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Best Logbook Loans in Kenya

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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 

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.

  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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

  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.

  1. Filled application form
  2. Bank statements for a period of 6 months
  3. Two copies of your passport photograph
  4. Original three-month payslips
  5. Copy of your national ID or passport
  6. Your  KRA PIN
  7. Proof of your place of residence 
  8. Copies of logbooks of your vehicle or for other motor vehicles (Used vehicles).
  9. 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

  1. Pro-forma invoice from the dealer/ seller.
  2. Present the recent AA/regent automobile valuers and assessors valuation (for used vehicles).
  3. Proof of your source of income.
  4. Introduction/Confirmation/Appointment letter from your present employer
  5. Carefully signed authorization forms. 
  6. 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

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

A Tuk tuk

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:

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:

  1. Mogo Tuk-tuk loan
  2. KCB Bank Tuk-tuk loan
  3. Watu Africa Tuk-tuk loan
  4. 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

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

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

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

Cheapest Bank loans in Kenya

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

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

1. First Community Bank (FCB)

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

2. Ecobank Kenya

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

3. HF Bank

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

4. Access Bank Kenya

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

Other Options to Consider

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

  • Consolidated Bank
  • Habib Bank
  • DTB Bank

International Players:

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

Traditional Powerhouses:

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

Common Types of Cheap Loans Offered by Banks

  1. Secured loans
  2. Salary advance

Factors That Cause a Change in Interest Rate

The factors that cause changes in interest rates include:

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

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

How Commercial Banks Choose Their Interest Rates

Commercial banks determine interest rates using several factors such as:

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

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

Conclusion

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

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

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

Mortgage loans in Kenya – What you should know

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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. 

mortgage-loans-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:

  1. Fixed-rate mortgage and
  2. 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:

  1. Appraisal and approval. Knowing if you qualify for the mortgage loan.
  2. Property search and viewing. 
  3. Loan processing and provision of required documents needed.
  4. Offer/issuance of offer letter. 
  5. Perfection of instruction and acquisition of property used as collateral 
  6. 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:

  1. Copy of the title, which has a minimum free lease duration of 45years.
  2. Offer letter from the seller for outright purchases
  3. Standing order proving direct debit or employer’s irrevocable check-out letter
  4. For spouse applying together, provision of a copy of marriage certificate 
  5. Valuation reports which often attract a valuation fee
  6. Evidence of rents and rates. That is receipts showing latest payment to the city council
  7. Life insurance quotation and medical checkup for application above 20m
  8. 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:

  1. Total income 
  2. Sum amount of your personal expenses
  3. Credit score
  4. Whether you possess a solid source of income
  5. The duration of the contract
  6. Details of the property
  7. Age of the borrower 

Some mortgage providers in Kenya and their interest rates 

Lists of mortgage providers in Kenya range from:

  1. Housing finance group: They have a mortgage interest rate of 13%
  2. Standard Chartered Bank Kenya with an interest rate of 12.2%
  3. Consolidated bank has 15.1% as their mortgage interest rate
  4. Barclays bank Kenya- 14.4%
  5. Kenya commercial bank – 13.3%
  6. Citibank Kenya – 12.5%
  7. 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:

  1. The main mortgage interest rate
  2. Negotiation fee, which is often 2.5%
  3. Stamp duty
  4. Commitment fees
  5. Legal fees
  6. Valuation fees
  7. 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

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

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

quick-online-loan

What are Online Loans?

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

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

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

Top 6 Online Loans With Instant Approval

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

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

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

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

What are the Requirements for Getting Online Loans in Kenya?

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

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

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

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

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

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

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

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

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

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

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

How Fast are Funds Released 

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

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

Do’s and Don’ts of Getting Online Loans

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

Do: Check Your Credit Report

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

Do: Consider the Risks if you Have Bad Credit

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

Do: Read the Fine Print

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

Don’ts

Don’t: Accept the First Loan Offered to You

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

Don’t: Take out the Maximum Loan Possible

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

Don’t: Skimp on Payments

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

Conclusion 

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

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

Commercial Banks in Kenya that give loans without collateral

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

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

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

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

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

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

Banks in Kenya that give loans without collateral 

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

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

How to apply for bank loans without collateral. 

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

What determines your eligibility for bank loans without collateral 

Your eligibility for bank loans without collateral are:

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

Requirements for banks’ loans without collateral 

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

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

Types of loans you can get from a bank without collateral 

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

  1. Personal loans 
  2. Unsecured loans 

Other loans you can get from the bank without collateral 

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

Conclusion 

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

How To Apply For Quick Loans in Cooperative Bank Kenya

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

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

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

About Co-operative bank loan

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

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

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

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

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

How to apply for co-operative bank Kenya loan 

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

Loans offered by the Cooperative Bank of Kenya

Loans offered by co-operative bank of Kenya are:

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

Personal loans

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

Enhanced Benefits:

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

Features:

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

Business/Bizwise SME loan

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

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

Requirements:

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

Co-op Bank Flexi Loan (Salary Advance)

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

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

Insurance Finance Loan

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

Benefits:

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

How to apply for Co-operative insurance Finance loan

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

The Co-op mobile banking App

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

Features of the app

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

Co-operative bank loan Calculator 

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

How to repay your co-operative bank loan

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

Or

By visiting the bank and asking for a different option. 

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

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

Conclusion

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

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

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

Bank of Africa Kenya loans- all you need to know

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Banks are organized financial institutions that save us in times of difficulties. They provide credit facilities to solve different needs. Bank of Africa Kenya loans are not left off the list. They are a structured lending platform that provides different loans to individuals in Kenya.

Let us discuss their categories of loans, the account needed for each loan and how to contact them.

bank-of-africa-loans

About Bank of Africa Kenya 

Bank of Africa Kenya limited (BOA-Kenya) is a commercial bank providing banking services to corporate and individuals. Small and medium enterprises are left behind. They also cater for retail clientele. The bank began activities officially in Kenya in July 2004 and currently has recorded so many achievements. 

They acquired Kenyan branch of Credit Agricole Indosuez, a large international French bank. The French bank has operated in the country for over 20 years. The bank has a wide network of 27 branches country wide and a business center in Nairobi, Kenya.

What you need to know about Bank of Africa Kenya loans 

Basically Bank of Africa Kenya limited offers personal and business loans. Their branch in Kenya offers full services to SMEs and operates in real time. The loans gotten helps their customers to seamlessly and expediently transact business.

Bank of Africa Kenya loans

The different categories of loans offered by Bank of Africa Kenya limited are:

  1. Personal loans (which includes Salary advance)
  2. Asset finance 
  3. Mortgage products 

Personal loans

Their personal loans amount is Ksh 50,000 to Ksh 2,000,000 extended to salaried individuals with minimum net salary of Ksh 25,000.

Eligibility:

  1. Be in a continuous employment for over 6 months
  2. Have a minimum net salary of Ksh 25,000
  3. Qualifying age limit is 55 years
  4. Be ready to pay a processing fee of 3%
  5. Provide a good Credit Reference Bureau report

Benefits:

  1. Comes with a competitive interest rates
  2. Flexible interest installment plan
  3. Can apply for a maximum loan amount Ksh 2,000,000
  4. Receive a minimum loan amount of Ksh 50,000
  5. Fast to processing & disbursement to your personal account or salary account within 1 week

Features:

  1. Enjoy a loan duration of a minimum of 12 months to a maximum of 48 months
  2. Enjoy a response time of 48 hours
  3. Get amount ranging from Ksh 2,000,000 to Ksh 50,000

Requirements:

  1. Submit a completed Bank of Africa Personal Loan application form
  2. Letter of undertaking from employer confirming further payment 
  3. Copy of a valid ID
  4. A PIN certificate
  5. Printed original copies of the preceding 3 months’ payslips
  6. For non-BOA customers, copies of bank statements for 6 months

Asset finance 

Bank of Africa Kenya limited, designed asset finance to enable individuals and businesses acquire durable assets. The asset to be financed will be used to grow the capacity of the business. It would be also used to improve the level of service delivery of an existing enterprise.

Target Audience:

  1. Individuals
  2. Entrepreneurs
  3. Limited companies
  4. Law agencies
  5. Non–profit organizations

Mortgage finance 

Bank of Africa Kenya Limited provides a comprehensive mortgage finance solution. This focuses on providing personal and unique services. They achieve this by enabling their customers to buy, build or improve their own properties or homes.

Mortgage Products Offered:

  1. Home improvement
  2. Property acquisition 
  3. Equity release 
  4. Construction

Requirements:

  1. A properly completed and signed application form.
  2. Provide a sale agreement/offer letter.
  3. Identification card
  4. Passport 
  5. Registration documents for a business.
  6. Copies of payslips.
  7. Print bank statements for the last six months.
  8. Copy of the title of the asset that is serving as a collateral.
  9. A valuation report 
  10. A well-drafted letter of introduction and undertaking from an employer for employed persons.
  11. Open a Bank of Africa Kenya limited Current account.

Benefits:

  1. Own occupation
  2. Gain tax benefit through mortgage relief.
  3. Free financial advice on mortgage products.
  4. Personalized customer service.
  5. Flexible terms of repayment
  6. Begins to save on rent
  7. Receive capital gains from property appreciation.

Different accounts operated by Bank of Africa Kenya for loan disbursement 

  1. Personal account
  2. Current account 
  3. Deposit account
  4. Salary account 
  5. Savings account 

How to contact Bank of Africa Kenya loans

Visit BOA House, Karuna Close, Off Waiyaki Way, Westlands, Nairobi.

You can call them via call at: 0703058000/ 0203275000. If you choose to email them, their email address is yoursay@boakenya.com 

Conclusion 

Bank of Africa Kenya limited has the vision to be the preferred bank to the chosen market. They offer personal, salary advance, mortgages and asset finance to their customers. 

Furthermore, their mission is also to serve their customers with efficiency and courtesy. To contribute to the development of all their stakeholders and lots more. Try Bank of Africa Kenya loans today and enjoy their great features. 

Unsecured Loans in Kenya – Everything You Should Know

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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?

unsecured-loans-in-kenya

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:

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.

UMBA Loans: Everything You Need To know

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Umba loan is one of the most popular and trusted mobile loan services in the vast mobile money lenders market in Kenya. Umba app allows you to make quick money transfers while saving up to 70% of your traditional banking fees. With just two clicks, you can make instant loan application.

Intriguing, right? It’s like having everything you need in your pocket. Banking has never been easier. Even as a first time user, it gives you 1% monthly interest rate. We bet you can’t wait to start using the Umba loan app. In this post, we will share with you simple steps on how you can download and apply for an Umba loan.

Tag along with us.

What is Umba?

Umba is a digital bank and a loan platform in the financial market currently operating in Kenya. They offer digital financial services to the citizens. Its mobile app has a simple user interface, fascinating product features and fast responsive performance. This is special unlike the big barriers found among other loan apps.

How to get a loan from Umba

Getting a loan from Umba is straightforward. To get a loan from Umba, you must first:

  1. Download the Umba app from Google play store 
  2. Create an account on the app
  3. Apply for the loan
  4. Receive your loan

What you need to apply for Umba loans

The requirements for accessing loans on the Umba mobile app is not as rigorous as the terms got in traditional banks. All you need is to download the Umba loan app on Google Play Store, which is fast. To access the app after download, you must:

a. Create an account by filling all the required details.

b. Provide a phone number you can use to receive funds and notifications.

c. Provide a valid identification card to prove your age and identity. 

d. Update your personal information regularly.

How to Apply for Umba Loan

Applying for an Umba loan is quite simple and easy. 

First, download the app and complete the onboarding process following the instructions stated above. Then, log into the app and click on any of the services you want. There are different short-term and long-term loans suitable for your budget. You can apply for a money loan, bill pay loan or airtime loan. 

As a first time user, you are eligible to acquire an Umba loan ranging from 250 to 7000o Kenyan Shillings with a 1% monthly interest rate. It’s best to start with small amounts and build up your credit profile as you use the app. Once your loan is approved, Umba will deposit the money into your M-Pesa wallet.

UMBA Loan App Review

Let’s give you a cursory glance of the app to help you understand its remarkable features.

1. User Interface

Umba has a nice and simple design that helps you navigate the app with ease. The light blue and white colour is eye-catching and fun to use. The best part is you don’t have to worry about unnecessary adverts popping up while using the app. 

2. Product Features

The Umba mobile app has many fascinating features that can keep your eyes glued to the screen all day. The file size is just 6.10Mb, and you can download it for free. The functionality of each feature is superb, and you can even fill a quick 30 seconds review if you want an upgrade. 

3. App Performance

Umba loan app has a fast response time which makes it easy to process your requests. The speed and stability of the app when in use is excellent. Umba uses bank-grade security to protect your personal information. All data is encrypted and protected 

Umba interest rate

The interest rate for Umba is between 1% to 15% per month.

Umba repayment period 

Umba loans have a repayment duration ranging from 1 month and one year. 

Minimum and maximum amount 

The loan amount ranges between Kes 250 to Kes 70,000. As you repay your loan, your loan limit increases.

Umba eligible countries 

The loan app is available to individuals in different counties in Kenya. Also available to people in Nigeria and Uganda.

How to repay your UMBA loan

Paying back your Umba loan on time increases your chances of accessing large loan amounts. Umba gives you a repayment period of 28 days, and you can pay back in four instalments. Failure to pay back on the due date attracts extra charges and Umba will list your account with the Credit Reference Bureau (CRB).

To repay your Umba loan, log into your mobile app account:

1. Click on your M-Pesa menu and select the ‘Lipa na Mpesa’ icon.

2. Click on the ‘pay bill’ option.

3. Then, type in the Umba loan pay bill number: 264130

4. Next, select the ‘account number option

5. Fill your account number and the loan amount you want to repay.

6. Finally, cross-check your information and submit your payment.

How to contact Umba customer care

In case of any issues encountered or more clarifications, contact Umba customer care through:

Email to suport@umba.com

Website: umba.com

Conclusion

This app is not just a mobile money lender. Umba offers full digital banking services. With your Umba app, you can open a bank account online and run your regular banking services. If you have any challenges when applying or repaying your loan, you can contact the Umba team.