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How To Qualify For KCB Loans- All you Should Know

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We would be looking into how to qualify for KCB loans in this article. The KCB loan application process is simple and anybody who meets the requirements has already qualified for the loan.

Customers can borrow from KCB for a variety of amounts ranging from ksh.1,000 to Ksh. 1,000,000. Their loans are accessible and affordable. Read along to understand more about this topic.

About KCB Loans Group

KCB Group is a licensed banking institute and a registered non-operating holding company. It started operations in January 1, 2016. The holding company oversees KCB Kenya. KCB Kenya renders financial services to the people.

They have different types of loans that suits various needs. 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 once you meet all the requirements. It is also very easy to get the loan. Go ahead and apply once you meet the requirements.

There are also different types of loans available. Every loan type serves a purpose for a particular goal. Take advantage of KCB loans and all the features that come with them.

How to transfer money from M-Pesa to KCB account

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KCB is known to be the preferred provider of financial solutions in Africa with a global reach. KCB strives to drive efficiency while growing market share.

In this post, we look at how to transfer money from M-Pesa to a KCB account. You can either do this using the M-PESA app or through an M-Benki account.

If you prefer to use an M-Benki account, you will need to open an M-Benki account first.

How To Transfer Money From M-PESA To a KCB Account

How to transfer from M-PESA to KCB account
  1. Go to your M-PESA menu,
  2. Choose Lipa na M-PESA,
  3. Enter the PayBill number 522522,
  4. Enter the KCB account number you are transferring money to and the amount
  5. To send money, enter your M-Pesa PIN and confirm.

Sending Money From M-Pesa To KCB Charges

For all deposits made via Mpesa to KCB, there is no charge from KCB. Sending money through Safaricom M-Pesa, however, will incur a fee. Moreover, the charges below are applicable:

  1. Dialing on to KCB Mobi Bank via USSD is charged by your mobile phone subscriber. Safaricom subscribers pay Kshs. 2.
  2. Balance enquiry is charged at Kshs. 33
  3. Mini statement is charged at Kshs. 33
  4. Forex rates are free.
  5. Airtime purchase for own phone and other phones is free
  6. M-Pesa transfer from KCB account to M-PESA is Kshs. 55
  7. Mobi Loan and Kopa Bill Loan are charged an interest of 6%
  8. Salary Advance is charged an interest rate of 8% per month.

Opening a KCB M-Benki Account 

You can open an M-Benki account by taking the following steps ;

  1. Navigate to the M-Pesa menu on your phone toolkit, if you are not a customer of KCB bank 
  2. Choose payment services, then pay the bill. Put KCB paybill number 522522 in when prompted with a business number. 
  3. Select the account, then enter “ID” accompanied by your ID number in the format ID23456789. 
  4. Indicate the amount of money that you intend to deposit.
  5.  Upon completion, enter your M-Pesa PIN to authorize the transaction 
  6. A short message with your user ID and your personal identification number will be sent to you with a second message containing your M-Benki account number. 

How To Open a KCB M-BENKI Account Through M-Pesa

  1. Go to the M-PESA menu
  2. Choose Lipa na M-PESA
  3. Select Paybill and enter Paybill number 522522
  4. Under Account, type ID(No Space) and your National ID Number e.g ID123456789
  5. Enter the amount to deposit, and your M-Pesa PIN.
  6. You will receive two SMSs, one with your KCB M-BENKI Account number and the other with your temporary PIN.

Note: You can deposit money to KCB through Mpesa without paying transaction charges. You will need to open a KCB M-Benki account to do this. 

Benefits Of M-Benki

M-Benki offers users several benefits. You can do the following with M-Benki:

  1. It is possible to transfer money to other KCB banks 
  2. There are banks other than KCB where you can move your funds 
  3. Money can be deposited into and withdrawn from M-Pesa
  4.  No matter what network you use, you can easily buy credit.

Note: Existing clients can register for M-Benki at their nearest KCB bank. 

How To Withdraw Cash With a KCB M-Benki Account 

If your ATM card has expired or you have forgotten it somewhere you don’t need to worry. You can withdraw cash at the nearest KCB ATM by using ‘555555’ as the agent number. 

How To withdraw Money From KCB To M-Pesa account 

Here is a comprehensive guideline on how to transfer your funds from KCB to M-Pesa. They are:

  1. To start a transaction, dial *522# in your phone and enter your M-Benki secret PIN
  2.  Select MyKash from the pop-up menu, then M-Pesa.
  3. M-Pesa grants multiple choices to send money, either to your phone or any other 
  4. As you proceed, enter any amount you wish to transfer, provided it does not exceed fifty Kenyan shillings or KSh. seventy thousand. 
  5. When you enter an amount, the system displays the cost of the transaction along with the amount you entered 
  6. Accept and complete the transaction if all is well
  7.  The amount deposited to your account will be notified to you via SMS. 

How To Purchase Airtime Via KCB App

  1. Open the KCB App icon
  2. Select Transact
  3. Choose Airtime
  4. You can purchase your phone or pick a recipient from the contact list

KCB M-Pesa Contacts Kenya Commercial 

In case you want to reach M-Benki client mind centers, apply the following contact information. 

  1. Short Message: 22522 
  2. Mobile: 0732 187000 or 0711 087000 
  3. Facebook: KCB Bank Group and 
  4. Twitter: KCBgroup 

Conclusion 

The mobile money transfer industry is a fast-growing service industry in Kenya. Given its mobility and adaptability, several banks, like KCB, have adopted the concept. It is now possible to transfer funds from M-Pesa to KCB

See also: Recovering loans and Credit note

26 Car Loan Companies in Kenya – What You Should Know

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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

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:

  1. Banks
  2. Car dealers
  3. Non-bank institutions 
  4. 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:

  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 36months.

  1. 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

  1.  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:

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

General Car Loans Company’s Requirements 

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

  1. Application form
  2. Six months bank statement 
  3. Copies of National ID and pin
  4. For used cars, copies of logbook and valuation reports would be needed
  5. Passport photograph
  6. Bank with the financial institution or have an account with them
  7. Copy of your payslip
  8. Sales Agreement 
  9. Proof of steady source of income
  10. 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:

  1. The lender or bank must approve and validate the insurance company giving the vehicle policy
  2. Often times it is required the car has an installed tracking device 
  3. Some banks and lenders prefer the car not to be more than 8 years old
  4. The car must have an insurance policy 
  5. 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:

  1. Interest rates 
  2. repayment duration
  3. Financing amount
  4. Insurances covers or clauses
  5. Other attached fees and charges
  6. 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:

  1. Choose the cheap car loan amount you can pay
  2.  Go for the car with the best terms and conditions 
  3. Settle for the best. Understand every bit of the contract.
  4. 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.

Cheapest Bank Loans in Kenya – All You Need To Know

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

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

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

Cheapest Bank loans in Kenya

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

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

1. First Community Bank (FCB)

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

2. Ecobank Kenya

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

3. HF Bank

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

4. Access Bank Kenya

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

Other Options to Consider

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

  • Consolidated Bank
  • Habib Bank
  • DTB Bank

International Players:

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

Traditional Powerhouses:

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

Common Types of Cheap Loans Offered by Banks

  1. Secured loans
  2. Salary advance

Factors That Cause a Change in Interest Rate

The factors that cause changes in interest rates include:

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

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

How Commercial Banks Choose Their Interest Rates

Commercial banks determine interest rates using several factors such as:

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

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

Conclusion

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

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

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

Zero Deposit Car Finance in Kenya

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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:

  1. First, go for the right dealer who has a relationship with a bank.
  2. Meet your existing bank and let them know.
  3. Know what you are eligible for or check out your car’s eligibility.
  4. Get your good credit score records ready.
  5. Go for the right amount.
  6. Fill out and complete the lender’s car loan application. You need to show all necessary personal and financial details.
  7. Provide other required documents and submit them.
  8. 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.

Commercial Banks in Kenya that give loans without collateral

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

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

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

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

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

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

Banks in Kenya that give loans without collateral 

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

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

How to apply for bank loans without collateral. 

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

What determines your eligibility for bank loans without collateral 

Your eligibility for bank loans without collateral are:

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

Requirements for banks’ loans without collateral 

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

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

Types of loans you can get from a bank without collateral 

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

  1. Personal loans 
  2. Unsecured loans 

Other loans you can get from the bank without collateral 

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

Conclusion 

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

How To Apply For Quick Loans in Cooperative Bank Kenya

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

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

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

About Co-operative bank loan

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

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

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

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

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

How to apply for co-operative bank Kenya loan 

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

Loans offered by the Cooperative Bank of Kenya

Loans offered by co-operative bank of Kenya are:

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

Personal loans

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

Enhanced Benefits:

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

Features:

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

Business/Bizwise SME loan

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

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

Requirements:

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

Co-op Bank Flexi Loan (Salary Advance)

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

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

Insurance Finance Loan

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

Benefits:

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

How to apply for Co-operative insurance Finance loan

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

The Co-op mobile banking App

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

Features of the app

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

Co-operative bank loan Calculator 

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

How to repay your co-operative bank loan

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

Or

By visiting the bank and asking for a different option. 

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

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

Conclusion

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

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

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

Debt Consolidation Loans in Kenya Explained

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Imagine being able to take a loan to cover your debts and liabilities. As strange as it sounds, it’s real as it gets. With favourable terms of the loan which include a lower interest rate, lower monthly payment, or both.

Individuals can use debt consolidation loans as a tool to deal with student loans and other forms of liabilities.

What is a consolidation loan? 

We can see the term debt consolidation as the act of taking out a new loan to pay off other liabilities and consumer debts. These loans are generally unsecured ones. Here they combine multiple debts into a single, larger piece of debt, usually with more favourable payoff terms. These favourable payoff terms include a lower interest rate, lower monthly payment, or both. Consumers can use debt consolidation as a tool to deal with student loan debt, credit card debt, and other liabilities. 

Key things to know about consolidation loans?

  • Debt consolidation is means taking a loan to pay off other debt and liabilities. 
  • Debt consolidation loans do not entirely erase the original debt. They only transfer a benefactor’s loan to a different lender or type of loan.
  • There are two major types of debt consolidation loans. They include secured and unsecured.
  • Benefactors can apply for debt consolidation loans, lower-interest credit cards, and special programs for student loans.

How does debt consolidation loans work?

As stated above, debt consolidation is the act of using a different form of financing to settle other debts and liabilities. When a consumer is saddled with different debts, they can apply for a loan to merge those debts. Those debts are standardized into a single liability and paid off. They then make payments to the new debt until the debtor settles it in full.

Most consumers can apply through their bank credit union, or credit card company as the first step of the application process. A consolidation loan is a great way to start, especially if you have a great relationship and payment history with your institution.

An important point to note is that debt consolidation loans do not entirely erase the original debt. Instead, they simply transfer the benefactor’s loan to a different lender. For actual debt relief/ or for those that don’t qualify for loans, it’s advisable to look into debt settlement. Debt settlement is available to reduce consumer’s obligations rather than the number of creditors.

2 Types of Consolidation loan

There are two major types of debt consolidation loans. They are secured loan and unsecured loans.              

Secured loans are usually backed by the borrower’s assets, such as a house or a car. The asset here works as collateral for the loan.

Unsecured loans are not backed by any asset. This type of consolidation loan is usually very difficult to get. They also have higher interest rates and lower qualifying amounts compared to other forms of loans. 

With either of the loans, interest rates are typically lower than the rates charged on credit cards and other forms of loans. Also, in most cases, the rates do not fluctuate, so they do not vary over the repayment period.

Requirements for getting a debt consolidation loan?

Before qualifying for a consolidation loan, applicants must;

  • Possess a letter of employment,
  • Have two months’ worth of statements for each credit card or loan you wish to pay off.
  • Possess letters from creditors or repayment agencies.  
  • Provide a copy of the latest bank statement, reflecting three salary deposits 
  • Have the income and creditworthiness needed to qualify, especially if you’re going to a brand new lender.

Although the documentation you will need often depends on your credit history, the aforementioned documents are quite essential.

Advantages of consolidation loans

The following are the major importance of consolidation loans;

  • Debt consolidation is a great tool for people who have multiple debts with high-interest rates or monthly payments.
  • Debt consolidation loans can help your credit score. Settling the portion of the principal loan sooner can keep interest payments low. This means less money out of your pocket. This can help boost your credit score, making you more attractive to future creditors. 
  • Taking a debt consolidation loan can give you a tax break chance. The internal Revenue Service permits deduction of interest on any unsecured debt consolidation loans.
  • Going through the debt consolidation process can reduce calls or letters from the collection process. As long as the new loan is kept up to date. 

Disadvantages of consolidation loans

Debt consolidation loans have their downsides too. These disadvantages include;

  • Debt consolidation loans have longer payment schedules. This means that applicants might pay more in the long run.
  • By transferring existing loans into a brand new one, there may initially be a negative impact on the consumer’s credit score. This is because credit scores favor longer-standing debts with longer, more-consistent payment histories.
  • Ending the old credit accounts and opening a single new one may reduce the total amount of credit available, raising the debt-to-credit utilization ratio.
  • Consolidation loans can also cause potential loss of special provisions such as interest rate discounts and other rebates.

Conclusion 

Debt consolidation rolls and tackles multiple liabilities and debts, typically high-interest debt such as credit card bills, into a single payment. Debt consolidation might be a great idea for you, especially if you can get a lower interest rate. That will help you reduce your total liability and reorganize it so you can pay it off faster.

NHIF Card Replacement – Cost And How To Process Replacement

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All should access good health as a basic human right as contained in the 2010 Kenya constitution. But not every citizen of Kenya can afford it because of its high cost, this brought about the National Hospital Insurance Fund (NHIF).

It became a vehicle the government of Kenya uses to roll out universal healthcare in the country. NHIF Card replacement is one of the trending topics in Kenya.

We will take you through the meaning, processes, and all you need to know.

What is NHIF?

NHIF stands for National Hospital Insurance Fund. It is the primary render of health insurance in Kenya. Their primary aim and vision is to provide all Kenyans access to quality and affordable health care services.

What is NHIF Card?

NHIF is a printed document given to a member who has fully registered for NHIF health care services. It is evidence that you are a member and have fully subscribed to their insurance services.

The card covers hospital bed charges, nursing care, diagnostics and all drugs prescriptions and all medications. 

Eligibility 

Any person resident in Kenya is eligible. For those in the formal sector, it is compulsory to be a member, but for those in the informal sector, it is Voluntary. 

Requirements for registering under the NHIF  

The requirements for registering under the National Hospital Insurance Fund are listed below:

  1. Valid ID Card
  2. Passport photo
  3. Authentic Marriage certificate if married. 

How to register for NHIF

Registration fee is ksh.1500. The procedure for applying for NHIF registration online is as follows;

  1. Visit: http://www.nhif.or.ke
  2. Select Employed or self employed
  3. Employee application form will load
  4. Fill the form details
  5. Attach copy of ID, passport photo and marriage certificate (for married people only)
  6. Click Save
  7. They will notify you of your status upon nhif payment
  8. You will also receive an SMS to your number confirming your registration. 

NHIF card processes/collection

For your NHIF card replacement collection, after completing your application and the application being approved, visit any NHIF office close to you and get your card printed for you.

How long does it take for NHIF card to mature?  

The normal NHIF card takes up to 14days. After 14days, visit the nearest NHIF branch office and pick your card or have your card printed out for you.

How can I get an NHIF card replacement?

When you lose your NHIF card, you can replace it by making payment Kes. 10000 to any of these banks:

  1. Equity bank
  2. Co-operative
  3. National Bank and
  4. KCB Bank

You tell the bank teller that the payment you are making is for NHIF card replacement, then take the bank slip to any NHIF office and have your card replaced or printed.

How can I activate my dormant NHIF card?

How to reactivate your dormant NHIF Card:

  1. On your M-PESA menu, select Lipa M-Pesa.
  2. Select Paybill, enter NHIF M-Pesa paybill number: 200222.
  3. Under account number, key in your national ID number.
  4. Enter the amount
  5. You should receive a confirmation message of the transaction.

How long does your NHIF card take to be active?

To reactivate your NHIF card, you have to pay kes.1500, you will then wait for two (2) months  (60days) to start with their regular services.

How can I know that my NHIF card is active?

As a member of NHIF, you can check if your card is active by:

  1. Composing a new SMS message
  2. Type the letters “ID”, give space, then followed by your ID number (or passport number) e.g. ID 34234567.
  3. Tap send and send it to 21101.

How does NHIF card works?

All illnesses and diseases in Kenya are catered for by the National Insurance Fund (NHIF). After Registration by a member, a card is issued out. Once a member is discharged, they pay all bills accumulated in the hospital.

Benefits of NHIF

National Health insurance Fund (NHIF) as a health care service provider in Kenya plays a role in attaining better and quality packaged health care services. NHIF benefits ranges from:

  1. Clinical care services
  2. Maternity cover
  3. Life cover by paying death benefit upon verification of complete document and receipts of the deceased.
  4. Expense cover by paying for funeral expenses and general emergency loans.

How to contact NHIF

To learn further, reach NHIF out on their toll-free number  0800720601, (020) 2723255/56, (020) 2714793/94 and (020) 2722527 or customercare@nhif.or.ke.

Fax detail is (020) 2714806 and the email address of National Hospital Insurance Fund for enquiries is customercare@nhif.or.ke.

For any kind of complaints, email to complaints@nhif.or.ke.

Conclusion 

Only the financially able can access good health care in Kenya, but with the inception of NHIF, most of the citizens can afford a robust of good health care. For those citizens in the informal sector who are not obliged or mandated to become a member, register today and get the full packages that come with proper health care and attention. 

Home Loan In Kenya- How To Qualify For A Home Loan

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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.