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

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Ever had that drowing feeling when you realize you’re short on cash? Maybe an unexpected bill hits, or you need quick funds for your side hustle.

In Kenya, the days of scrambling for loans or facing lengthy bank queues are fading fast. Thanks to M-Shwari, with a few taps on your phone you can have easy access to credit whenever you need it.

Intrigued? You should be!

This post will be your guide to getting that needed loan with M-Shwari. We’ll delve into eligibility, explore the loan application process (it’s shockingly simple!), and shed light on any fees involved.

But wait, there’s more! We’ll also explore some smart tips to ensure you get the most from M-Shwari loans; allowing you to increase your loan limit from zero up to 1 million Ksh. So, ditch the stress and keep reading. M-Shwari might just be the financial product you’ve been waiting for!

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About M-Shwari loans

M-Shwari Loans is a service that offers fast and convenient access to interest-bearing savings accounts and mini loans for Kenyans seeking credit and financial services.

M-Shwari Loans is a financial game-changer in Kenya, offering a one-stop shop for both saving and borrowing on your mobile phone. Through M-Shwari, Kenyans can ditch the bank queues and access interest-bearing savings accounts to grow their money, while also having the option to apply for quick and convenient “mini loans” for unexpected expenses or small business ventures

Launched in 2012 through a collaboration between Safaricom, Vodafone, and the Commercial Bank of Africa (CBA), M-Shwari revolutionized the way Kenyans manage their money. Here’s a deeper dive into what makes M-Shwari loans so unique:

  • Easy Access: Everything, from applying for a loan to receiving the funds, happens directly through your phone. No filling out lengthy forms or visiting bank branches
  • Savings and Loans in One: M-Shwari isn’t just about borrowing. It’s a comprehensive financial product that also allows you to save. You can earn interest on your savings while also having access to quick and easy loans whenever you need them. It’s like having a mini-bank branch right on your phone!
  • Focus on Financial Inclusion: M-Shwari was designed specifically to address the gap in financial services for many Kenyans. Unlike traditional banks, M-Shwari uses your M-PESA activity and savings history to determine your loan eligibility. This opens doors for those who might not qualify for loans through conventional channels.
  • Rigorous Risk Assessment: Despite its accessibility, M-Shwari employs a strict assessment process to determine your loan limit. This ensures responsible borrowing and helps both you and CBA manage risk effectively. If you’ve ever wondered why your M-Shwari loan limit seems low, it likely reflects your past M-PESA usage and repayment history.

How to qualify for a M-Shwari lian

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

How to apply for M-Shwari loans on the app

  1. You can access the loan through M-Pesa menu
  2. Select loans and savings
  3. Choose M-Shwari 
  4. Select loans
  5. Request for loans
  6. Input the amount 
  7. Enter your M-Pesa pin
  8. The loan amount will be sent to your M-Pesa account plus the facility fee.

Understanding M-Shwari Loan Limit

M-Shwari loans are all about convenience, but how much you can borrow depends on your financial responsibility. Here’s what goes into determining your M-Shwari loan limit:

Building Your M-Shwari “Trust Score”:

Unlike traditional banks with lengthy applications, M-Shwari uses a unique approach. They analyze your mobile financial behavior to create a kind of “trust score”, usually referred to as credit score. This score reflects how likely you are to repay a loan responsibly. Here’s how your financial habits contribute:

  • Consistent M-PESA Usage: Regular money transfers, bill payments, and airtime purchases through M-PESA demonstrate responsible financial management and active engagement with the platform. This positively impacts your M-Shwari loan eligibility.
  • Building Your Savings Habit: Remember, M-Shwari offers both loans and savings. The more you save in your M-Shwari account, the higher your loan limit could potentially be. This demonstrates financial discipline and responsible saving habits.
  • Timely Loan Repayments: A spotless loan repayment history is crucial. Settling previous M-Shwari loans promptly builds trust and demonstrates your commitment to financial responsibility. This can lead to higher loan limits and improved access to credit in the future.
  • Maintaining an Active Line: Ensure your M-PESA line remains active. An inactive line can negatively impact your loan eligibility. Regular use of M-PESA signals your active participation in the mobile financial ecosystem.

While M-Shwari loans range from Ksh 100 to Ksh 1 million, your individual limit will likely fall somewhere in between. By consistently practicing these positive financial habits, you can work towards increasing your loan limit and unlocking greater access to credit opportunities.

Building a strong M-Shwari financial profile is a two-way street. It benefits you by allowing for larger loans, but it also helps M-Shwari manage risk and ensure responsible lending practices. So, save consistently, repay on time, and keep your M-PESA line active. By doing so, you’ll unlock the full potential of M-Shwari loans and empower yourself to achieve your financial goal.

Interest rate

The interest rate for M-Shwari is 9%. This comprises of 7.5%. loan fees and 1.5% excise duty.

Loan repayment duration 

The loan repayment duration is 30 days or one month.

How to repay M-Shwari loans

You can repay the credit from your M-Pesa account or M-Shwari account. 

Here’s how to repay your M-Shwari loan through SMS:

  1. Open your M-Shwari menu on your phone.
  2. Look for the “LOAN” option and select it.
  3. Within the “LOAN” menu, choose “Pay Loan.”
  4. Enter the exact amount you want to repay towards your loan.
  5. Key in your M-Shwari PIN.
  6. Carefully review the confirmation message on your screen. This will typically show something like “Pay Loan Kshs 2,000” (replace 2,000 with your repayment amount).
  7. If the details are correct, confirm the payment by pressing “OK”.

Conclusion 

M-Shwari loan is for everyone who believes in banking made easy. No form to fill and no M-Shwari branch to visit. Just one simple process of downloading the app and signing up on your phone. The loan obtained from the platform can be for emergencies, or financing a project or enterprise.

How To Increase M-shwari Loan Limit From Zero 

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M-Shwari is a lending platform in Kenya that combines savings and loan features to offer credit solutions directly from a mobile device.

It is available to registered Safaricom subscribers with active M-pesa lines.

With its partnership with Safaricom, M-Shwari allows users to save, earn interest, and access loans instantly, making financial services more accessible to Kenyans.

A good loan limit on M-Shwari platform is important as it determines the amount of money one can borrow, directly showing that you have previously made repayments on time and transacted with M-pesa services efficiently. 

However, starting with a zero loan limit can be frustrating or a major setback, especially in times of urgent need. This article aims to guide those facing a zero M-Shwari loan limit on how to enhance their borrowing capacity. 

M-shwari Loan Limit

M-shwari loan limit is the highest loan amount you can get from the platform. You can access as low as Ksh. 100 and up to Ksh 50,000.

M-Shwari platform determines loan limits for its users based on several key factors to evaluate their creditworthiness and ensure responsible lending, and frequent M-Pesa transaction history. This entails the consistent use of M-Pesa services for transactions such as sending and receiving money, paying bills, and buying airtime. These activities give M-Shwari platform insights into your financial activity and your reliability.

Another factor is the timely repayment of previous loans with M-Shwari or other lending platforms monitored by credit reference bureaus. Late payments impact negatively on your loan limit.

Other factors like your savings behavior which demonstrates financial discipline and stability, overall financial health, and your blacklist status also influence your limits.

By understanding and optimizing these factors, you can work towards increasing your M-Shwari loan limits.

How to Check Your M-shwari Loan Limit

To check your M-shwari loan limit, follow the steps below:

  1. Locate your “M-Pesa” menu.
  2. Choose “Loans and Savings”
  3. Select “M-Shwari” 
  4. Choose “Loans” 
  5. Then, click on where you have “Check limit” and the platform will display your loan limit immediately.

Why Your M-Shwari Loan Limits is Zero

Your M-Shwari loan limit might be zero due to factors like;

  • Lack of sufficient and consistent transaction history with M-Pesa services.
  • Poor repayment history with M-Shwari or other financial lenders in Kenya
  • Minimal or no savings in your M-Shwari account
  • Not using M-Shwari’s services for up to a period of 6 months.
  • Being blacklisted for loan default.

How to Unlock M-shwari Loan Limit

To unlock or increase your M-Shwari loan limit, consider these factors:

  • Increase M-Pesa Activity: We recommend that you regularly use M-Pesa for up to 6 months for transactions like buying and sending airtime and paying bills. Actively sending and receiving money through M-Pesa will help you establish a solid transaction history.
  • Maintain Positive Repayment Behavior: Ensure to always repay your M-Shwari loans on time and in full. Don’t ever delay, see it as an urgent obligation. Late repayments negatively impact your creditworthiness and can decrease your loan limit on their app.
  • Save Consistently with M-Shwari: Show M-shwari your responsible financial management by regularly saving money in your account. A high saving amount and consistent savings record can positively influence your loan limit by demonstrating financial stability.

How to Restore M-shwari Loan Limits

To restore your M-Shwari loan limits, do the following things below:

  • Ensure you have used your line for up to six months
  • Deposit high amounts and save consistently on M-shwari platform
  • Send and receive money more on M-pesa as much as you can to keep it running and active.
  • Use other M-shwari services to keep your line active by topping up data and airtime via Mpesa.
  • To build a higher loan limit, send large amounts on your Mpesa regularly.
  • Ensure you don’t have an outstanding loan both with M-Shwari or elsewhere. If you do, pay off all your outstanding loans.
  • Make sure your name is not blacklisted by CRB.

How to Check your M-Shwari Loan Limits

Follow the steps below to check your M-shwari loan limits:

  • Locate your “M-Pesa” menu.
  • Choose “Loans and Savings”
  • Select “M-Shwari”
  • Choose “Loans”
  • Then, click on where you have “Check limit” and the platform will display your loan limit immediately.

Conclusion

In conclusion, increasing your M-Shwari loan limit from zero entails working on your M-Pesa activity, maintaining a positive loan repayment history, and consistently saving a good amount with M-Shwari. 

While these actions can improve your chances, M-Shwari doesn’t guarantee you a higher limit when you achieve some of them. It’s important to manage your finances wisely, make use of M-Shwari loans responsibly, and remember that consistent, positive credit behavior is key to your financial life.

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. 

How do I apply for M-Pesa loans- All you need to know

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The process of applying for M-Pesa loans is simple. How do I apply for M-Pesa loans will be answered in this article.  M-Pesa Kenya is a mobile money service that you can use to store, send, receive, and repay bills.

There are a variety of M-Pesa applications  that offer loans directly to your M-Pesa account. It is quickly taking over and  dominating the market. We will discuss how to apply for M-Pesa loans in Kenya.

M-Pesa loans

M-Pes loans are offered through the M-Pesa app. They are loans transferred directly to your M-Pesa account. M-Pesa is the most affordable way to handle money, transfer and get loans. Over millions of Kenyans enjoy the loan. It is instant, easy to apply and comes with wonderful features. There are other additional features you can enjoy from the M-Pesa platform.

13 M-Pesa loans apps in Kenya

  1. KCB M-Pesa
  2. M-Shwari 
  3. Tala
  4. Branch
  5. Timiza
  6. Haraka
  7. Zenka loan app
  8. Ipesa loan app
  9. Saida loan app
  10. Shika loan app
  11. Berry simple swift loan app
  12. Pezesha loan app
  13. Okolea loan app

How do I apply for M-Pesa loan 

To apply for M-Pesa loans in Kenya, follow the step below:

  1. Got to M-Pesa menu
  2. Choose loans and saving
  3. Select the M-Pesa loan app (like M-Shwari, KCB etc.)
  4. Request for loan
  5. Input amount
  6. Type in the M-Pesa pin and submit
  7. Loan amount will be sent to your M-Pesa account 

How do I qualify for M-Pesa loans

In order to qualify for M-Pesa loans, be sure to:

  1. Have M-Pesa account for at least 6 months
  2. Be a Safaricom user
  3. Use other Safaricom services such as voice, data e.t.c

What is the maximum amount M-Pesa can hold

Maximum balance M-Pesa can hold is Ksh. 300,000

5 M-Pesa application transactions 

  1. Paying bills
  2. Buying airtime
  3. Buying goods
  4. Sending money
  5. Saving on the platform 

Conclusion 

Most Kenyans depend on short-term loans to solve their needs. Additionally, they appreciate instant loans. These are all features of M-Pesa loans. You are responsible for choosing the best M-Pesa app with the best repayment plan and interest rate. Do your research smartly. 

You can also check out apps like dave and Diamond Trust Bank options.

Business startup loans in Kenya – Meaning and how to apply

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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.

business-startup-loans-in-kenya

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:

  1. Quick loan application procedure
  2. Easier to qualify
  3. Easier to meet up with the requirements
  4. 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:

  1. Avail yourself, study and compare lenders
  2. Visit the financial institution or lender’s website
  3. Find out the eligibility and requirements
  4. Know the documents to submit and get them ready
  5. Fill the application form either online or offline
  6. Visit the lenders branch and submit the application 
  7. Attach your documents
  8. 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:

  1. Mobile lending
  2. Micro lenders and Credit union
  3. banks

Mobile lending business startup loans in Kenya

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

  1. M-shawari
  2. Tala
  3. Branch
  4. KCB M-pesa
  5. Grofin
  6. Equitel
  7. 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:

  1. M-co-op cash
  2. Bitband- peer-to-peer lending
  3. Kiva- Peer to peer lending

Banks for business startup loans in Kenya

Banks for business startup loans are:

  1. Equity groups
  2. Chase banks
  3. Family bank
  4. Kenya commercial banks
  5. Standard chartered banks
  6. Barclays banks
  7. 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:

  1. National ID
  2. Proof of address and recent passport
  3. 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:

  1. Open you M-Pesa account 
  2. Choose paybill
  3. Enter the business number of the loan platform 
  4. Input the amount you want to repay
  5. Enter your M-Pesa pin
  6. 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. 

6 Online Emergency loans in Kenya (2024 Updated list)

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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:

  1. KCB M-Pesa loans 
  2. M-Shwari online loans
  3. Utunzi online loan
  4. Tala loans
  5. Branch loans 
  6. Timiza loans

How to apply for online emergency loans in Kenya 2024

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

  1. Download the app from the Google Play store 
  2. Install and register your details on the ap
  3. Submit all necessary documents. Also, do your electronic signing if requested.
  4. Update all personal information and add your bank account details and phone number 
  5. Apply for the loan 
  6. Wait for your loan approval
  7. 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:

  1. Be 18 years and above
  2. Possess a national identity to prove your identity 
  3. Own a digital gadget that can connect to the internet.  Be it a mobile phone, tablet or personal computer. 
  4. Have a valid phone number 
  5. Operate a workable email address 
  6. 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:

  1. Login into the online app
  2. Click on “repay loans”
  3. Input the loan amount
  4. Select the option for repayments 
  5. Tap the repayment and have your loan repaid
  6. 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. 

Loans in Kenya Without Security Explained

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It is common in Kenya to get loans without security. It comes with minimal requirements and funds are received instantly. Loans in Kenya without security are easy to access and qualify for.

The purpose of this article is to direct you on how to apply, some platforms to apply from and how to qualify. 

loans-without-security-in-kenya

Facts About Loans in Kenya Without Security 

You can easily secure loans in Kenya without security but one thing is certain, it attracts higher interest rates. Unlike secured loans that come with lower interest rates.

Loans in Kenya without security are loans you apply without presenting any collateral or instrument as backup for the loan. 

In addition, you may not get a higher amount by most lenders due to the involved risk. Some lenders use the collateral as backup in case of loan default.

Other than that, loans without security are simple and quick to get.

How to Apply for Loans in Kenya Without Security 

  1.  Visit lenders online or offline and check their features
  2. If you wish to use a mobile app, download the app from Google play store. 
  3. Register online by filling the form or create an account on the app
  4. Upload all necessary documents of requested for
  5. Apply for the loan based on the loan limit
  6. Input your account number 
  7. Wait for loan approval 
  8. Once approved, get your loan

Lists of Loans in Kenya Without Security 

Generally in Kenya, there are various credit platforms and financial institutions that gives funds without security and they are:

  1. M-Pesa loan apps like: Tala loan app, Branch loan app, Zenka loan app, KCB M-Pesa loan app, Mshwari loan app, etc
  2. Banks like: Equity bank, NIC Bank, National bank online loans, KCB unsecured loans, etc.
  3. International loan platform like: International finance corporation, etc
  4. SACCOs
  5. Credit unions 
  6. Online emergency loan lenders

What Qualify Eligibility For Loans in Kenya Without Security 

  1. Credit rating and worthiness 
  2. Financial stability 
  3. Age limit
  4. Have evidence of proof of age
  5. National ID to prove citizenship 

How is the Repayment Terms like? 

  1. Some ranges from 30days to 60days
  2. Attracts an interest rate of 6% to 15% depending on the lender

Categories of Loans in Kenya Without Security 

  1. Personal loans
  2. Business loans
  3. Emergency loans
  4. Salary advance 

Conclusion 

This article shows the various alternatives you can choose from when looking for loans without security. The first amongst them is mobile loans.

Mobile loans are easy to access and just one tap on the phone, you get your loans instantly. Your other alternatives include private lenders, international financial firms, online loans, SACCOs, etc. 

Compare and evaluate the above mentioned in this article. We shall be updating this article as soon as we come across other viable credit platforms in Kenya without security. 

Online Installment loans in Kenya

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Online Installment loans in Kenya are simple and stress-free. With some lenders, you can apply online and have a decision fast. If approved, you could get money deposited in your bank account or M-Pesa account as soon as the next business day. So why wait? Get smarter about your money today.

What are installment loans

Online installment loans are designed to help when you need a short-term loan fast and have bad credit or even no credit. Consider an online installment loan if you are short on money, don’t have other credit options and need help with expenses. 

13 Lists of online Installment loans in Kenya

The following list of some online installment loans in Kenya:

  1. Branch loan Kenya
  2. M-Shwari loans
  3. Shika loan
  4. Zenka loans
  5. Utunzi loans
  6. KCB loans
  7. Okash
  8. Timiza
  9. Tala loans
  10. Haraka
  11. Opesa loans
  12. Saida loans
  13. Izwe loans

Pros and Cons

Pros

  1. High maximum loan amount of up to Ksh. 10,000
  2. Most times no origination fees
  3. Some variety of discounts and bonuses for members who pay early

Cons

  1. High minimum credit score requirement of up to 650
  2. Very high interest rate 

Online Installment Loans Minimum amount

Get up to Ksh. 5000 in an online installment loan platform. The more you take the loan, the more your limit grows. Instantly sign up through their website and get approved in minutes.

Online Installment Loans Interest Rate

In Kenya, online installment loan lenders charge between 8% to 15%.

How to qualify for an online installment loans

To qualify for an online installment loan, you need to:

  1. Be 18 years and above
  2. Phone number
  3. Allow the app to read your phone data
  4. Provide an account number or M-Pesa account
  5. Provide other personal information
  6. Your national ID

How to apply for an Online Installment Loans

Get pre-qualified for a loan and then go ahead to apply for the loan by:

  1. Visiting the lenders website or downloading their app
  2. Signing up online or on the app
  3. Submitting all personal information requested for
  4. Requesting for the loan and inputting your phone number
  5. Wait for loan approval
  6. Get your loan once approved

Online installment loans for bad credit

Lenders offer online installment loans for people with bad credit. With so many alternative credit checks used by lenders, a variety of sources  are deployed to look at parts of your financial history instead of just your credit score. 

So even if you have bad or no credit, you may be able to find a loan option that works for you

When do People tend to Borrow installment Loans

People ‌borrow basically to sort out need but there are other options why people borrow installment loan in Kenya and it include:

  1. Emergency need
  2. Immediate small fees like child’s school fees
  3. To repair a leaking or small damaged path Ina home
  4. Repairing and servicing a vehicle
  5. Inter county travel in Kenya
  6. Condolences
  7. Festive expenses

Borrowing online Installment loans for Emergencies

Many prefer loans from online installment lenders in Kenya to address emergency needs. Typically, when in an emergency, one needs one or more of these qualities to be true in a loan:

  1. Easy to apply
  2. Accessible from anywhere ‌on the internet
  3. No requirement of physical presence at any location in Kenya
  4. High chance of being approved
  5. Quick approval
  6. Quick disbursal into your account

When to get an online installment Loans once applied

Receive your loan amount on the app in a moment or as few as 24 hours and the interest rate.

Conclusion

There are many online loans in Kenya and we mentioned most of them in this article. They deposit funds into your bank account or M-Pesa account within a few minutes of approval. 

Simple online installment loans take less than 5 minutes to complete. Online installment loan application is safe, secure and confidential.

How to get soft loans in Kenya

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Individuals, firms and developing nations need money to survive, thrive and expand in all aspects of their endeavours. Bringing it home to Kenya, fund is the highest means of survival. This is where getting soft loans in Kenya comes in.

However, for whatever reasons we may need cash for, it is advisable to look for the lowest loan rate and favourable terms loans. This helps you save up from the excess amount you would have repaid normally and have an extended grace period for repayment. Therefore, simply feel free to go through this article and learn how to get soft loans in Kenya.

What are soft loans

Soft loans are loans with little or no interest rate. Often it is below the market rate of interest. It also has lenient terms and conditions, grace extension periods where you can only pay for the interest rate and service charge. Typically, they offer a longer repayment schedule unlike other loan platforms.

Moreover, multinational development banks or federal government finance firms. Such loans are also called “Soft financing” or “Concessional funding”. Developing countries that could not borrow at the market rate goes for soft loans.

How to get soft loans in Kenya

In getting soft loans in Kenya, there are lenders to turn to. We have researched and compiled a list of some lenders that provide soft loans in Kenya.

S/noLendersInterest Rates
1mKey loans9%
2Branch loans6% to 16%
3KCB M-Pesa4% to 15%
4M-shwari7.5% for 30 days
5Mco-op cash loans1.166% to 3.498%
6Eazzy loans2% to 10% for one month to 12 month
7Timiza6.17% for 30days
8Whizz7.725% for 30days
9Nic mobile banking1.13%

You can also check out how to apply for a loan in Kenya

How soft loans work

Soft loans are offered to support growing individuals or business owners to thrive, survive and expand. It helps them narrow their resources down and handle tremendous tasks.

Developing countries also go for this type of loan. It works in the sense that a tie is formed between the lender and the borrower. Especially if the borrower (either individual or developing country) has a resource or product that greatly interests the lender.

Pros and cons

Pros:

Progress and boost for business 

Along with serving as a great value to the lender tieing the lender and the borrower together, soft loans offer business opportunities. Many firms who receive such loans do well to manage their funds and put the remaining to other aspects of their business. 

Cons:

Late returns occurring 

The time to repay the soft loan might take too long and the opportunity for dialogue might not be there again. The tie and the relationship often lead to late returns. 

Default or repayment problem arising

There is the issue of the borrower defaulting, despite the soft loan’s favourable terms and conditions. Individuals’ or firms may be tempted to take more cash than they can afford. Such a situation can lead to repayment problems.

How to apply for soft loans in Kenya

To apply for soft loans in Kenya, follow the steps below:

  1. Visit the lender’s website to apply or download the app on google play store
  2. Install the application and register on the app
  3. Allow the app to access your phone’s data
  4. Apply for the loan limit you qualify for and cross check all details
  5. Wait for loan approval 
  6. Get your loan once approved

You can also read how to apply for tala loans in Kenya

Conclusion

It is wise to choose the right soft loan for your specific needs. Therefore, it is important to pay keen attention to the lender’s interest rates, loan duration and additional and extension fees before committing. Whether as an individual, firm or developing country, you can easily get that soft loan from the methods listed in this article. 

Top 10 Instant Loan Apps in Kenya

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Instant loan apps in Kenya have emerged as a game-changer for borrowers seeking quick and convenient access to loans. With your smartphone and the internet, you can download these instant loan apps in Kenya from the Google Play Store or Apple Store.

They offer a lifeline in times of emergencies, bypassing the traditional, often cumbersome, loan application processes of conventional banks. 

This article explores the top 10 instant loan apps in Kenya, renowned for their quick processing times, good features, easy eligibility, low rates, good reviews, and user-friendly interfaces.

Top 10 Loan Apps in Kenya

Name of Loan AppsFeaturesEligibility criteriaInterest ratesUser reviews and ratings
Saida Loan AppEasy to access
Minimum of ksh 600 to ksh. 100000
Repayment period of 30 days.
Requires a good credit history.
Easy application.		From 18 years to 65 years as a Valid M-pesa number
Has a valid national ID
Good credit history 		7.5% to 10%More than 500k downloads 
More than 20,182 reviews
Over 4.0/5 rating
Requires
5.9 memory Capacity 
Shika Loan App Easy to access
Minimum of ksh 500 to ksh. 20000
Repayment period of 30 days.
Charges late repayment fees
Requires a good credit history.
Easy application.		From 18 years to 65 years
Has a Valid M-pesa number
Have a good M-Pesa history.
Has a valid national ID
Good credit history		15%More than five million downloads 
More than 50,110 reviews
Over 4.5/5 rating
Opesa Loan AppEasy to access
Minimum of ksh 500 to ksh. 3000
Repayment period of 30 days.
Requires a good credit history.
Easy application.		From 18 years to 65 years
Has a Valid M-pesa number
Has a valid national ID
Good credit history		The interest rate depends on the loan amount.The interest rate depends on Loan amount.
Haraka Loan AppEasy to access
Minimum of ksh 500 to ksh. 5000
Repayment period of 30 days.
Requires a good credit history.
Easy application.		From 18 years to 60 years
Has a Valid M-pesa number.
Have a good M-Pesa history.
Has a valid national ID
Good credit history		23%More than one million downloads 
More than 10,000 reviews
Over 4.0/5 rating
Timiza Loan App Easy to access
Minimum of ksh 500 to ksh. 150000
Repayment period of 30 days.
Requires a good credit history.
Easy application.		From 18 years to 65 years
Has a Valid M-pesa number
Has a valid National ID
Good credit history		6.17%More than one million downloads 
More than 5,00 reviews
Over 4.0/5 rating
Branch Loan AppEasy to access
Minimum of ksh 350 to ksh. 50000
Repayment period of 30 days.
Requires a good credit history.
Easy application.		From 18 years to 65 years
Need a Facebook account 
Has a Valid Safaricom number
Has a valid National ID
Good credit history		Interest rates depends on the amount of Loan appliedMore than ten million downloads 
More than 400,000 reviews
Over 4.5/5 rating
Tala Loan App Easy to access
Minimum of ksh 500 to ksh. 50000
Repayment period of 7 days and 30 days.
Repay using a paybill number
Requires a good credit history.
Easy application.		From 18 years to 65 years
Has a Valid M-pesa number
Has a valid national ID
Good credit history		15%Interest rates depend on the amount of Loan applied
M-shwari Loan AppEasy access to funds.
Must be an active user of M-pesa for 6 months.
Read data on your phone after installation.
Minimum of ksh 500 to ksh.100000
Repayment period of 30 days.
Requires a good credit history.
Easy application.		From 18 years to 60 years
Has a Valid Safaricom number
Has a valid national ID
Good credit history		7.5%More than one million downloads 
More than 50,182 reviews
Over 4.6/5 rating
KCB M-Pesa Loan AppEasy to access
Minimum of ksh 50 to ksh.1000000
More Loan limits open as you borrow and repay on time.
Repayment period of 30 days.
Requires a good credit history.
Easy application.		From 18 years to 60 years
Has a Valid Safaricom number
Has a valid national ID
Good credit history		3.6%More than one million downloads 
More than 40,182 reviews
Over 4.5/5 rating
iPesa Loan AppEasy to access
Minimum of ksh 500 to ksh. 50000
Repayment period of 7 days and 30 days.
Repay using a pay bill number
Requires a good credit history.
Easy application.		From 18 years to 65 years
Has a Valid M-pesa number
Has a valid national ID
Good credit history		The interest rate depends on the Loan amount.6% and a service fee of 5% to 10%.

Factors to Consider When Choosing a Loan App

Before choosing any loan app in Kenya, check out for these factors,

  • Interest rate
  • Loan limits
  • Approval speed/time
  • Repayments terms 
  • Penalty fees
  • Additional fees or charges 
  • Customer reviews
  • Privacy and security
  • Regulations

Tips For Responsible Borrowing

The eight major tips for responsible borrowing are:

  1. Borrow only what you need
  2. Consider your income
  3. Understand the loan terms
  4. Avoid multiple loans
  5. Plan Repayments
  6. Borrow only during emergencies 
  7. Read reviews to see what you are going into
  8. Plan to repay on time.

Conclusion 

The digital revolution in Kenya’s financial market has made accessing loans faster and more convenient than ever before through instant loan apps. 

The top 10 instant loan apps in Kenya, highlighted in this article are the best, offering financial solutions tailored to meet the immediate needs of their customers. 

While these instant loan apps in Kenya provide quick relief in times of emergencies, borrowers are encouraged to use them wisely, considering the terms and interest rates to ensure they maintain healthy financial habits.