Search Results for: car loans

Best & Cheapest Car Loan Companies in Kenya

March 26, 2024 by joshua Leave a Comment

In Kenya, owning a car is not just a luxury but a necessity for many especially for facilitating mobility. The quest for affordable car financing has led many prospective car owners to search for the best and cheapest car loan companies in the country.

This article explains Kenya’s car financing platforms, highlighting institutions that stand out for their competitive interest rates, ensuring your journey to car ownership is both affordable.

The key lies in comparing these options, taking into account not just the interest rates but also other additional fees, loan repayment terms, and the speed of processing.

Best and Cheapest Car Loan Companies in Kenya

Car Loan Companies	Interest Rates
Safaricom Sacco	12%
Stima Sacco	12.75%
Waumini Sacco	14%
Equity Bank of Kenya	14.6%
Standard Chartered bank	16%
Diamond Trust bank	16%
NCBa Bank	18.1%
ABSA bank	18.5%
National Bank	18%

Tips for Securing the Cheapest Car Loans

The major tips for securing the cheapest car loans in Kenya are:

Shop around and conduct proper research
Check your credit score because a higher credit score means a low interest rate and vice versa
Negotiate terms
Go for a shorter loan tenure
Consider a bank or its affiliated dealership
Make a large down payment
Read everything about the loan and fine for defaulters
Beware of any additional fees or charges that can affect the total cost of the loan
Consider refinancing

Conclusion

Reading through different car loans in Kenya reveals a competitive market ripe with options for prospective car owners. Whether you prioritize lower interest rates, flexible repayment plans, or quick loan approval, there’s a financial institution ready to meet your needs.

The best and first approach is to conduct thorough research, check different interest rates, compare the different offers, and consider your financial situation and repayment capacity before making a decision. Check whether saccos, banks, or microfinance institutions are the best for your needs.

By doing so, you will find a car loan that not only meets your budget and needs but also turns your dream of car ownership into a reality, marking a great step in your financial journey.

Top Zero Deposit Car Finance Providers in Kenya

March 26, 2024 by joshua Leave a Comment

The concept of zero-deposit car finance is revolutionizing the path to car ownership in Kenya, making it more accessible to people than ever. This financing model helps people looking to drive off in their dream car without the upfront financial burden of a deposit.

Our article explains the top providers in Kenya who excel in providing zero-deposit car finance options, combining competitive interest rates, flexible repayment plans, and easy application processes.

Whether you’re a first-time car buyer or looking to upgrade your car, these providers in Kenya are paving the way for a smoother journey to car ownership, all without the initial deposit hurdle.

What is Zero Deposit Car Finance?

Zero deposit car finance is a credit option that allows borrowers to buy a car without making an upfront down payment. This means buyers can purchase a car immediately and start making monthly payments on the loan amount, without making the initial financial deposit.

Benefits of Zero Deposit Car Finance

The benefits of Zero-deposit car finance include:

It gives buyers immediate ownership of a car without waiting to save for a deposit to pay upfront before owing the car.
Promotes cash flow management which helps preserve your savings to use for another need
Makes car ownership accessible for a lot of people
It is budget-friendly. Zero deposit car finance helps spread the cost of a car over monthly payments.
It is flexible and gives one opportunity to get a better car.

Best/ Top Zero Deposit Car Finance Providers in Kenya

Name of Loan Provider	Interest rate	Loan amount	Repayment duration
Mwananchi Credit Ltd	10% to 14% per annum	Up to 25 million	Spans up to 48 months
NCBA Bank	11.9% to 14% per annum	Up to 25 million	Duration Spans up to 72 months
Rafiki Microfinance Bank	14% to 16% per annum	Up to ksh. 5 million	Spans up to 60 months
Toyota Kenya	10.5% to 15%	Up to ksh. 20 million	Up to 60 months repayment period.

Eligibility/Requirements For Zero Deposit Car Finance

To qualify for a zero deposit car finance in Kenya, there are requirements to meet:

You must be 18 years to 60 years
Have a valid driver’s license
A good credit score
Proof of steady source of income.
Applicant’s ID and KRA PIN Certificate
Letter of Introduction from your employer
Your latest 3 months’ certified pay slips
Recent 6 months’ bank statements (if you’re not banking with the loan provider)
Copies of employment contract, or letter of appointment to office.

How To Apply For a Zero Deposit Car Finance in Kenya

First, go for the right dealer who has a relationship with a bank or who is reputable with a competitive interest rate
Know what you are eligible for or check out your zero deposit car’s finance eligibility.
Get your good credit score records ready.
Go for the right amount you can afford to pay off
Fill and complete the zero deposit car finance loan application form. You need to write all necessary personal and financial details down.
Provide other required documents and submit them.
Wait to have the loan application approved.
Meet your existing bank and let them know. You can write a letter to your bank telling to initiate an installment payment monthly to the loan provider

Frequently Asked Questions

Does KCB offer car loans?

Yes, KCB offers car loans in Kenya. They cover 90% of the value of the car with a five-year loan term and 80% to 100% for used cars with a longer loan period.

Can I pay for a car in installments in Kenya?

You can pay for a car in installments in Kenya depending on the agreement with the lender. Each lender has their unique features, so find out before moving ahead with them.

Most of the time, you have to deposit 10% to 40% of the vehicle before you can begin the installment payments.

Which bank gives 100% car loans in Kenya?

We have many banks that offer 100% car loans in Kenya and they are:

Co-operative Bank
National Bank of Kenya
Family Bank
NCBA Bank
Rafiki Microfinance Bank and so many others.

26 Car Loan Companies in Kenya – What You Should Know

January 23, 2024 by hakeem

Owning a car in Kenya is turning to be a basic necessity. It helps take people to work on time and also have a standby ride to attend to emergencies. That you cannot afford a car doesn’t mean you can’t own it.

Instead of worrying about how much money you do not have to purchase a car, think of sources that will give you the best deal as there are different car loan companies in Kenya that will give you the best deal.

As we evaluate loan companies for a car loan, understand the cost, benefits and implications. Definitely you will enjoy it.

Let us discuss car loan companies in Kenya

What You Need to Know About Car Loan Companies in Kenya

Car loan companies are agencies or financial institutions that offer funds that are used in purchasing a new or used car. Oftentimes, these companies could be car dealers, banks, and non-bank institutions. In some cases, you may be able to obtain a car with zero deposit.

They have terms and conditions guiding them which must be kept before you can access the loans. They have fees and procedures to repay and recuperate bad debts.

In addition, some of these car loans companies partner with foreign and local investors to serve their customers better.

Types of Car Loan Companies in Kenya

The different kinds of car loan companies in Kenya are:

Banks
Car dealers
Non-bank institutions
Other partnerships

List of Banks for Car Loan Companies in Kenya

There are different banks that offer car loans in kenya and they include:

KCB bank

They cover 90% of the value of the car with a five years loan term and 80% for used cars with a 4 year loan period. They also have 100% financing for a period of 54 months. It all depends on what you need.

Equity bank

They have flexible repayment car loan terms and cover 70% of the value of the car. Standard Chartered bank of Kenya: They finance 90% value of the car for new cars and 80% for old cars.

They also finance your car tracker or anti-theft and insurance and give a maximum of Ksh. 10million for new cars and Ksh. 5million for used cars. Moreso, gross salary earners of ksh. 75000 can also go for a car loan hence they have a salary account with the bank.

I & M bank Kenya

I&M takes up to 80% of the value of the car for new cars and 70% for used cars. They are into partnership with Japanese exporters and world Nari to serve their customers better.

Stanbic bank Kenya

Stanbic Bank renders car loans with a maximum of 48months. The bank owns the car till you make the last repayment.

NIC bank

The minimum car loan amount with NIC bank is Ksh. 300,000 with a repayment period if 72months. Additionally, they offer car loans to their salary customers with up to 90% finance on the value of the car.

Bank of Africa Kenya

They offer competitive interest work 50% and 80% finance of the value of the car. They also have a repayment duration of 12 to 48 months. Bank of Africa keeps the car as a security for the loan.

Barclays Bank of Kenya

They operate an asset finance scheme that covers Islamic bank arm names La Riba car finance.

NCBA Bank

NCBA Bank provides car loans to individuals, organizations and companies. They can offer a car loan ranging from ksh, 10,000 to ksh. 10 million with competitive interest rate.

Their loan repayment plan is flexible.Besides these great features, they have branches in different places in Kenya making it more accessible by customers.

Standard Chartered Bank Car Loan

The Standard Chartered Bank is one of the car financing companies in Kenya with global presence. Their quick car loan processing time has attracted more customers to them over the years.

They offer car loans to individuals, corporations and SMEs with competitive interest rates and a flexible loan repayment of up to 60 months.

Faulu Microfinance Bank

Faulu is one of the leading DTM in Kenya that offers car loans in Kenya. Individuals and SMEs can get up to ksh. 50,000 to ksh. 5 million with 48 months repayment period.

List of Car Dealership Loan Companies in Kenya

1. Toyota Kenya

They provide care loans at a rate of 18% with a duration of 5 years. They are also into partnership with Tsusho Capitals to serve their customers effectively.

2. Cheki Kenya

Cheki Kenya partnered with asset financiers to help customers get their dream cars.

Lists of Non-Bank Financial Car Loan Companies in Kenya

The list of non-bank financial institutions for car loans in Kenya are:

AMREF SACCO

They partner with import car dealers for both new and used cars by financing 80% of the car value and an interest of 1.5% on reducing the balance method. They have a loan term of 36months.

Mhasibu Sacco

This loan company finance 90% of the value of the car with an interest of 1.125% and a duration period of 48months

Springboard Capital:

This loan company also offers car loans in Kenya.

List of Other Partnerships Car Loan Companies in Kenya

Sidian partnership with Uber: They advance car loans to drivers using their loan app and driving for Uber. The drivers determine the finance rate with an interest rate of 10.5%

You can also check out some private money lenders in Nairobi, Kenya

List of Other Car Loans Companies in Kenya that You Need to Take Note of

There are numerous number of lenders and banks that offer car and logbook loans in Kenya and they include:

Ngao Credit Limited – Kenya Nairobi, Mombasa, Nakuru, Eldoret Kitengela, Kenya.
MOGO – Prestige Plaza Branch Ngong Road, Kenya.
Emergency Loans Kenya Ltd- Nairobi, Kenya.
Mwananchi Credit Limited – EcoBank Towers 10th Floor, Kenya.
ASL Credit Ltd – 84 Muthithi Road, Nairobi, Kenya
Kifedha Limited- Murang’a Road, Nairobi, Kenya.
Toyotsu Auto Mart – Nairobi, Kenya.
Platinum Credit Ltd, Satellite Office Dagoretti Branch- Wanyee Rd, Nairobi, Kenya.
Jijenge Credit Limited – 6th Floor Right Wing Town House, Kenya.
ECLOF Kenya- Nairobi, Kenya.

General Car Loans Company’s Requirements

The general requirements needed by different car loans in Kenya include:

Application form
Six months bank statement
Copies of National ID and pin
For used cars, copies of logbook and valuation reports would be needed
Passport photograph
Bank with the financial institution or have an account with them
Copy of your payslip
Sales Agreement
Proof of steady source of income
For salaried workers, have your employer sign fees documents

General Terms And Conditions Governing Car Loan Companies in Kenya

The general terms and conditions guiding loan companies in Kenya include:

The lender or bank must approve and validate the insurance company giving the vehicle policy
Often times it is required the car has an installed tracking device
Some banks and lenders prefer the car not to be more than 8 years old
The car must have an insurance policy
The bank owns the car till the borrower makes the last repayment.

Factors to Consider Before Choosing a Car Loan Company in Kenya

In considering which car loan company to choose in Kenya, there are factors to look out for, they are:

Interest rates
repayment duration
Financing amount
Insurances covers or clauses
Other attached fees and charges
Credit score for the car loan if needed

Things to do When You Have Chosen a Car Loan Company

After choosing a particular car loan company, there are various things you need to be careful about. You need to be also aware of all these things. They are:

Choose the cheap car loan amount you can pay
Go for the car with the best terms and conditions
Settle for the best. Understand every bit of the contract.
Be smart enough and use your findings well.

Conclusion

There are numerous car loan companies in Kenya with good terms and conditions guiding. Do your findings well and learn the requirements and eligibility.

When you are good to go, choose the car you can pay for. Know your repayment schedule and make payment as required to fully take ownership of your dream car.

Best Logbook Loans in Kenya

October 14, 2023 by olamide Leave a Comment

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

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

Filled application form
Bank statements for a period of 6 months
Two copies of your passport photograph
Original three-month payslips
Copy of your national ID or passport
Your KRA PIN
Proof of your place of residence
Copies of logbooks of your vehicle or for other motor vehicles (Used vehicles).
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

Pro-forma invoice from the dealer/ seller.
Present the recent AA/regent automobile valuers and assessors valuation (for used vehicles).
Proof of your source of income.
Introduction/Confirmation/Appointment letter from your present employer
Carefully signed authorization forms.
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

September 18, 2023 by olamide Leave a Comment

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

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:

Cooperative Bank Tuk tuk Loans.
Mwananchi Credit Tuk tuk Loans
Premier Credit Tuk tuk Loans
Faulu Tuk tuk Loans

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:

Mogo Tuk-tuk loan
KCB Bank Tuk-tuk loan
Watu Africa Tuk-tuk loan
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.

Zero Deposit Car Finance in Kenya

September 8, 2023 by olamide Leave a Comment

Zero-deposit car finance in Kenya can be beneficial for those who may not have the immediate cash needed to make a down payment or prefer to use their savings for other needs.

It is offered by many lenders and companies in Kenya but it is recommended to research and compare available deals to find the most suitable offers that fits your financial situation and requirements.

What is Zero Deposit Car Finance?

Zero deposit car finance is a type of financing option that permits people to purchase a car without having to make an upfront payment/deposit.

In this type of arrangement, the lender provides the full amount of the car and the borrower starts to repay the loan without making an initial payment.

Can You Get a Car on Zero Finance?

Yes, anybody with a good credit score and good income in Kenya can get a car with zero finance options. They also must meet the requirements and conditions for the bank loan.

However, it is important to note that going for zero-deposit car finance may result in higher monthly repayments or interest rates compared to other loans with a down payment.

The reason for this is that the absence of a deposit may increase the risk for lenders, leading to slightly higher costs for borrowers.

How to Buy a Car on Loan in Kenya

To get a car on loan in Kenya, follow the following steps:

First, go for the right dealer who has a relationship with a bank.
Meet your existing bank and let them know.
Know what you are eligible for or check out your car’s eligibility.
Get your good credit score records ready.
Go for the right amount.
Fill out and complete the lender’s car loan application. You need to show all necessary personal and financial details.
Provide other required documents and submit them.
Wait to have the loan application approved

Check out the different car loan companies in Kenya.

Cheapest Car Loans in Kenya

1. AMREF SACCO

They partner with import car dealers for both new and used cars by financing 80% of the car value and an interest of 1.5% on reducing the balance method. They have a loan term of 36 months.

and cheapest car loans in Kenya.

2. Mhasibu Sacco

This loan company financed 90% of the value of the car with an interest of 1.125% and a duration of 48 months.

3. Sidian partnership with Uber

They advance car loans to drivers using their loan app and driving for Uber. The drivers determine the finance rate with an interest rate of 10.5%

4. Toyota Kenya

They provide car loans at a rate of 18% with a duration of 5 years. They also partner with Tsusho Capitals to serve their customers effectively.

5. Cheki Kenya

Cheki Kenya partnered with asset financiers to help customers get their dream cars.

6. KCB Bank

They cover 90% of the value of the car with a five-year loan term and 80% for used cars with a 4 year loan period. They also have 100% financing for a period of 54 months. It all depends on what you need.

7. Equity bank

They have flexible repayment car loan terms and cover 70% of the value of the car. Standard Chartered Bank of Kenya: They finance 90% of the value of the car for new cars and 80% for old cars.

Equity bank also finances your car tracker or anti-theft and insurance and gives a maximum of Ksh. 10 million for new cars and Ksh. 5 million for used cars. Moreso, gross salary earners of ksh. 75000 might also need a car loan hence they have a salary account with the bank.

8. I & M Bank Kenya

I&M takes up to 80% of the value of the car for new cars and 70% for used cars. They are in partnership with Japanese exporters and World Nari to serve their customers better.

9. Stanbic bank Kenya

Stanbic Bank renders car loans with a maximum of 48 months. The bank owns the car till you make the last repayment.

10. NIC bank

The minimum car loan amount with NIC bank is Ksh. 300,000 with a repayment period of 72 months. Additionally, they offer car loans to their salary customers with up to 90% finance on the value of the car.

Conclusion

Anybody can benefit from zero deposit car finance in Kenya as long as they have a good credit limit, a good income, and meet all the requirements.

Please, also note that the terms and conditions, interest rates, and eligibility criteria for zero-deposit car finance may vary depending on the lender.

Therefore, it is recommended to contact the specific lender or financial institution directly for detailed information and to address or clarify any specific concerns or questions you may have.

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

September 4, 2023 by hakeem

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!

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

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

How to apply for M-Shwari loans on the app

You can access the loan through M-Pesa menu
Select loans and savings
Choose M-Shwari
Select loans
Request for loans
Input the amount
Enter your M-Pesa pin
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:

Open your M-Shwari menu on your phone.
Look for the “LOAN” option and select it.
Within the “LOAN” menu, choose “Pay Loan.”
Enter the exact amount you want to repay towards your loan.
Key in your M-Shwari PIN.
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).
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

August 22, 2023 by hakeem

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.

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:

KCB bank
Missoni Microfinance bank
NIC Bank
Fin credit
Kenya Central bank
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;

Valid Kenya ID
Proof of income
Schedule of monthly household income and expenditure
Proof of address (A bill in your name which quotes your address)
Offer to purchase
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:

Visit the lender’s website online and fill out your official application
Send all necessary documents. Also, do your electronic signing if requested.
Cross check all details
Wait for your loan approval
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;

Security documents for logbook loans
National ID card for some loan lenders
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

June 6, 2023 by hakeem

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:

Commercial Bank of Africa: they offer SME loans without collateral to young entrepreneurs and other businesses. With flexible repayment terms and less interest rate.
KCB bank Kenya: KCB bank Kenya offers personal and SME loans to businesses. A repayment period of 12months with 9% interest rate
Diamond Trust bank: you can access personal, business and salary advance of up to Ksh. 30,000 to Ksh. 250,000.
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.
NIC Bank: they render quick loans to customers daily. Open an account with them and have a strong means of repayment.
National Bank of Kenya
Standard Chartered Kenya

How to apply for bank loans without collateral.

Visit the bank’s website or office and fill the application form
Apply for the loan and supply all personal details
Submit all necessary documents
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:

Be 18years and above with proof of strong income, cash flow and business record.
Posses a national ID
Have a valid phone number
Strong credit history
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:

National ID card
6 month’s statement of account
Payslip
Business record, licence and certificates for business loans
Passport photograph
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:

Personal loans
Unsecured loans

Other loans you can get from the bank without collateral

Business loans
SME loans
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

May 30, 2023 by hakeem

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:

kingdom securities limited: a stockbroker with a 60% controlling stake in the bank.
The bank owns the fund management subsidiary Co-opTrust Investment Services Limited.
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?

18years and above
Original National Identity Card
Original KRA PIN Certificate
Salary pay slips for the last 3 months.
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:

Personal loans
Bizwise SME loans
Co-op bank Flexi loan (salary Advance)
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:

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

Features:

Minimum loan amount of Ksh 50,000
Maximum loan amount of Ksh 4,000,000
Maximum term of 72 months
The purpose of the insurance policy includes education, medical, furniture, consumer durables, motor vehicles, plot purchase, holidays and shares.
Credit scoring serving as a determinant for the appraised value of applications.
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:

Need the applicant to have operated a business current account in Co-op bank for at least 6 months.
Provide the bank with bank statements
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:

The benefit of the loan is that it was tailored to fit the individual cash flow needs.
Funds are freed up, giving you the liquidity you desire.
Quick approval and simple application process, and no security required.
The minimum amount to be financed is Ksh 15,000 and there is no maximum.
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

Apply for a loan
Send money to other mobile money services, for example, M-PESA.
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

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.