Shelter is a basic necessity and one of the three most important basic needs of man. In fact, people who can afford this basic necessity in Kenya are few. Financing being the hindrance.  In search of ways to assist in finance of home and property,  financial institutions have designed mortgages to enhance adequate housing delivery. Thus, owning a property through mortgage arrangement.

In addition, a mortgage loan in Kenya is the best form of loan to owning a property or a home. If you are looking to purchase a property or a home through mortgage, this article is for you. Follow through and learn all you need to know about mortgage in Kenya. 

What is a mortgage?

A mortgage is a loan gotten from financial institutions for purchase of a property or a home. Once the loan has been approved and the property owner settled,  the borrower takes the ownership of the property. The bank takes the title of the property until the borrower fully makes the mortgage repayments. See it in the actual sense that the borrower uses the property as a collateral. 

Types of mortgages in Kenya

In Kenya there are two types of mortgages, they are:

1. Fixed-rate mortgage and
2. Adjustable rate mortgage

Fixed-rate mortgages 

In this type of mortgage, the interest rate is fixed till the whole repayments are done. It is more expensive because the amount remains the same during the lifetime of the loan

Adjustable rate mortgage

The interest rate in this type of mortgage keeps changing depending on the market structure. The loan repayment keeps reducing. It is the most common type of mortgage operated in Kenya.  The reason for the changes in the interest rate is because they transfer the part of the risk of the loan to the borrower.

Processes of getting a mortgage loan

The processes for getting mortgage loans includes:

1. Appraisal and approval. Knowing if you qualify for the mortgage loan.
2. Property search and viewing. 
3. Loan processing and provision of required documents needed.
4. Offer/issuance of offer letter. 
5. Perfection of instruction and acquisition of property used as collateral 
6. Making payments to the seller of the property by the lender.

Also check out how to apply for mortgage loans in Kenya

General Documents required for mortgage loans in Kenya

There are general documents required for mortgage loans in Kenya and they include:

1. Copy of the title, which has a minimum free lease duration of 45years.
2. Offer letter from the seller for outright purchases
3. Standing order proving direct debit or employer’s irrevocable check-out letter
4. For spouse applying together, provision of a copy of marriage certificate 
5. Valuation reports which often attract a valuation fee
6. Evidence of rents and rates. That is receipts showing latest payment to the city council
7. Life insurance quotation and medical checkup for application above 20m
8. Rental assessment report for landlords using rental income for mortgage.

Parameters used in scoring approval of mortgage loans in Kenya

There are certain factors that would be checked thoroughly before they can approve your mortgage loan application. They include:

1. Total income 
2. Sum amount of your personal expenses
3. Credit score
4. Whether you possess a solid source of income
5. The duration of the contract
6. Details of the property
7. Age of the borrower 

Some mortgage providers in Kenya and their interest rates 

Lists of mortgage providers in Kenya range from:

1. Housing finance group: They have a mortgage interest rate of 13%
2. Standard Chartered Bank Kenya with an interest rate of 12.2%
3. Consolidated bank has 15.1% as their mortgage interest rate
4. Barclays bank Kenya- 14.4%
5. Kenya commercial bank – 13.3%
6. Citibank Kenya – 12.5%
7. Co-operative bank – 14.9%

Check out other related articles to help you in your loan search

• Home Loans in Kenya Explained
• Type of loans in Kenya you can apply for in 2021
• How to write a loan application letter in 2021
• Loan apps in Kenya: Reviews and Explanations

Charges associated with mortgage loans

Before you get the full acquisition of the property, there are other charges within mortgage loans that you need to pay. They are:

1. The main mortgage interest rate
2. Negotiation fee, which is often 2.5%
3. Stamp duty
4. Commitment fees
5. Legal fees
6. Valuation fees
7. Ledger fee which is charged on a monthly basis.

Conclusion 

Mortgage loans have advantages ranging from living in your dream house to rendering a full potential for profit making when house prices rise. Financial institutions have made it easy for all who qualify to gain homes through mortgage. We believe you have learnt all it takes. Qualify and get your papers ready. That dream house would be yours.

When you are looking to buy a house or own a home and you don’t have enough to fund it. You can take up a home loan in Kenya.

Home loan enables you to buy lands or build your dream house. Get your documents ready and be honest with every single detail. Have a consistent income. Then you are ready to take up a home loan.

We will take you through a home loan application and all you need to know.

What is a Home Loan?

Home loan is a loan designed to help individuals own a house or purchase and develop commercial properties.

It is a loan taken to purchase plots of land to rent out for commercial usage or private usage. With a home loan, you can become a landlord in a few years after repayments. 

General Features of a Home Loan

1. Home loan is only for construction of a new house or purchase of a ready-to-move-in property
2. Interest rate is low compared to mortgage 
3. Typically, between 0.8% to 1.2% of the loan value
4. Up to 30 years

Difference between home loan and mortgage loan

Home loan is a loan for buying or constructing of houses while,

Mortgage loans are loans taken against a property that the borrower already owns.

How do you qualify for a home loan?

To qualify for a home loan, you need:

1. Credit score of at least 620 points and above 
2. APR and DTI ratio should be less than or equal to 50% to qualify for a home loan.
3. Have a consistent income flow
4. Be ready and willing to reveal everything single truth and present all documents required. 

Credit score for a home loan

You need a credit score of 620 and above. It involves enormous sums and lenders are not ready to lose or give out their fund just like that. You need to have a good credit score to qualify. 

How to improve your home loan eligibility 

To improve your home loan eligibility:

1. Check out for errors on your credit report 
2. Ever ready to respond to your lender

How to get your home loan approved

Because of the enormous sum involved in home loans, lenders conduct strict observation and scrutiny before disbursements. To get your home loans approved, you need to;

1. Be aware of your financial situations
2. Make a higher down payment
3. Have a good credit score
4. You can use a co-applicant like your parents
5. Keen details to application forms and documents.

Some home loan lenders in Kenya 

Some home loan providers in Kenya include:

1. HF groups
2. KCB
3. NCBA Bank
4. Stanbic Bank of Kenya

The HF groups 

They are private lenders that give out home loans in Kenya. 

Features

1. Up to 90% financing of the selling price or value
2. Maximum loan term of up to 20 years for employed individuals and 10 years for SMEs and groups
3. Product is for outright purchase of a home

Benefits

1. Our Home Loan provides you with an affordable way to buy a home with
2. Loan repayment duration of up to 20 years for occupied homes there is tax relief for customers
3. Mortgage protection cover in case of death or disability
4. Includes insurance cover for fire

Requirements for Employed Persons

1. National ID 
2. Passport copies
3. KRA PIN Copy
4. 3 months payslips
5. 6 month’s salary bank account statements
6. Letter from employer

Requirements For Self-Employed Customers

1. National ID
2. Recent Passport photograph
3. KRA PIN Certificate
4. 3 years audited books of account
5. 1 year bank statements
6. Certified copy of partnership deeds (for partnerships) and Rental schedules (for landlords)

Fees & Rates

1. Commitment Fee of 1.5%
2. Valuation fee of approximately 0.5%
3. Legal Fees of approximately 1-2%
4. Stamp duty of 4%

KCB bank

The KCB is one of the biggest banks in Kenya, with a strong capital and assets base that provides a home loan.

KCB home loans features:

1. Appraisal fees at 2.5% of loan amount
2. Ledger fees of Kes 350 per month
3. External Application Fees
4. Mortgage Plus Fees
5. Negotiation Fee of 2.5% of loan amount
6. Ledger Fee of Kes 350 per month.
7. Legal and valuation Fees
8. Stamp duty at 4% of cost of property or value on the open market
9. Stamp duty on charge at 0.1% of loan amount
10. KCB can finance insurance premium
11. Charges are not inclusive of tax

Visit their website to find out more about KCB KCB loans 

NCBA bank 

NCBA home loans features

1. Competitive Mortgage interest rates
2. Friendly loan terms
3. Loan repayment periods of up to 25 years.

Features

1. Mortgage loan facilities of the loan amount in local currency, 1.5% of the loan amount in foreign currency.
2. They offer NCBA mortgage loans in Kenya Shillings, Dollars, Pounds, and Euros.
3. 105% Financing of property value or market price, whichever is lower.
4. Maximum term of up to 25 years.
5. They calculate home loan Interest on a reducing balance basis.

Stanbic Bank home loans

Stanbic Bank home loan features:

1. Up to 105% finance of properties below Kes. 20M
2. Up to 100% of finance for construction of single residential houses below Kes. 20M
3. Loan tenure–up to 20 years (240 months)
4. Debt to income ratio–should not exceed 50% of net salary
5. Minimum loan amount–Kes. 1M
6. Minimum property value–Kes. 3M
7. Free cover limit for loan amount Les. 30M and below
8. Only available to salaried customers in local currency

Visit their website to read up more 

General requirements for a home loan

1. A completed and signed mortgage application form.
2. Your Original ID/Passport (plus copies)
3. 6 months certified bank statement.
4. 3 months’ pay slips.
5. Sale agreement or letter of offer(for purchase mortgage only)
6. Letter of introduction from an employer.

Benefits of home loans

Benefits of home loans include:

1. Easy repayment 
2. Mortgage cover
3. Fire insurance cover from some lenders 
4. Longer repayment duration 
5. Tax relief from some financial lenders.

Simple ways to make easy repayment 

Ways to make easy repayment of home loans:

1. Pay a down payment of over 20%
2. Make a part payment
3. Go for short tenor repayment duration 
4. Choose a lender with low interest rate
5. Never miss your monthly repayment 
6. Take advantage of home tax exemption

How to repay home loans

There are general ways of repaying home loans. Different lenders have different ways of collecting their loan repayment. They include:

1. Login or locate your M-Pesa account 
2. Select paybill 
3. Enter the business number
4. Enter your phone number as your account number 
5. Type in the amount you want to repay
6. Enter M-Pesa pin
7. Confirm details and press ok
8. Repay your home loan

Note: you can also repay through your bank account. By writing a standing order to your bank or transferring directly to the lender’s account. 

Conclusion

During the home loan application process, it is pertinent that you reveal all information which applies to your personality. Be true with it. Know what you are going for and every single detail. If not, they might reject your Home Loan application. If you are not sure about your eligibility, you can use Home Loan Eligibility Calculator to avoid Home Loan rejections.

Lenders and borrowers continue to rise as nearly every sector and individual struggles with insufficient funds to deal with their daily transactions. Getting loans in Kenya is feasible and easy. It gets easier when you face multiple alternatives to select from. 

Considering this factor, loans in Kenya have really come in handy. What’s more good about it is that it can be gotten within minutes after filling the application form.

Technology and innovative digital services in Kenya made everything so simple. With all these in mind, let us discuss loans in Kenya.

About Loans in Kenya

Kenyans can get loans from a variety of sources, including mobile phone apps, banks, mobile network providers, and credit cooperative organizations (SACCOs).

There are now more than 40lending platforms in Kenya, and new services keep launching. Likewise, the hype is growing about the possibilities these products offer, from increased household liquidity to small business loans for entrepreneurs.

Many users value the convenience and speed of accessing a loan via their phone, as well as their bank. New borrowers and lenders rise because of this rapid proliferation.

How Do I Apply For a Loan

There are many ways you can apply for loans in Kenya. You can apply through the bank, credit union, loan apps, etc. Then to apply:

1. Simple begin by visiting the bank or the lender or downloading the loan app
2. Fill the application form
3. Register and submit all relevant documents
4. After successful registration, apply for the loan.
5. Choose the loan amount and repayment term
6. Wait for approval. Once approved, get your loan.

Who Borrows And Why

Loans have benefited many people who would otherwise have remained financially bankrupt. The individuals eligible to borrow include:

1. The poor
2. Men
3. Youths (18years and above)
4. Business individuals and 
5. Women.
6. All citizens of Kenya from 18years to 68years.

Furthermore, individuals borrow for different purposes which could be:

1. To fund or expand a business
2. Buy or purchase a car
3. Offset a debt
4. To pay for school fees
5. To buy a house and various other reasons.

5 Documents For Loan Applications 

To start a loan application in Kenya, there are documents you need to possess before you can qualify for a loan. These documents include:

1. National ID or passport proving identity 
2. Pay slip
3. Account statement
4. Passport
5. KRA pin

Rates And Fees Associated With Loans in Kenya

Digital borrowers in Kenya are meant to pay up some fees when taking up a loan. The fees are often to allow the lender to allow you to keep his or her for a period. The fees associated with loans in Kenya are:

1. Interest rate
2. Negotiation fee
3. Application or processing fee
4. Origination fee
5. Appraisal fee
6. Late repayment fee

What Determines How Much Interest You Will Pay on a Loan 

Lenders use a lot of factors to determine interest rates. Risk is a key factor that lenders consider when making decisions. While some prefer very little exposure to it, others are more tolerant.

One thing is for sure: a risky investment will cost you more. Here are some ways lenders measures the risk of investing in you loan you applied for:

1. A high credit score reduces the interest rate
2. Secured loan lowers the rate
3. Short loan duration brings down the rate
4. Size of the loan amount impacts your rate
5. Reasons for borrowing can also affect the amount of the interest rate to pay

How Can I Get Loans in Kenya 

To get loans in Kenya, follow the procedure:

1. After all due processes and submission of documents and application
2. Submit your account details or M-Pesa account details
3. Check your account for the fund.

10 Banks That Offer Loans in Kenya

The list if banks that offer loans in Kenya are:

1. KCB group
2. Musoni microfinance bank
3. Absa bank Kenya
4. Family bank
5. HF bank
6. National bank
7. Ecobank
8. Standard chartered bank Kenya
9. Equity bank
10. Sidian bank
11. Stanbic bank
12. Bank of Africa

8 Loan Apps in Kenya

The list of 8 loan apps in Kenya are:

1. Mshwari
2. KCB M-Pesa
3. Tala
4. Branch loan
5. Okash
6. Timi

10 Banks That Offer Loans in Kenya

The list if banks that offer loans in Kenya are:

1. KCB group
2. Musoni microfinance bank
3. Absa bank Kenya
4. Family bank
5. HF bank
6. National bank
7. Ecobank
8. Standard Chartered Bank Kenya
9. Equity bank
10. Sidian Bank
11. Stanbic Bank
12. Bank of Africa

8 Loan Apps in Kenya

The list of 8 loan apps in Kenya are:

1. Mshwari
2. KCB M-Pesa
3. Tala
4. Branch loan
5. Okash
6. Timiza
7. Shika
8. Haraka

Conclusion

In recent years, many in the financial sector supported loan applications because they saw that loans could be used by unbanked or under-banked customers to meet their needs.

In loan application, the amount you borrowed, and the interest accrued will be the two largest chunks of the payments you will make, but they are not the only ones.

As with loans in Kenya, do your homework and be informed to make the best decision. You read this article, so you’re well on your way!

Unemployment is the greatest problem facing a man. When you are unemployed, you do not have any income, but expenses keep coming directly and indirectly. In the past, as an unemployed person with no steady and strong income, financial institutions can not give you a loan.

In recent times, the heightened competition in the loan market can now make unemployed people’s access loans. But they will still need to have suitable income-earning assets and future budgets to repay the loan.

To get the best option as an unemployed, find the best lender amidst many of them in the market. Explore because you need the best.

This article will reveal all you need to know about loans for the unemployed in Kenya. 

Thing you need to know about loans for the unemployed in Kenya

As an unemployed person in Kenya, you can borrow a maximum of Ksh.500 to Ksh.25,000 depending on the lender. Some lenders can offer higher or lesser. You do not have to borrow an amount you can not afford to pay back. The lender checks your personal repayment ability (as an unemployed, how would you be able to pay back). The lender also looks at your credit history. 

In addition, there is an interest attached to every loan amount which can be fixed or variable. It is advised you go for a fixed interest rate and is often between 6.5% to 13% depending on the lender. The fixed interest rates help make you know and decide on your monthly budget. 

Consequently,  in every loan there is a repayment mode. Be aware of your loan term so that it will correspond with your monthly budget.

3 Loans for the unemployed in Kenya 

The two main type of loan for unemployed in Kenya are:

1. Secured loans
2. Unsecured loans
3. Fixed-rate loans

secured loans for the unemployed

Secured loans for the unemployed are accessed by presenting a collateral as a loan commitment. The collateral reduces the risk of the loan and also reduces the interest rate. Unemployed in Kenya can go for this type of loan since there’s no means of income. Upon default, the asset presented as a collateral would be sold off by the lender to recover the loan amount. Additionally, your credit score does not really matter. 

Unsecured loans for the unemployed  

The best loan for the unemployed in Kenya is unsecured loans. This type of loan is made available at a relatively low interest rate. The flexibility related with the low interest rates made it more suitable. Invariably, You can borrow to a certain minimum and enjoy flexible repayment terms. No collateral is involved. Unsecured loans are easily accessed without much stress. 

The low interest rate, fixed repayment mode and the reasonable loan duration made it the best option for an unemployed. In this type of loan you need to be judiciously wise. Financial wisdom is required and would also help you find the maximum amount you need.

Fixed-rate loans for the unemployed 

This is a type of personal loan that favours the unemployed. The interest and the monthly repayment is the same throughout the lifetime of the loan. Here, you can have a wide view about the future cost and align it with your budget.

Secured loans for the unemployed 

How to apply for unemployed loans in Kenya

The application is simple and not tiring. The procedures for application include:

1. Fill the application form on the lender’s website. Or you can download the loan app on google play store 
2. Create an account on the app and supply all necessary details
3. Get the necessary documents ready
4. Apply and wait for loan approval 
5. Have your loan disbursed to your account 

2 Eligibility for unemployed loans in Kenya 

In order to be eligible for unemployed loans, you must:

1. Be 18years and above 
2. Have National ID to prove your identity 

3 Requirements for accessing loans by the unemployed in Kenya

The requirements needed are:

1. Proof of ID (national ID card with details aligning with your address
2. Information of your guarantor, if you asked to present a guarantor 
3. Details of loan security (e.g. a vehicle or other asset of value)

4 Features an unemployed person should look out for before making a loan application 

The characteristics of loans for unemployed in Kenya are;

1. The loan should have a relatively low interest rate
2. A repayment style that suit the borrower’s budget
3. Good repayment tenure that aligns with your monthly  budget 
4. A fixed-rate repayment mode.

What lenders look out for before approving a loan application made by an unemployed person 

Lenders will typically consider the following when an unemployed person makes a loan application:

1. Borrower’s ability to pay back
2. Worth of asset presented as a collateral 
3. Credit history 
4. End of the month budget and incoming future payments

What are the things to look out for when making a loan application while unemployed 

As an unemployed person in Kenya, there are various factors to look out for before accessing and considering a loan. They are:

1. The lender who does not impose any penalty in case of loan default 
2. The best type of an unsecured loan with a low-interest rate. Even though some lenders would charge you high because of lack of income.
3. Working fixed-rate repayment style 
4. Longer duration 
5. Fast in processing and easy to access.
6. The best secured loan you can easily pay off

Additional information on loans for the unemployed in Kenya 

There are a couple of things you still need to note when applying for loan as an unemployed. They are:

1. Some lenders are more likely to offer you smaller loan amount 
2. You might be charged a higher interest rate by some lenders. But some lenders might be willing to go down if you do your findings well.
3. Your credit history will be checked thoroughly.  Your previous loan application and rejections will also be checked. 

Conclusion

Fintech companies have made everything easy for us. You can stay in the comfort of your home to apply. The entire process is fast, and they waste no time in verification and valuation of collateral.

All you need is downloading and installing the app on your phone. You can also visit the lender’s website and fill the application form online.

We have up to 5 types of loans you can apply for in Kenya. You can use borrowed money for different purposes, which must fall in alignment with our needs. This is the best time for us to answer questions like, “What are the types of loans?, which is the best? And what purposes match the different types of loans?”.

Therefore, the need to start a business, solve a personal pressing need, and buy a home or a property, there are loans made for these varieties of needs. 

Furthermore, each type of loan solves a peculiar problem, and hence, none is the best when it is being matched with our different needs. This article will reveal the types of loans we have in Kenya and all you need to know.

What you need to know about the types of loans in Kenya 

For whatever you may be needing funds for, try to find out the type of loan suitable for your needs. However, if it is your first loan, ask around and do your findings. You can not need a business loan and go for a personal loan, which often attracts a relatively high interest rate.

5 types of loans you can apply for in Kenya

The different loans we have in Kenya are:

1. Personal loans 
2. Secured loans
3. Unsecured loans
4. Fixed-rate loans
5. Variable-rate loans

1. Personal loans

Personal loans are one of the 5 types of loans you can apply for in Kenya. This is a type of loan used in solving personal pressing needs. Personal loans can clear household bills, buy foodstuffs, pay off church dues, etc. A personal loan permits you to borrow cash from a lender for almost any personal purpose, mostly with a fixed duration, a fixed interest rate, and a regular monthly repayment. No collateral is required and banks, online lenders, and street lenders offer this type of loan. It is for those who need a relatively small amount of money.

2. Unsecured loans: 

They offer this type of personal loan without collateral and approve it based on your credit score. The pros of this kind of loan are that there is no collateral involved. The disadvantage is a slight increase in interest rates. If a borrower defaults on a personal loan, it leaves the lender with few options but to involve agents or debt collectors. These people help in recovering bad debts. However, Lenders do not have the right to take your assets, land, etc as collateral. You promise to repay and show proof of solid income and excellent credit history. 

3. Secured loans

Secured loans are obtained with collateral. Because it has recovered some part of the loan risk if the interest goes down. The advantage is a partially low interest rate and losing collateral in the case of loan default. Where your credit scores aren’t excellent enough to qualify for your unsecured loan, they request collateral. Secured loans show a lower risk rate to the lender or bank.

4. Fixed-rate loans

Fixed-rate loans are one of the 5 types of loans you can apply for in Kenya. In this type of loan, the interest and the monthly repayment remain the same till you pay off the entire amount. A fixed-rate loan is a type of personal loan where the interest rate stays unchanged for the entire duration or for a part of the loan period. Most citizens of Kenya go for fixed-rate loans for long-term loans. To an extent, they have a clear view of the future costs and monthly repayments.

5. Variable-rate loans: 

The interest rate of this type of loan can go down or up depending on the marketing structure. A variable-rate loan is a type of loan or personal loan where the interest alone changes according to changes in market structure It is in most cases called an “adjustable” or a “floating” rate. 

Note: Unsecured loans, Secured loans, Fixed-rate loans, and Variable-rate loans are seen as types of personal loans in Kenya.

Examples of loans you can apply for in Kenya

1. Business loans
2. Home loans
3. SME and agricultural loans
4. Home equity logbook loans
5. Car loans
6. Student and education loans
7. Salary advance

1. Business loans:

Business loans are offered to entrepreneurs and startups. They also offer it to business people who will go into expansion. It comes with an average low-interest rate. It is mainly offered by banks because it often requires huge capital. 

A business loan is a loan specifically for business purposes. Such loans come as asset-based loans, invoice financing, micro-loans, and business cash advances.

2. Home loan: 

They offer home loans to customers who want to purchase a home. The borrower in most cases goes to find a home and then meets the financial institution for the loan. The financial institution takes the title of the home till the borrower makes the final payment. It comprises an adjustable or fixed interest rate and repayment duration. They mortgage the home in question to the lender, mostly banks as a security till the final loan repayment.

3. SME and Agricultural loans: 

SME loans are offered to small and medium enterprise individuals who are looking to start up a business to boost the economy. They offer it on the basis that you pay little or no interest depending on the platform. Agricultural loans are for farmers and Agribusinesses to further turn their crude way of farming to a mechanized way in order to boost the agricultural sector. They in return make a repayment by the due date.

4. Home equity logbook loans: 

This type of loan requires the borrower to submit all documents of his home to the bank to raise a loan. The loan might be 50% monetary value of the home. Landlords benefit a lot from this type of loan especially when they want to embark on a new project. Projects like education loans, re-roofing, property acquisition, etc. Moreover, the amount of the loan will be based on the value of the property.

5. Car loans: 

This is a loan given to borrowers for them to own their dream car. There are terms and conditions you need to fulfill before you can get this type of loan. Often 80% to 90% of the value of the car is financed by the bank or the lender with an interest rate attached. It requires the borrower to pay back the loan and possess full ownership of the car. 

6. Students and education loans: 

There was a certain time when education was expensive, but the acquisition of loans has come to subsidize it. Lenders offer student loans to students or parents to finance their education. In return, the students graduate, get a job, and start paying off their loans. 

In addition, they use student loans to clear tuition fees, books, and supplies, living expenses, etc.

7. Salary advance: 

A salary advance is a type or form of a loan to salary earners who need cash and in return payoff at the end of the month. Monthly earners who need loans and can not wait till month end, go to acquire salary advance.

They give it to employees who receive wages or salary every month. It is simply a loan to an employee, and they pay it back immediately after the salary enters the account. 

How to apply for any of the types of loans

Applying for loans in Kenya is generally the same procedure as all lenders. Except for slight differences. The procedures are:

1. Download the loan app on the Play Store or visit the lender’s website and fill out the application form. Or visit the lender or the bank’s physical office and fill out your application form 
2. Create an account on the loan app and submit all your personal details. 
3. Wait for the app to read your details. Here you are to also submit your documents if requested.
4. Wait for loan approval and have your loan.

General eligibility for different types of loans

To be eligible for a particular type of loan you need to be:

1. Be 18 years and above
2. Have a national ID 
3. Possess an active phone number 

Conclusion

In the past few years, digital loans have changed the market for credit in Kenya. We have up to 5 types of loans you can apply for in Kenya. What should be of great concern to you is to identify the type of loan you need. 

However, It is pertinent to do proper findings and comparisons and also know the type of loans your loan falls under. When you want to take out a loan for an emergency or business expansion, know the type of loan you would go for. Know the requirements and eligibility attached to each type of loan because in Kenya each type of loan has its own peculiar features.