost anything you want. A personal loan, also known as an unsecured loan, does not require collateral to be secured against the loan. The consideration to use it for business purposes includes:

1. When you need a small loan

If you are a young entrepreneur in need of a small loan, there are certain things to look out for. It’s not easy to get a small business loan when you have spotty credit. Having bad credit means that hardly any banks will loan to you. This is why you need to take these steps if you want to secure the money you need for your business. 

So you take a Small Personal Loan when you need a small loan to offset an amount for an item pending the exact time to make money to pay back.

2. When you need a small personal loan in a period of time and prepayment

When you need a small personal loan, focus on the faster and shorter-term loans. They are specifically created to meet your needs and are fast to obtain too. You don’t have to waste time with the long process of getting a loan in other cases. Not being able to get one due to various factors may be a problem for some, but not anymore. The latter type of loans are those that are easy and quick to obtain for people who need a little money in their pockets for things such as paying bills, medical expenses, and so forth.

3. When you are asked to bring collateral for a business loan

A small personal loan is a short-term contract, and this is at a time period of 14 days without any collateral. Therefore, the loan agreement is concluded within a period of 2 weeks. It is one of the fastest types of loans that help borrowers to solve financial problems.

At the same time, it is not only easier but also faster than traditional loans which take several months to be approved and involve many other procedures and collateral

4. When your need is urgent

Have you ever wondered when you need a small personal loan in a period of urgent need? What is the meaning of small personal loans for urgent needs? A personal loan is a capital you borrow from a financial institution without using any asset as collateral. This loan is usually from Ksh 1,000 – Ksh. 35,000+. The fund I used for various purposes but especially for urgent needs.

5. When there are no other options available

Have you been rejected by all other lenders, assuming that you will never get a business loan?

Small business loans are not always easy to come by.

In fact, many startups and small businesses have a hard time getting bank loans because they don’t qualify under traditional lending guidelines.

Understanding Small Personal Loans for Business Use

When you are starting out, you don’t need to have a lot of money to invest in your business. Taking out small personal loans is a good way to obtain business funds without risking your own cash flow as well as taking on significant debt. Smaller personal loans in Kenya can range from Ksh. 1,000 to Ksh. 3,000 or more, depending on the type of business and your personal credit score. 

You can get approved for these loans by filling out an online application and then sending in proof of income and bank account information so lenders can verify that you’ll be able to make monthly payments.

Small Personal Loans for Business Use in Kenya

Small personal loans are a great way to get money quickly without having to fill out a lot of forms or wait weeks for the store to credit your account. They’re also fairly easy to get approved for, assuming you have enough time in business and your credit score is high enough. That said, there are several reasons a small business owner should keep an open mind about personal loans before deciding it’s the best possible choice.

In what situations are small business personal loans appropriate to take?

There are good reasons to take out a small business personal loan, which includes;

  1. Saving time and resources
  2. When there is an emergency fix for the business
  3. Merging costly credit card balances and financing the business 

Why can’t businesses use small personal loans?

Businesses can use small personal loans, but taking such loans for your business can negatively affect your personal finances. Even though you are using the loan for fixing your business, the debt is still in your name. 

Most lenders may not extend the loan to you if it looks like you have a lot of debt.

Is it bad to take small loans for your business?

It is not bad to take a small personal loan for your business. Moreover, a personal loan can be a good idea when you use it to reach a financial goal. Goals like:

  1. Paying down debt
  2. Boosting the business
  3. Paying for equipment bought for the business and for so many other reasons.

What do we consider using small personal loans for business?

When you meet with the lender and he is not against you using a personal loan for your business, you can use the fund to:

  1. Purchase equipment and the payoff for other inventory
  2. Kick-start your marketing efforts 
  3. Put the funds toward other costs you encounter in the business.

Can I put a small personal loan through my business?

Yes, most lenders offer a reasonable amount of money. Moreover, some small personal loans can:

  1. Fund a new or existing business for you
  2. Buy materials for your business and so many other things.

However, before applying for any small personal loan, ‌research and check that the lender doesn’t impose any restrictions for business use. 

Note: It will save you resources in the future to read through the loan’s conditions to see what is allowed and what is not allowed.

Do business loans use personal credit?

Yes, business loans can use personal credits. Most lenders before offering you loans, will look at your personal credit history when determining your eligibility for a business loan. However, some lenders will not look at your personal history, so it varies. 

Can a business loan pay off personal debt?

Generally, it is not ideal to use business loans to pay off personal debt. Thus the question: Can I use a small business loan to pay a personal debt? You can’t, truly. However, it is practical to use only a business loan for business.

Conclusion

One thing to keep in mind before you borrow a small personal loan for a business is that it can take time to make money. This is not something you can rush, and if you do, it is extremely risky. 

If the business doesn’t make money within the allotted ‌time, you could end up defaulting on your loan. In summary, when it is great to take a small personal loan for business is when in great need or you have looked elsewhere for funds and you couldn’t get one.