Search Results for: loans in Kenya

Best Logbook Loans in Kenya

October 14, 2023 by olamide Leave a Comment

Logbook loans in Kenya are a type of secured loan where the borrower’s vehicle logbook (vehicle registration document) is used as collateral to obtain a loan.

This type of loan is popular in Kenya, where individuals can leverage their personal vehicles to access quick financing. Sometimes people call them emergency logbook loans because they are the easiest way to access credit for emergencies.

5 Best Logbook Loans in Kenya

We know that the concept of “best” can vary depending on individual needs and preferences. However, we can provide you with the best logbook loans based on our personal experiences with some of these loan lenders in Kenya.

KCB Logbook Loans: They are one of the best banks in Kenya that gives logbook loans to eligible borrowers who meet the requirements. Some of their requirements include having an active KCB account that is a minimum of three months, original payslips, Kenyan ID and other documents. You can check out their sites for more details on this type of loan.

Family bank logbook loans: The family bank is one of the best great Asset financiers in Kenya with good reviews online. They offer asset loans to business account holders and are intended to assist in the acquisition of assets. You are required to present the original copies of your logbook to access the credit. They also have their unique requirements which you can check out via their website.

NCBA logbook loan: The bank launched their logbook loan in 2021 and since then they have been giving out credit to borrowers who meet the requirements. This loan type enables borrowers to access up to 50% financing against an owned vehicle. Visit their office near you or log into their website to learn more about this loan type.

Equity bank logbook loan: They are a reliable and accessible bank for easy logbook loans. Equity bank is known for giving reliable asset financing to borrowers. You can get your logbook loans within a few hours of submitting all required documents.

Ngao Logbook Credit: They give you up to 50% of the value of your car or up to KES 3 million in less than 24 hours to repay within a period of up to 15 – 20 months. Their requirements are easy to meet and they can be a good fit for solving emergencies by using your car as collateral.

Reasons Why These Logbook Loan Providers Are the Best

Credibility and Reputation: These lenders have a good reputation and positive customer reviews. They are licensed by the relevant regulatory authorities in Kenya, such as the Central Bank of Kenya, to ensure they operate within the legal framework.

Interest Rates and Fees: We compared the interest rates and fees among different lenders and we found out that the lenders listed above are the best. They all offer competitive rates and transparent fee structures. Also, they don’t charge excessive interest rates that could lead to financial strain.

Loan Amount and Repayment Terms: Their maximum loan amount and the flexibility of repayment terms are great. Look for lenders that provide loans that meet your specific financial requirements and offer manageable repayment schedules.

Customer Service: These lenders have a responsive customer service team that can address your inquiries and concerns promptly. Good customer service indicates a commitment to assisting borrowers throughout the loan process.

Loan Approval and Disbursement Process: When you evaluate the efficiency and speed of their loan approval and disbursement process, you will choose them. They all have a streamlined application process and can disburse funds quickly once the loan is approved.

Requirements For Logbook Loans

It is essential to know the requirements for logbook loans and get them ready for the loan. We all know that different logbook loan lenders have unique requirements but we will be listing the general requirements we know of.

Filled application form
Bank statements for a period of 6 months
Two copies of your passport photograph
Original three-month payslips
Copy of your national ID or passport
Your KRA PIN
Proof of your place of residence
Copies of logbooks of your vehicle or for other motor vehicles (Used vehicles).
The year of manufacturing of the vehicle should not be more than 10 to 12 years as a loan expiry

Some Other Lender’s Requirements Like Family Bank And Other Banks

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

Pros and Cons of Taking Logbook Loans

Pros

The loan comes in handy during an emergency.
Logbook loans offer longer repayment periods between 12 – 36 months.
Logbook loan provides more time to get your finances in order.
Comes with a lower interest rate when compared to payday loan
People without a high credit score can secure the loan. Most lenders don’t look out for high credit scores but on the logbook documents.
Once you meet the requirements, the process can be completed within 24 hours.

Cons

In all cases, one of the stringent requirements would be first to transfer the car ownership to the lender.
If you do not keep up with repayments, most times, the car will belong to the lender, depending on the agreement. Or they will sell off your car to recoup the loan interest and the principal amount.
The amount you will get as the main credit will depend on the car’s age, the mileage on the vehicle, and the general condition of the car.
The loan comes with a high-interest rate when compared to mainstream finance.

Conclusion

There are different best logbook loan lenders in Kenya and we have listed five of them in this article. If you have any reason why you won’t be using any of these lenders in this article, conduct proper research and compare lenders.

Remember, logbook loans come with risks, including high-interest rates and the potential loss of your vehicle if you default on the loan. It’s essential to carefully consider your financial situation and evaluate the terms and conditions before taking a logbook loan.

Tuk-tuk Loans in Kenya

September 18, 2023 by olamide Leave a Comment

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

It is essential to research and compare the terms, requirements, interest rates, and repayment options offered by different lenders before deciding to go for Tuk-tuk loans.

Additionally, consider factors such as customer reviews, reputation, and customer service when selecting a Tuk-tuk loan provider.

What are Tuk-tuk Loans?

Tuk-tuk loans in Kenya allow individuals to own a Tuk-tuk (three-wheeled motorised vehicle) through a loan arrangement.

The loan lenders give out the funds to purchase or lease Tuk-tuks, allowing people to enter or expand their operations in the transportation sector.

Majority of lenders request a deposit which averages ksh 50,000 to be provided by the borrower.

On the borrower paying the deposit to the lender, a rider will be given the Tuk tuk right away and then pay monthly installments as signed and agreed.

How Much Does a Tuk-tuk Cost?

Tuk-tuk loans in Kenya have no specific cost amount but depend on what each lender collects as an initial deposit price. Most lenders ask for a deposit of Ksh 50,000 or even more.

Some banks can finance up to 70% to 90% of the Tuk-tuk price. It depends on the policy of each financial institution in Kenya.

How to Get Tuk-tuk Loans in Kenya

To get a Tuk-tuk loan in Kenya, you need to follow the guidelines below:

First conduct background research on the lender.
Prepare your necessary and additional documents and compile other personal information.
Visit the lender’s closest branch and pick an application form
Fill out the form with honesty and don’t forget any information
Submit the form and other necessary documents.
Wait for the evaluation and Approval Process.
Once approved, you will be called to come pick up your Tuk-tuk. Or the bank will pay the agreed financing amount into your account.

Best Tuk tuk Loans in Kenya

There are a lot of Tuk-tuk loan providers but the best you can find in Kenya are:

1. Mogo Tuk-tuk Loans

Mogo Tuk-tuk loan is one of the best Tuk-tuk loans in Kenya as they specialize in that type of credit. To access this loan, you don’t need to stress, just visit the nearest Mogo outlet near you and apply.

A borrower with a good credit score can deposit ksh 50,000 and ride home with a brand new Tuk tuk of his choice, provided it’s in stock.

2. Watu Credit Tuk Tuk Loans

Watu Africa which was formerly known as Watu Credit is also one of the popular Tuk-tuk Loans providers in Kenya.

To access the Watu Credit Tuk tuk loan, visit the nearest Watu Credit near you and apply.

Note that you will be asked to submit some documents and also pay a deposit before getting the Tuk-tuk.

3. Car and General Tuk Tuk Loan

Car and General are also providers of Tuk tuk loans in Kenya. Visit the car and general office nearest to you in Kenya and apply for the loans.

Some of the other popular Tuk tuk loans in Kenya come from the following lenders;

4. KCB Bank Tuk tuk Loans

KCB Bank offers Tuk tuk loans as part of their “Get a Loan for a Small Business” program. With KCB Bank, you can get up to 70% financing of the purchase price, with a maximum of KES 5,000,000, plus insurance if needed.

They also provide flexible repayment terms, allowing a repayment period of up to 24 months for Tuk tuks and 12 months for motorbikes.

Their requirements are subject to change, ensure you visit their website or office for more inquiries.

5. JoyInc Tuk Tuk Loans

JoyInc is a financing company that provides Tuk tuk loans in Kenya. To become a Tuk tuk owner with JoyInc, you can make a down payment of Kshs 50,000 and become a proud owner within 2 hours.

6. Equity Bank Tuk Tuk Loans

Equity Bank, one of the largest banks in Kenya, offers Tuk tuk loans to both individuals and groups. They provide flexible loan terms and competitive interest rates to support your Tuk tuk ownership.

Other Tuk-tuk Loan Providers in Kenya

Some of the other Tuk tuk Loan providers in Kenya are:

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

Requirements for Tuk tuk Loans in Kenya

To be eligible for Tuk-tuk Loan, the lender needs potential borrowers to meet the following requirements:

Provide a 3-month active account statement with any financial or business institution.
Get a proforma invoice from Tuk Tuk dealers.
A valid driving license of the borrower/rider.
Show a document proving your ability to repay the loan.
Make an initial deposit of up to ksh 50,000 and above the lender. However, the banking system expects you to meet up to 30% of the Tuk-tuk cost and they will finance the 70%.
A guarantor who holds an account with the lender by the KCB account holder where a log book is a help on simple deposit.
A 6 months banking history with the lender or three months of group savings.

Note: we advise you to check for more requirements on the lender’s website before going for the loan. Optionally, you can contact their customer service or fill out the form online.

Conclusion

Some of the lenders you can consider while looking for a Tuk-tuk loan are:

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

Please note that the information provided is based on available sources, and it’s recommended to directly contact the lenders or visit their official websites for the most accurate and up-to-date information.

Cheapest Bank Loans in Kenya – All You Need To Know

September 11, 2023 by hakeem

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:

Bank	Overall rate
The Central Bank of Kenya	9%
First Community	9%
Ecobank	10.7%
HFC	11%
Access	11.2%
Consolidated	11.6%
Habib	11.9%
DTB	12.1%
Citibank	12.2%
KCB	15.6%

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

Factors That Cause a Change in Interest Rate

The factors that cause changes in interest rates include:

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.
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.
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.
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:

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.
Operational costs: Operational costs such as overhead, administrative and personnel expenses, and other costs of providing loans also contribute to the interest rate charged.
Yield curves.
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.
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.

Mortgage loans in Kenya – What you should know

August 30, 2023 by hakeem

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

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

What is a mortgage?

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

Types of mortgages in Kenya

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

Fixed-rate mortgage and
Adjustable rate mortgage

Fixed-rate mortgages

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

Adjustable rate mortgage

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

Processes of getting a mortgage loan

The processes for getting mortgage loans includes:

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

Also check out how to apply for mortgage loans in Kenya

General Documents required for mortgage loans in Kenya

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

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

Parameters used in scoring approval of mortgage loans in Kenya

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

Total income
Sum amount of your personal expenses
Credit score
Whether you possess a solid source of income
The duration of the contract
Details of the property
Age of the borrower

Some mortgage providers in Kenya and their interest rates

Lists of mortgage providers in Kenya range from:

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

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

Charges associated with mortgage loans

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

The main mortgage interest rate
Negotiation fee, which is often 2.5%
Stamp duty
Commitment fees
Legal fees
Valuation fees
Ledger fee which is charged on a monthly basis.

Conclusion

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

Quick Online Loans in Kenya

August 22, 2023 by hakeem

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

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

What are Online Loans?

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

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

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

Top 6 Online Loans With Instant Approval

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

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

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

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

What are the Requirements for Getting Online Loans in Kenya?

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

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

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

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

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

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

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

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

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

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

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

How Fast are Funds Released

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

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

Do’s and Don’ts of Getting Online Loans

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

Do: Check Your Credit Report

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

Do: Consider the Risks if you Have Bad Credit

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

Do: Read the Fine Print

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

Don’ts

Don’t: Accept the First Loan Offered to You

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

Don’t: Take out the Maximum Loan Possible

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

Don’t: Skimp on Payments

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

Conclusion

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

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

Debt Consolidation Loans in Kenya Explained

May 8, 2023 by hakeem

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.

Business startup loans in Kenya – Meaning and how to apply

April 26, 2023 by hakeem

Business Startup loans in Kenya are affordable and accessible. You have been thinking of starting up a business and you don’t have the cash to fund it, think no more. This article is for you. Kenya has different modes and channels a borrower can source for funds to start up a business.

In addition, as a startup, taking up a loan is one thing, repaying is another. Go for loans you can wisely utilize and repay within a short while and have your business still moving.

We will take you through business startup loans in Kenya and how to access them.

What are business startup loans

Business startup loans are loans made available by different financial institutions and private lenders in Kenya for the purpose of funding a business.

The borrower qualifies, applies and then gets approved and has the loan for the sole purpose of starting up a business.

What you need to know about business start-up loans

There are things you need to know about business startup loans. They are:

Quick loan application procedure
Easier to qualify
Easier to meet up with the requirements
Transparency and honesty of lenders in revealing extra hidden fees.

How to apply for business startup loans in Kenya

To apply for a business startup loans, follow the procedure:

Avail yourself, study and compare lenders
Visit the financial institution or lender’s website
Find out the eligibility and requirements
Know the documents to submit and get them ready
Fill the application form either online or offline
Visit the lenders branch and submit the application
Attach your documents
Wait for approval and loan disbursement

Ways of accessing business startup loans

There three basic ways of accessing business startup loans in Kenya. They are:

Mobile lending
Micro lenders and Credit union
banks

Mobile lending business startup loans in Kenya

There are different mobile lenders offering loans to business startups in Kenya. They as follows:

M-shawari
Tala
Branch
KCB M-pesa
Grofin
Equitel
Kopa Chapaa

Micro lenders and Credit union for business startup loans in Kenya

Micro lenders and Credit unions also give out business startup loans. They include:

M-co-op cash
Bitband- peer-to-peer lending
Kiva- Peer to peer lending

Banks for business startup loans in Kenya

Banks for business startup loans are:

Equity groups
Chase banks
Family bank
Kenya commercial banks
Standard chartered banks
Barclays banks
Prime bank

Credit score for a business startup loans

Generally, you need 680 and above for banks to give you a business startup loan. But you will still find lenders that will give you a short-term loan to start your business at 550 and 600 credit score.

How much loan can you get as a business startup

The amount given by lenders to borrowers for starting a business differ from lender to lender. Typically, you can borrow from ksh. 1000 to ksh. 30000. It depends on the lender or the financial institution.

Documents needed for business startup loans

The documents needed for business startup loans are:

National ID
Proof of address and recent passport
Certificate of registration for some lenders.

Is it difficult to get a business startup loan?

It is not hard to get a business startup loan. The issue is that some banks believe that lenders require cash flow to be able to make payment and not default.

General ways of repaying business startup loans

Repaying business startup loans differ from lender to lender. The general way of repaying it includes:

Open you M-Pesa account
Choose paybill
Enter the business number of the loan platform
Input the amount you want to repay
Enter your M-Pesa pin
Click ok and send.

You can also choose to transfer from your bank account. It all depends on the lender’s mode of loan repayment.

Conclusion

Failure to access bank loans should not be the end of the road for your small business. Check out other means. Carry out your study well. Thanks to the various online lending options that exist in Kenya today.

Government Programmes For Agricultural Loans in Kenya

April 19, 2023 by hakeem

The increase in the country’s population and the call for higher-value agricultural production gave the need to invest in agriculture. Also, the constant demand for food and change in dietary preferences of citizens turned the agricultural market as the most sorted for.

There are several ways you can apply for a loan in Kenya, but in this article, we will explore some of this government agricultural loan programmes in Kenya. However, before we go into that, let’s take a quick look at what agricultural loans are..

What are Agricultural Loans?

Agricultural loans are a type of loans designed or mapped out for farmers and Agribusinesses. The loans are used by farmers and Agribusinesses in ways like farming, farm implement purchases, crops for cultivation, and other agriculture-associated activities.

What are Government Programmes for Agricultural Loans

Government programmes for agricultural loans are a set of related measures or activities or schemes with a peculiar long-term aim of giving loans to farmers. The program is set up by the government intending to support farmers and Agribusinesses in food production.

The programme caters for all Agro-entrepreneur who are ready to work and boost the economy through mechanized agriculture.

List of Government Programmes for Agricultural Loans in Kenya

1. Agricultural Finance Corporation: Agribusiness Loan

They set this programme up to support and encourage beginners in the agricultural sector. They design it to provide capitals for Agribusiness traders and start-ups.

2. Youth Enterprise Development Fund

The Youth Enterprise Development Fund helps in the provision of mechanized tools to farmers. They have partnered with agencies like smart solutions in Africa (SSA) to support young farmers and beginners in accessing greenhouses and mechanized implements.

Their aim is to provide a shift from traditional farming methods to the modernized methods.

3. Uwezo Fund

They established it in 2013 geared towards mentoring entrepreneurs which young farmers are inclusive towards eradicating poverty. They off loans between the range of sh. 50,000 and a maximum of sh. 500,000.

It is mainly for youths, women, and people with disabilities. They are also known as Mirroring the youth fund. They also help in achieving gender equality and self-independent.

Contacts: info@uwezo.go.ke/programmes@uwezo.go.ke

4. Women’s Enterprise Fund

Women’s enterprise fund is an initiative tied to offering women entrepreneurs loans to start up something and be self independent.

They also help in marketing goods and services produced by these women entrepreneurs. It is a social motivation fund by the government to women entrepreneurs.

contacts: +254 0714606845-6

5. ICDC

The Industrial and Commercial Development Corporation is a 64-year-old initiative. Moreso, ICDC offers capital, joint-ventures, commercial loans and asset financing to entrepreneurs.

The aim of ICDC is to boost agriculture and industrial development in Kenya. They also offer medium and long-term loans.

Email: info@icdc.co.ke, customerservice@icdc.co.ke

6. Kenya Industrial Estate.

They joined Kenya Industrial Estate to the Ministry of Industrialization to boost the economy. Boosting all aspects of industry, both Agriculture is the key to reaching developed status.

Hence, Kenya industrial Estate is driven to indigenize all sectors of industry in Kenya. They provide subsidized loans and improved entrepreneurial skills to the citizens. They also offer loans of up to 14 million shillings.

Email: admin@kie.co.ke Contacts: +254 0722 297 636/+254 0733 279 861

7. Industrial Development Bank

First Industrial development banks help to establish or expand the business and younger farmers. Their loans come in different forms ranging from projects, assets to tools financing and hire purchase.

They established it in 1973 and disburses secured loans to large industrial enterprises like Agribusinesses. They are capital heavy venture initiatives.

Email: bizcare@idbkenya.com Mobile: +254 0733 221 111; 0728 970 750

Pros and cons to government programmes for agricultural loans in Kenya

Pros:

Low interest rates
Opportunity to attend seminars and lectures by the organizing officers of the programme
Enough fund to achieve your aim
Longer repayment duration
Constant advice and briefing on the current situation in agricultural sector

Cons:

Lack of access to modern instruments of risk management like insurance
When farmers don’t meet with demand, nobody cares. You must fulfill the contract agreement
Might not see a guarantor to stand for you.

How to apply on each of these government programmes agricultural loan

The steps in applying for any of these programmes are:

Visit their website online and or their physical location
Fill the application forms online or download the form and fill it.
Take the filled form to their office
Submit all necessary documents and details
E-Sign if it is available online or meet the loan officer to share necessary information on how to start your loan process.
Click enter if it is online. When it is offline, submit all necessary documents and wait for approval and disbursement.

Who is eligible for Government programmes for agricultural loans in Kenya

The programme is for all kinds of farmers such as small and marginal farmers, tenant farmers and entrepreneurs in agricultural sectors or business. Concisely they include:

Farmers who are more than 18years and above and possess a national ID and active phone number
Agribusinesses
Entrepreneurs in the agricultural sector.

General required documents for government programmes for agricultural loans

The general documents required include:

National ID
Proposed business plan
Bank account statement

Note: Each programme has peculiar additional documents they require.

How to be part of the government programmes for agricultural loans in Kenya

To be part of these programmes and also benefit from it, you need to be:

Be a farmer or a young entrepreneur in the agricultural sector.
Start a Horticultural projects
Establishment of dairy units and be ready to feed the country.
Establishment of small poultry units and need a working capital for expansion.

Note: There are other criteria included. Contact the program organizers or visit their head office to get more clarifications.

Importance of government programmes for agricultural loans in Kenya

The importance of these programmes are:

The programme plays a key catalytic role in strengthening the farm business
It helps in augmenting the productivity of scarce resources.
Bridges the gap between macro and micro agricultural systems.

Conclusion

Having food reach every nook and crannies of Kenta is the concern of government and agriculturists. Also, the government being aware of the need of agriculture amongst other sectors of the economy, they consented to improve agriculture by venturing into government programmes. These programmes give loans to both farmers and Agribusinesses.

Unsecured Loans in Kenya – Everything You Should Know

March 17, 2023 by hakeem

Unsecured loans in Kenya are loans that are granted with no collateral. If a borrower defaults on the loan, it leaves the lender with few options to get paid outside of filing a lawsuit.

In the course of this article, we will be looking more into unsecured loans and if they’re right for you.

What is an Unsecured Loan?

As stated above, an unsecured loan is a form of loan that doesn’t need collateral or a security deposit to receive. With an unsecured loan, instead of pledging assets, borrowers qualify based on their credit history and income.

Lenders do not receive the right to take physical assets if borrowers stop making payments on unsecured loans. You promise to repay, but you don’t back up that promise by pledging collateral.

An unsecured loan generally comes in three forms:

Personal loans
Student loans
Unsecured credit

How Unsecured Loans in Kenya work

When applying for an unsecured loan, most lenders check applicants’ history to see if you’ve successfully paid off loans in the past.

Based on the information in your credit report, a computer creates a credit score, which is a shortcut for evaluating your creditworthiness.

Lenders will also want to be sure that you have the financial capacity to repay any new loans. When you apply for a loan, whether secured or unsecured, lenders will ask for proof of income.

Then, evaluation is done to ascertain how much of a burden your new loan payment will be relative to your monthly income. They typically do this by calculating a debt-to-income ratio.

Documents required for obtaining an unsecured loan

The following document requirements are obtainable with most unsecured loan providers;

Office address proof for self-employed individuals
Proof of continuity of business
Processing fee cheque
Duly filled loan application form
Couple of passport-size photographs of loan borrower
Identity proof – passport, driving license, voters ID, PAN card (any one proof)
Proof of residence – utility bill, passport, etc.
Salary slips for last 3 or last 6 months

How to Apply for Unsecured Loans?

The following are ways to apply for unsecured loans;

Company website: A great percentage of lenders in the market now provide their services through their websites. You can visit the official website of the bank and apply for a loan with your credentials.

Loan aggregators: These are third-party loan aggregators that can help you find the best deals available in the market. With them, you can compare the different loan products and choose the best product that suits your specific needs.

Branch office: Lastly, you may also visit the lender’s branch office and apply for a loan in person. With the Internet, this choice of application is gradually going extinct. However, if you are not Internet savvy, you may use this option to apply for a loan.

Top banks in Kenya that offer Unsecured loans

Knowing the fact that a great percentage of the risk involved in granting an unsecured loan rest on the shoulders of the lender.

Not every credit provider out there welcomes the idea of granting unsecured loans. The following banks offer unsecured loans in Kenya;

ICICI Bank

ICICI is one of the top private banks in the country. The lender is known for providing a wide range of loan products, including personal loans.

Benefits

Loan disbursal within just 3 seconds for pre-approved customers
Flexible loan repayment tenure up to 60 months
Minimal documentation and hassle-free application process

HDFC Bank

HDFC is one of the biggest private lenders in the country. The transparent process in offering loans helps customers with easy access to unsecured and other forms of loans.

Benefits

Loan disbursal within just 10 seconds for pre-approved customers
Loan disbursal within 4 hours for other customers
Optional insurance coverage for customers
Hassle-free application process

Yes Bank

Yes Bank is also one of the top-notch credit providers with a top-notch collection of loan products in its line-up. The personal loan offered by the bank comes with flexible terms for the benefit of applicants. They include;

Benefits

Repayment tenure ranging from 12 months to 60 months
Speed and hassle-free application process
Option for transferring existing loans (with high interest) from other banks to Yes Bank

IDFC First

Capital First is one of the major financial institutions that offers loans to small and medium enterprises in Kenya. The personal loan offered by the company comes with the following terms:

Benefits

Flexible repayment tenure ranging from 1 year to 5 years
Online approval in just 2 minutes
Hassle-free loan application process

How can I ensure my Unsecured loan application is approved?

Applicants can follow the steps mentioned below to ensure that their unsecured loan applications do not get rejected:

Bills and existing loans should be paid on time to maintain a high credit score.
In case a customer has a low credit score or has never applied for any credit before, he or she can build his/her credit score or enhance it over time.
Ensure your earnings match or exceed the minimum income criteria of the concerned lender before applying for an unsecured loan.
Having a stable and regular source of income also increases the chances of an unsecured loan application getting approved.

Pros and Cons of Unsecured Loans

From the borrower’s perspective, the main advantage of an unsecured loan is the fact that it is risk free. If you receive an unsecured loan and can’t make payments, you don’t risk losing your assets. You just put your credit score at risk.

For people and businesses with unsecured loans, there is a high chance that your debt will be discharged if you file for bankruptcy.

Additionally, since unsecured loans don’t require any collateral, the lender takes on more risk. This generally translates to higher interest rates and less favorable terms.

While unsecured loans may be less risky for the borrower, it’s important to know how much more it could cost you over its duration. You may find that putting an asset down as collateral is more beneficial than the extra money you’ll pay in interest.

Conclusion

An unsecured loan can be one of the best loan options for blacklisted people. The fact that you don’t have to provide any form of collateral is definitely an advantage to the borrower. Especially in a situation the borrower has little or nothing to offer at all.

6 Online Emergency loans in Kenya (2024 Updated list)

March 1, 2023 by hakeem Leave a Comment

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

How does an online emergency loan work

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

6 different online emergency loans in Kenya 2024

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

How to apply for online emergency loans in Kenya 2024

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

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

Eligibility for the best online emergency loan in Kenya 2024

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

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

How to repay an online emergency loan in Kenya 2024

To repay an online emergency loan, follow the procedure:

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

Conclusion

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

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