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Loans and Advances Explained – Meaning and All You Should Know

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The need to make a sound financial decision when borrowing funds for your personal or organisational need cannot be over emphasized. Basically, when individuals choose to go for funds to expand a business, personal need and purchase of land, the best option is a loan.

But when institutions seek to raise a short-term find to cover salary, purchase of materials and other office expenses, an advance is the best.

Stay tuned. We will discuss the differences between the two terms and in this article. 

loans-and-advances-in-kenya

What is a Loan?

A loan is a sum of cash or fund that you borrow and expected to pay with an interest on a specific due date. A loan is also an act of lending of money by individuals, financial institutions, and other entities. Some even borrow airtime.

The borrower incurs a debt which 8sbmwant to be repaid. The lender and borrower agree on the interest rate and repayment terms.

Moreso, loans are often secured with a collateral, credit score and other required entries which helps to reduce the risk of the loan.

Objects of Loan Contracts 

Contracts of loans includes objects like:

  1. The principal amount
  2. The repayment amount
  3. Number of repayment duration 
  4. The repayment terms and
  5. Collateral, if there is any.

Types of Loans

Types of loans include:

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

What is an advance 

An advance is a means of finding rendered by the bank to other institutions or entities to meet up a short-term need (often less than a year). 

Facilitation in advances 

The key facilitation of advances includes:

  1. Primary security: This includes the promissory notes, and here the bank stands as a priority to repay the loan before any other parties involved. 
  2. Collateral loan: This is more like a mortgage of property like land, buildings and other fixed assets.
  3. Guarantees: It is given by the partners, promoters, chief executive officers and so many others.

Types of Bank Advances 

Types of bank advance we have are:

  1. Short-term loans 
  2. Overdraft 
  3. Bill purchase
  4. Cash credit 

Conclusion 

Normally “Loans” and “Advances” are seen as “Loans”. But technically, and for all things balanced, the two terms are distinct.

As it stands, a company or an individual who needs funds for personal use or capital projects shall get a loan.

The agreement is between the borrower and the lender and the latter agreeing to pay the sum with an interest. But a company needs to solve a short-term financial need shall go for an advance. So loans and advances have been explained properly in this article.

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.

Quick Online Loans in Kenya

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

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

quick-online-loan

What are Online Loans?

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

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

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

Top 6 Online Loans With Instant Approval

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

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

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

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

What are the Requirements for Getting Online Loans in Kenya?

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

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

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

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

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

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

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

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

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

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

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

How Fast are Funds Released 

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

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

Do’s and Don’ts of Getting Online Loans

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

Do: Check Your Credit Report

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

Do: Consider the Risks if you Have Bad Credit

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

Do: Read the Fine Print

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

Don’ts

Don’t: Accept the First Loan Offered to You

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

Don’t: Take out the Maximum Loan Possible

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

Don’t: Skimp on Payments

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

Conclusion 

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

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

M-Pesa Loans – How To Apply And Everything You Should Know

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M-Pesa is an outstanding mobile money service in Kenya, that offers a credit called M-Pesa loans and it is the most preferred platform for payment. Mobile payments are rapidly taking over with M-Pesa loans dominating the market.

It acts as a financial service provider for Kenyans who have an option of sending and receiving money and applying for loans. M-Pesa is the most affordable way to handle money transfer and loan applications. 

Let us explore M-Pesa loans in Kenya.

About M-Pesa 

Vodacom and Safaricom own the M-Pesa brand. It started officially in 2007. The new joint venture done in early 2020 was to speed up its growth. Customers register for the services and perform different transactions like loan apps and other things. Instant loans from M-Pesa can get you a loan with a maximum of Ksh.500 to Ksh.50000 without collateral. 

 Pros and Cons of M-Pesa Loans

Pros

  1. It is easy to access online M-Pesa loans
  2. M-Pesa account is cheap and easy to use
  3. Used and accepted in Kenya
  4. A local means of payment when you do not have a bank account 
  5. They built your M-Pesa Sim to automatically use the apps.
  6. The apps built by M-Pesa is popular in Kenya.

Cons:

  1. They often hinder instant loans when you do not have an M-Pesa account. However, buy the M-Pesa sim and register and use it for six months to be eligible.

M-Pesa Loans Applications

They created a lot of apps to handle M-Pesa services and transactions. Once you apply for a loan on the platform, your money will be in your M-Pesa account within minutes. The M-Pesa loans application includes:

KCB M-Pesa Loans 

Registered customers of M-Pesa go for the loan services of KCB M-Pesa loans. You can deposit and withdraw through the services. You can also get a loan between Ksh.50 and Ksh. 1million based on the loan limit you qualify for.

You need a Safaricom Sim already built to house the app and they charge your loans at 3.6% interest rate.

M-shwari loan app

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

Tala loan app

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

Branch loan app

They are a product of Branch International which was established in 2015. To start using the app, download it from google play store and create an account on the app. Your Facebook account, Safaricom mobile number and National ID is needed. Moreso, you can get between Ksh.250 to Ksh.50000 and can repay with M-Pesa paybill number. 

Timiza loan app

Timiza offers M-Pesa Loans at an affordable price. The amount of loan to get on this app depends on your M-Pesa history. It is an App by Barclays bank in Kenya. You can access up to Kshs.150,000 with an interest of 6.17%. A maximum repayment term of 30 days. The loan limit is often displayed on the app and you can not exceed the loan limit during loan application. 

Haraka loan app

They provide instant M-Pesa loans to citizens of Kenya between the ages of 18years to 60years. You can access Ksh 500 to Ksh 5,000, with a repayment tenure of 30 days. An interest rate of 23% is charged. The loan app is owned by a South African lender called GetBucks. They also offer their loan services to other parts of African countries. 

Opesa loan app 

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

Shika loan app

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

Saida loan app

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

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

How can I get a loan from M-Pesa 

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

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

Eligibility for M-Pesa loan

The eligibility needed for online M-Pesa loans include:

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

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

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

How to repay M-Pesa loans

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

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

Conclusion 

As M-Pesa evolved from a simple payment platform to an actual full-fledged Fintech company, it enabled lending for Kenyans.

In Kenya and other African countries, M-Pesa is the highest champion in mobile payments. Their services have expanded to other loan apps using M-Pesa since they launched M-Shwari, a smartphone app, in 2012. M-Pesa is widely known and used in Kenya. 

Loan Apps Like Dave – Everything You Should Know

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Tough times have been the issue why people borrow. With Dave, obtaining financial support for your loan and budget won’t be a problem. You plan for upcoming expenses by using loan apps like Dave. Borrowing is also one peculiar thing you can do on these apps. These applications are all about financial management and support. 

Therefore, loan apps like Daves share almost the same features with Dave.

All You Need to Know About Loans Apps Like Dave

Loan apps like Dave only charge you a monthly subscription fee or a one time fee. Some do not charge at all. You do not have to worry about paying back a fixed and variable interest. Individuals can borrow up to a large minimum they need instantly.

Moreso, loan apps like Dave are majorly the best payday loan lenders.

Pros:

  1. No fixed interest rates, management and support fee
  2. Centers on financial management
  3. No credit checks to determine your creditworthiness
  4. You can borrow even if your credit score is not good.

4 Loan Apps Like Dave

Loan Apps Like DaveStandard FeeBest ForPros Cons
MoneyLionNoneUsed mainly for building credit scoreA. There are no fees for standard delivery.
B. Has a two-day-early paycheck.
C. Customers can get up to a $250 loan.		A. A “Turbo Fees” is applied for an instant loan.
B. Has no effect on credit scores.
Varo$0 – $5 per monthServed best for all bank features A. There are no fees attached on loans of $20 or less
B. Has a two-day-early paycheck		A. Has a high fee percentage.
B. Has a low cash advance limit.
Empower$8 per monthBest used for cash back rewards A. There’s no interest or fees attached.
B. Has a two-day-early paycheck.
C. You can get up to $250 in loan or cash advance.		A. Comes with a paid subscription service.
B. Your account criteria decides the loan amount.
EarnInNone Used best for managing bank account A. No fees applied.
B. Has a two-day-early paycheck.
C. You can get up to a $500 loan.		A. The bank fees can apply or extend to “Lightning Speed” payments.
B. The loan app is only available to U.S. citizens. Kenyans can’t use it.

Other Loan Apps Like Dave

We will jointly explore and discuss 6 other loan apps like Dave:

  1. Branch International
  2. Brigit
  3. Sofi
  4. Avant
  5. Speedy Cash
  6. ACE cash express

Branch International

They give users easy access to loans. Using the app, you can sign up for financial help, apply for loans and receive it within minutes. The app also helps you create a budget and access your earnings.

Brigit

This application is similar to Dave. It allows you to get up to $250 loans. You can budget and save on the app. With these you can get a clear view on your spending habits and keep track of the daily and monthly bills. Brigit gives a no-interest loan, flexible repayment and extension on advances.

Sofi

They offer many financial solutions to customers. The app gives you access to loan, trading of shares, stocks and cryptocurrencies. You are given a debit card which allows you to earn a reward when you spend on company’s brands.

Avant

You can use this loan app to borrow, see upcoming repayments and your payment history. Loan of up to $35,000 can be accessed. These loans can be processed within minutes.

Speedy Cash 

Speedy cash is one of the lending loan apps like Dave that provided access to different types of loans. The application allows you to manage your payday, credit or extra cash on your existing loans. You can borrow a minimum of $50 to $26,000 on the app.

ACE Cash Express

They give you a loan, manage it and refine it in fast and flexible steps. You can use the app to make repayments, schedule recurring expenses and plan on payments.

How you can get loans from these loan apps like Dave

Getting loans from these applications are simple and very flexible. The steps are:

  1. Download the loans app
  2. Install the app on your smartphone 
  3. Register on the app and supply other required personal information 
  4. Apply for the loan limit available for your through the “Apply” tab

Read up on how Dave Loan App reviews and how it works.

Who needs loan apps like Dave

  1. Those with steady paycheck
  2. Individuals who wish to get out of financial crises. These apps will help you to plan and budget
  3. People who wants to assess their spending and borrowing habits
  4. customers who need quick cash to settle emergency expenses.

You can also get a loan from the powerhouse National Bank of Kenya.

Conclusion

Loan apps like Dave make it easier for consumers to manage finances and get support when they need it. Some pay you cash advances based on money you earn, offer loans without interest, rewards for using the app, and so on. Finally, you can use these applications for planning, budgeting and many other things.

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.

Dave loan app- reviews and how it works

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In terms of cash advance apps, Dave loan app stands out from the competition. It allows users to cover expenses until their next paycheck. With this platform, you don’t have to worry about interest rates. The monthly fee is $1 and can be redeemed by making purchases from connected businesses. 

Dave loan app- reviws and how it works

What you need to know about Dave app

On the Dave app, you can only request for a maximum cash advance of $100. Dave app gives one advance at a time. Getting an advance doesn’t impact your credit score or rating. Penalty fee and other processing fee do not exist. In a nutshell, if you are thinking of using the app to get an advance, here are a few things you need to know:

  1. No interest rate
  2. No penalty or additional fee
  3. Withdrawal limit of $100
  4. No credit checks 
  5. A platform for saving money
  6. A budgeting tool
  7. A funding option

How Dave’s loan app work

Dave app works in various ways. They include:

  1. Helps you budget for upcoming expenditures using the automatic budget tool
  2. Text you when you are in danger of overdraft. So it helps tracks your expenses 
  3. Doesn’t check your credit, no need to worry
  4. Charges a membership fee of $1 per month
  5. Grants your advance at a time
  6. Expects you pay back at the due date or risk being banned from using the app.

3 Eligibility requirements for Dave loan app

To be eligible or to use the Dave app, you must:

  1. Have a steady paycheck
  2. Have your paycheck paid directly into your bank account as your checking account 
  3. Show that your bills do not consume your entire paycheck but have extra money left after each month.

Who is the Dave app good for?

The Dave app is good for the following set of individuals:

  1. Individuals with a steady paycheck who need an additional extra dollar each time
  2. For those who wants to boost their income and curtail expenses 
  3. For people who need financial help and guide on budgeting 

3 ways on how to sign up on a Dave app

  1. First, download the app from Google play store and install it on your phone
  2. Open the app and click ok “Sign up for Dave”
  3. Follow the prompt by supplying additional information like:
  1. Phone number 
  2. Email address
  3. Banking credentials
  4. Password 
  5. Low bank alert amount

How to cancel Dave membership within the app

To cancel membership within the app, follow the steps below:

  1. Locate “Profile” tab
  2. Under setting check “Membership”
  3. Tap the “Manage membership,” tab
  4. Choose “Manage membership” once more
  5. Select “Pause or Cancel,”
  6. Choose “Cancel membership.”

How to contact Dave loan in their application platform 

You can contact Dave loans through the server message on the app. Look for the “Profile” tab and choose “Email support”. Within 24hours a member would get back to you. Additionally, you can chat with the support team directly online at https://suppor.dave.com by selecting the chat icon on their website.

Conclusion 

Dave’s loan app is ever ready to serve you well. It offers a unique cash advance system that can be used to solve an emergency financial need. Other than the $1 monthly membership fee, there is no interest rate or additional fee. You can get a cash advance of up to $100 at a time.

The Dave loan app offers more than just funds; it also offers support. It keeps track of your expenses and helps you cut back on unhealthy spending. 

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.

I Need an Easy Cash Advance, Which Loan Would be the Best? 

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Have you found yourself in a financial situation where you need a loan to tide you over for a few months? If so, the first thing that comes to mind is how can you get an easy cash advance. But finding one of the best loans in Kenya can prove ‌quite a challenge. In borrowing money, most lenders require that you meet certain requirements and go through several stages before they even give you a chance to borrow their money. These requirements and stages are mostly time-consuming and end up wasting most of your time instead of getting you the loan of your dreams.

I Need an Easy Cash Advance, Which Loan Would be the Best?

The best solution when I Need an Easy Cash Advance, Which Loan Would be the Best? 

When you face a financial emergency and you need cash in a short space of time, what are your options? You can do several things such as:

  1. Borrowing from friends, family, or even taking a loan from a credit union. These loan options may not be that easy to get if you have been suffering from bad credit scores.
  2. The easiest other option for you then is to look for an online loan lender that can approve the easy cash advance that you need in no time.
  3. Try the Saccos and credit unions. Most consumers need cash for different purposes like paying bills, buying food, paying school fees, and many more. The loan industry is a lucrative business in Kenya and there are several investors and unions who are ready to provide financial support to those interested.
  4. You can also try out traditional and other direct lenders.

Applying for the Best, Easy Cash Advance Loan Online

You are in debt and you have Ksh. 35,000 which you need to raise. You need cash. You need it now. Applying for the best and easy cash advance loan online will depend on many factors. These factors need to be put in check as often as possible. They include:

  1. The lender you choose and your preference.
  2. To have good deals, you may have to have a good credit score.
  3. Check out for the best cash advance loans online that offer credit that can be paid back over a few months
  4. See to choose and ride along with accepting lenders who offer borrowers who have bad credit ratings and cannot offer collaterals.
  5. Be sure to provide and have a legit income statement which is a factor that also determines how much you can borrow both online and offline.

Credit Card Advances vs. Payday Loans vs. Installment Loans

Are you looking for a personal loan? It can be very overwhelming when looking for the best personal loan to meet your needs. You may have a number of loan providers asking for your business, but will all these companies provide a good service?

Let’s take a look at credit card advances, payday loans, and Instalment Loans. Check out the differences.

Credit card advances: They are short funds offered by credit card companies in Kenya as cash advances, on your credit card. It is very flexible to use and can be repaid based on the terms and conditions of the lender.

Payday loans: Payday loans are short-term loans or a quick credit that have to be repaid in lump-sum on your next pay date or once you receive your paycheck l, depending on the agreement. Most times it is repaid on the last day of the month and has a minimum of 30days duration.

Installment Loans: direct lenders and traditional lenders offer Installment loans. Traditional credits are repaid in installments in most situations. While the online installment loans from a direct lender render the same benefits as payday loans but are more flexible with the repayment terms.

What to consider when you need an easy cash advance

Loan applications in the country have been experiencing a boom ever since the government made it a duty for all banks to provide small loans to their customers. This has been followed by many loan companies entering the market who also offer loans to Kenyans at relatively cheaper interest rates. What to consider before you choose any lender:

  1. The interest rate
  2. Their 24 hours transfer
  3. 24/7 loan accessibility
  4. Their No credit checks options
  5. No collateral
  6. Online application

What to do if you need your Loan on the Same Day

A loan is a very vital tool in society to establish a business and get the capital needed to start it. What you need to do if you need your loan on the same day is by sourcing through a direct lender. This is not guaranteed but most direct lenders offer it easily. It is achieved with no collateral or mortgage to build confidence for a startup. A person has to be 18 years old and above to apply for a loan. Having a valid bank account is also another key requirement. Bear all these requirements in mind as you proceed with your loan application.

Bank Loans may not be Easy to get, but could Save you Money

Having a hard time making ends meet with your high loan installments? Or thinking of repaying with large interest. Bank loans save a lot of money when compared with payday loans. 

I have met people who don’t enjoy taking high amounts of loans from the bank because of the collateral and other rigid requirements. However, they ‌serve a purpose, but only in a very particular situation, saving you a lot of money as regards if you had applied with payday lenders. Their interest rate is lower.

Other Searches- Payday loan for people with disabilities in Kenya

Conclusion

A loan is a good choice if you want to borrow money but you do not know where to get a loan. The best lender is always the person who gives you money easily and faster than others can usually accumulate. However, it is also pertinent you check the ones that carry a high risk of defaulting on payment. Those also with high-interest rates. The benefits and disadvantages of each category and their characteristics should be of utmost importance.

Higher Education Loan Board Kenya

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Due to COVID-19 and other uncertainties regarding college and tuition, planning for expenses is not as easy as you think. Regardless of whether you attend college or study online, one thing is for sure: you will have to pay all dues. That is where the Higher Education Loan Board (HELB) Kenya comes in.

Now you can pursue your dream of studying in Kenya with less hassle. They offer student loans which provide a convenient and intelligent means of financing your education.

HELB, a state-owned and regulated institution, provides flexible and affordable student loan plans. HELB offers quite a number of different products that can benefit you. 

Let us discuss higher education loan board Kenya and all you need to know.

About higher education loan board Kenya

The Higher Education Loans Board (HELB) was legally established in July 1995. It was approved according to the Higher Education Loans Board Act (Cap 213A) of the parliament.

They are the foremost financing institution of higher education in Kenya. HELB is a state institution present in the Ministry of Education, Kenya.

How HELB loans work 

  1. HELB provides financial help to postgraduate and undergraduate students. 
  2. The aid can take the form of loans, bursaries or scholarships.

Who is eligible for helb loans?

All Kenyan students pursuing certificate in Diploma and higher national Diploma are eligible for HELB loans.

The students must be in public universities, selected university colleges in Kenya, public national polytechnics, and approved TVET Colleges under the Ministry of Education.

HELB online sidebars

Different sections on the higher education loan board page are:

  1. Student portal: it provides loan information for students
  2. Loan portals: individuals or beneficiaries who need to pay up or check their payment status
  3. Employer portals: employers seeking to deduct HELB loans from their workers’ salaries
  4. Institution portal: for institutions to see disbursement status of student tuition fees.

The major functions of HELB

  1. Offer affordable loans and bursaries to Kenyan students.
  2. To provide scholarship to Kenyan students from recognized higher education institutions in Kenya.
  3. Get funds and distribute them to students judiciously.
  4. Establish, manage, and recover funds loaned out to students.

4 major Higher Education Loans Board products 

We will explain the products and services offered by HELB below:

Higher Education Loans Board (HELB) Loan

Kenya higher education students receive an offer from HELB that is reimbursable. It is affordable and highly flexible.

The government provides A low interest rate through HELB to Kenyans who are pursuing higher education.

The Higher Education Loans Board Scholarship

HELB offers the following scholarships that are non repayable. They are:

Visa Oshwal Scholarship Program: Through the program, twenty (20) students are government sponsored every year to study in higher institutions.

The duration of the scholarship is throughout the course of study with a net value of Ksh. 100, 000 yearly. This scholarship is possible because of the partnership between HELB and Visa Oshhwal Community.

ABSA program: they designed this program to empower young bright Kenyan students who cannot afford to pay their tuition fees. The financial aid is made possible because of the partnership between HELB and Barclays Bank of Kenya. The beneficiaries  are given accommodation, upkeep and tuition fees equivalent to Ksh. 150,000.

Postgraduate scholarship: A two years and three years partial scholarship programs provided by HELB for Kenyan postgraduate programmes. It is for those pursuing Masters or PHD programs from any university commissioned by University Education (CUE) in the country.

The worth of the scholarship for Masters and PhD programmes are ksh. 200,000 and ksh. 450,000 and for a duration of 2 years and 3 years, respectively. 

The (HELB) Partner Funds.

In Kenya, HELB receives a lot of funding to assist young Kenyans who would love to continue their education but lack the financial ability to do so.

The HELB partnered with local and international organizations to source the needed funds. HELB considers the applications for the program and ensures that they select beneficiaries based on the criteria set by the partners.

The HELB platform charges Ksh. 500 for every loan approved, and a yearly fee of ksh. 1000. It is used to maintain the account of the borrower until the loan is due at interest rate agreed on with the partners.

In addition, HELB gives loans to applicants whose application was successful and also recovers the loan from those whose loan is due. 

Higher Education Loans Board (HELB) Devolved Funds.

The devolving fund is established by the partnership of HELB and county governments. County governments and constituencies help to manage the bursary schemes through:

  1. Both parties sign a service contract.
  2. Both parties work together to draft the legislation for the program.
  3. Among its duties are to source, manage, disburse and recover funds.
  4. The funding of the revolving fund begins, and applicants are invited to apply.

4 Benefits of the Partnership

HELB partnerships have a lot, especially for Kenyans willing to pursue their higher education dreams in Kenya. They are: 

  1. There is efficient data sharing, which prevents multiple payments for a particular student.
  2. The process of application and selection is transparent via an online application platform.
  3. The selection and payment mode has less error and human interference since they automate the process.
  4. There are effective recovery procedures which enable the funds to revolve for sustainability.

How much money can I borrow from HELB?

The amount depends on the product you applying for. Each product has a unique amount and features attached to it.

Why should I take HELB loans?

There are several reasons HELB loans are of benefit to the students. The reasons are:

  1. It is owned by the state and also regulated 
  2. Longer repayment terms with a lot of benefits 
  3. Offer enough funds to take you through your education 
  4. Lots of products are available which you can choose from. 
  5. They give equal opportunity to everyone who meets up with the requirements
  6. Some products require that you don’t pay back immediately. 

What to consider when taking out loans with HELB?

In the same way, as you take out a loan, it is important you know everything concerning the loan. The things to consider are:

  1. Know how much you are borrowing 
  2. Understand the terms of the HELB loans
  3. Be sure of stable sources to pay back the loan of need be
  4. Check whether the amount you qualify for can cover all your school’s essential needs.

How To Update Your HELB details?

Follow the steps below to update your HELB details.

  1. Visit to the Higher Education Loans Board (HELB) website www.helb.co.ke. or use their application.
  2. Navigate to my account on the HELB App or website.
  3. Select Institution.
  4. Select edit and update.

How to apply for HELB Undergraduate Loan online 2020/2021?

The following steps are to be followed when applying for a HELB loan online. 

  1. Go to the HELB student portal website.
  2. Choose “Create account” to have your HELB account.
  3. Make sure you study and fill the HELB financial literacy literature correctly.
  4. After account creation, click on the link first time undergraduate loan application.
  5. To apply, fill the 2020-2021 first time undergraduate loan application form (LAF) provided with accurate information.

Causes of delays in HELB loan processing

  1. The application will be rejected if it lacks any required documents and signatures. 
  2. If the applicant provides untrue information 

How do I check my HELB balance?

You can check for information on the HELB loan balance. This can be done online (using the internet) and Using SMS Service. We explain the steps to check this information below:

  1. Go to the Higher Education Loans Board (HELB) website www.helb.co.ke.
  2. To check your loan status, click “loan status”.
  3. Your loan disbursement status appears in a form once you click on “disbursement”.

How to check your HELB loan balance through SMS?

You can check your loan balance via SMS through the following steps:

  1. Write the name used to create the account. For instance, John Doe.
  2. Put the hash sign (#).
  3. Input your ID number.
  4. Send the message to the 5122 and wait for your balance 

How to contact HELB

The higher education loan board headquarters is currently on the 19th Floor, Anniversary Towers, Nairobi- Kenya. The post office address is P.O. Box 69489-00400.

Conclusion 

Education can be quite expensive but with HELB, there is a good way to finance studies. They empower students with loans to make it easier for them to pursue their studies.

HELB has come to stay and has served Kenya to a large extent. A lot of students have gained and people are still benefiting.

However, before applying for a student loan through HELB, be sure to know all it takes. It is smart to check out all their products and know the one you qualify for.