USSD ( Unstructured Supplementary Service Data) is a means of accessing services offline.

In Kenya today, it is possible to access loans using USSD codes.

In this article, we will provide up to 49 USSD codes you can use to get loans in Kenya.

49 USSD Codes For Quick and Instant Loans in Kenya

We took the time to research and compile an extensive list of mobile loan lenders in Kenya. Scroll down to view and select your preferred quick loan USSD code and service provider.

Platform	USSD Code for loans
Pi Capital Ltd	*879*99#
Premier Credit	*241#
Stanbic Bank	*208#
Chase Bank of Kenya	*275#
Commercial Bank of Africa	*654#
Consolidated Bank	*262#
Diamond Trust Bank	*385#
Equatorial Commercial Bank	*286#
Equity Bank of Kenya	*247#
Extend Money Services	*676#
Family Bank of Kenya	*325#
Faulu Microfinance Bank	*339#
Safaricom/NCBA/KCB Bank	*234#
Gulf Africa Bank	*399#
Gusii Mwalimu SACCO	*879#
Century MFB	*871#
HF Group (Housing Finance Company)	*618#
I&M Bank Limited	*458#
Jamii Bora Bank	*344#
Safaricom/KCB	*844#
First Community Bank	*342#
Mobile Opulence Ltd	*610#
K-Rep Bank	*527#
Kenya Women Finance Trust	*378#
Musomi Microfinance Institution	*279#
Maisha Bank	*281#
National Bank	*625#
NCBA Bank	*654#
Ndege Chai Sacco	*882#
NIC Bank Limited	*488#
OkoaMia Ventures	*628#
Okoa Sasa	*628#
Okoa Thao	*660#
Okolea Int.	*842#
Kopa doh	*610#
Sotiwa	*243*90#
Paddy Micro Investments	*269#
Telkom	*133#
Pezesha Africa Ltd	Text ‘Pezesha’ to 22235
Post Bank	*498#
Rafiki Microfinance Bank	*366#
Standard Chartered Bank	*722#
SMEP Microfinance Bank	*741#
Sotiwa Ltd	*243*90#
Stima SACCO	*489#
Barclays	*848#
Transaction Bank of Kenya	*862#
MyCredit	*322#
Zenka Finance	*841#

How to apply for loans using USSD in Kenya

The systematic way of applying for a loan through USSD is simple and short. All you need is:

1. Identify your mobile loan lender.
2. Take note of the mobile loan lender’s USSD code.
3. Meet all the requirements.
4. Dial the USSD code on your mobile phone.
5. Provide the details requested by the prompt.
6. Get your loan.

Benefits of Using USSD Codes to Access Loans

Using USSD codes to access loans comes with its perks.

1. It is easy to use.
2. Fast response time.
3. It is available round the clock. 
4. No mobile data charges.  
5. You can use it to access your account balance.
6. It can also track your financial transactions.

Requirements for Getting Loans Using USSD Codes in Kenya

Although USSD codes are interactive and short, they still have some requirements, which include:

1. You must have an account with the bank; the bank must have your personal information like name, account details, and other things
2. You must have your SIM card registered with the bank
3. Dial your code using the registered SIM card.

Conclusion

You don’t have to go through the stress of downloading and installing an app before obtaining your loan. Sometimes, the loan apps may not be compatible with your smartphone or tablet. With a single USSD code dial, you can get a loan for half the time you would have spent on the Android app.

Instant Unsecured loans are loans that are granted with no collateral and within a few minutes. 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 instant unsecured loans and if they’re right for you.

What is an instant unsecured Loan?

As stated above, instant unsecured loan is a form of loan that doesn’t need collateral or a security deposit to receive and is disbursed immediately.

With instant unsecured loan, instead of pledging assets, borrowers qualify based on their credit history and income. Lenders do not receive the right to take physical assets if borrowers stop making payments on unsecured loans.

You promise to repay, but you don’t back up that promise by pledging collateral. 

An unsecured loan generally comes in three forms:

• Personal loans
• Student loans
• Unsecured loans

How instant unsecured loans work

When applying for an instant unsecured loan, most lenders check the applicant’s history to see if you have successfully paid off loans in the past. Based on the information in your credit report, your credit score is created, 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 instant 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.
• Pay slips for last 3 or last 6 months

How to Apply for instant unsecured Loans?

The following are ways to apply for unsecured loans:

Lender’s 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 instant unsecured loans

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

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

National Bank of Kenya

NBA is a commercial bank and licensed by the central bank of kenya. You can get an unsecured loan of kes. 6,000,000 without collateral

Benefits

• Short processing period
• Easy payment
• No collateral required
• Top up your loan
• Easily accessible

Rates and fees

• Minimum of KSh 50,000 and maximum of KSh 6,000,000
• Interest Rate is made up of  CBR + Bank Margin % p.a on a  reducing balance.
• Has a minimum of 6 months and a maximum  of 84 months
• Negotiation fees  of 2% for first loans and buy offs. Then 1.5% for top-ups.

Internal costs

• Appraisal fees charged per individual

External costs

• Excise duty
• Insurance fee charged against retrenchment and death.

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 instant 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

Stanbic Bank Kenya

Stanbic Bank Kenya is also one of the top-notch loan 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

• Flexible payment and loan-top after 6 months or repayment
• Fast and hassle-free application process and fund disbursed within 48hours

What you need to provide

• Kenyan National ID
• Proof of Residence. You can come along with your utility bill or lease agreement.
• 3 months bank statement or your current payslip
• Kenya Revenue Authority PIN

HF Group

H.F Group is an integrated property and financial solutions regulated by Central bank of kenya. They are major financial institutions that offer SME loans and Asset financing in Kenya. The personal loan offered by the company comes with the following terms:

Features & benefits

• Maximum period of 36 months and Maximum amount of Kes. 500,000
• No early repayment penalties
• Attractive interest rate on reducing balance

How can I ensure my instant unsecured loan application is approved?

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

• We should pay bills and existing loans 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 instant unsecured Loans

From the borrower’s perspective, the main advantage of an instant unsecured loan is the fact that it is risk free and gotten within a short while. If you receive an instant 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 instant unsecured loans, there is a high chance that your debt will be discharged if you file for bankruptcy.

Additionally, since instant unsecured loans don’t require any collateral and are paid within a few minutes after application, the lender takes on more risk. This generally translates to higher interest rates and less favorable terms.

While instant unsecured loans may be less risky for the borrower, it is 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 will pay as interest.

Conclusion

An instant 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 and still get your loan within a few minutes is definitely an advantage to the borrower.

Especially in a situation the borrower has little or nothing to offer at all. You can enjoy instant unsecured loans from any place you are in Kenya. All you need is to login to the lender’s website or visit their physical office. 

Among the three basic necessities, only “Shelter” can be leveraged for cash. Home equity loans in Kenya provide lower-interest cash during a financial crisis. One of the benefits of home ownership is the opportunity to benefit from the housing market’s performance when it is performing well. 

In addition to getting a low interest rate, you also have an appreciating asset that you can leverage. You could complete a number of important projects without impeding your long-term financial goals if you have a solid plan in place to utilize your home equity.

What Is a Home Equity Loan?

A home equity loan is a loan taken out against the equity in your home. You get a home equity loan based on how much you owe on your mortgage and how much your house is worth. It is also known as a home equity installment loan and is a form  of consumer debt.

Additionally, a home equity loan can also be called a “second mortgage” which  allows you to keep your existing mortgage while taking out a new one time loan against your home’s equity. You repay the loan with equal monthly payments over a fixed period.

What you should know about home equity loans in Kenya

Take advantage of your home’s equity by taking a loan, but consider how long you plan to stay in your home before applying for a home equity loan. Your loan or credit line must be paid off before your sale date. Depending on how much you owe on your mortgage and how much you pay in closing costs, you could walk away with little or no profit from the sale.

How a Home Equity Loan Works

The concept of a second mortgage is essentially the same as that of a home equity loan. Lenders use the equity in the home as collateral. Borrowing capabilities for homeowners will partly depend on the combined loan-to-value ratio, which will range from 80% to 85% of the assessed value of the home. Of course.

Banks in Kenya that offer home equity loans

1. Absa bank
2. Equity bank
3. Standard chartered 

How to determine home equity loan amount and interest rate

The amount of the loan and the rate of interest charged also depend on:

1. The borrower’s credit score 
2. Previous payment history.
3. Value of the home

Two varieties of home equity loan

Home equity loans come in two varieties, which are:

1.  Fixed-rate loans: In this case, the borrower receives a lump-sum payment which is repaid over a fixed period, and the payments and loan interest percentage remain the same.
2. Home equity revolving lines of credit: A home equity line of credit (HELOC) is like a credit card that has a variable or adjustable rate of interest

Advantages and Disadvantages

Home equity loans have several benefits, including their affordability, but they also have drawbacks. The pros and cons include:

Pros

1. Easy to get and source for
2. Room for fixed interest rates
3. Flexible use of funds
4. Lower interest rates than other debt
5. Possible tax benefit of interest paid

Cons

1. Two mortgage payments running at the same time
2. Higher interest rate and payment of premium
3. Comes with Closing costs
4. Possible spiraling debt
5. Can lead to home foreclosure

Example of a Home Equity Loan

Example 1:

For example, if your home is currently worth ksh. 800,000 and your current mortgage balance is Ksh 500,000, you have Ksh 200,000 of equity in the home and could borrow up to ksh. 80,000 (80% of ksh. 200,000) with a home equity loan.

Example 2:

Let’s say you have a loan with a balance of ksh. 50,000 at an interest rate of 26% with one year left on the term. Paying off that debt to a home equity loan at a rate of 10% with a term of four years would actually cost you more money if you took all four years to pay off the home equity loan. 

Note: Remember that your home is now collateral for the loan.

The Right Way to Use a Home Equity Loan

1. When you have a stable and reliable source of income.
2. When you do not have additional loans elsewhere and borrow responsibly.
3. If you plan to use a fixed-rate home equity loan to cover a large purchase, such as the cost of a new roof on your house or an unexpected personal need.. 

Benefits of home equity loan to borrowers

1. Home equity loans provide an easily accessible source of available cash. 
2. Helps in consolidating pressing debts
3. The interest rate on a home equity loan is way low compared to the rates on credit cards and other consumer loans.

Benefits of home equity loan to Lenders

1. Gets interest income and fees from the borrower’s initial mortgage and earns even more from the home equity loan.
2.  For defaulting borrowers, a lender gets both the initial mortgage and the home equity loan; it also gets to retake back the property and sell it again, starting the cycle over with the next person. 

Conclusion 

Note that a home equity financing can be set up as a fixed loan or a line of credit. A home equity loan provides you with the total loan amount upfront.

Look around for loan plans you can get from banks, SACCO, credit unions, and mortgage companies when considering a home equity loan or credit line. Shopping or conducting a careful review of all financial institutions can help you get a better deal.

Keep in mind, however, that the amount you borrow through a home equity loan is secured by your home. The lender may have the authority to forcibly sell your house if you don’t pay your debt. Make sure you understand your home equity loan terms.

With the current global pandemic and other economic issues in Kenya, living has not been easy. No matter how much you work, toil and expect the unexpected, there is simply no way to know what lies ahead. Escaping from emergencies in a smarter and effective way is through an emergency loan. After all, unplanned and completely unpredictable events must always occur.

An emergency fund in Kenya gives you peace of mind when daily troubles and lack of funds leaves you stressed out. So know this, it is difficult to come up with a fund right away when you need it. Are you still willing to go along with me? If yes, let us explore emergency loans in Kenya and all you need to know.

What you need to know about Emergency loans

Emergency loans often come as unsecured personal loans, salary advances, payday loans, and credit card cash advances. These forms of loans are gotten quick to solve the said emergencies. It is sent directly to your bank account or your M-Pesa account. Often within a business day or few hours. The fast processing of the loan depends on the lender and the details of the loan application.

To fully understand the lender’s requirements and your options, conduct a quick research. Also read everything throughout the process.

What are Emergency loans?

Emergency loans are loans that cover sudden expenditures. They are unsecured personal loans that you can borrow to solve pressing and unexpected expenses. Relatively they are expenses like unexpected car repairs, home roof repairs, personal needs, etc.

Because emergency loans are unsecured, they require no collateral. However, some lenders offer emergency loans where the borrower has to put up an asset.

Personal emergency loans steps and procedures vary by lender, so all you need to do is to evaluate each of your options. Consider how much you can borrow, the fees, minimum amount, your income and the requirements

How does emergency loan work

An emergency loan is an unsecured personal loan that allows you to get a loan and pay for unexpected expenses immediately. If they approve your loan, it gives you the power to own a fund and solve your immediate problem and pay back the next day or soon enough.

Then instead of submitting a collateral and going through the long process of collecting a loan, you take the quick step. You make simple fixed- rate repayments within a month or more based on your terms.

Personal emergency loans come with low credit interest rates than credit card cash advances.in paying back the fund you collected, do it in a smarter, affordable and better way.

What can you use Emergency loan for

Emergency loans as a type of unsecured personal loans can be used for almost everything. It is pertinent you review the terms of each lender before proceeding to apply. Therefore, emergency loans are used to pay Bill’s ranging from:

1. Car repairs: while going through your daily activities, your automobile might need an immediate repair. The tendency being to use it at the most effective time often regarding going to work.
2. Unexpected circumstances to see the medics: often the body system changes without permission. The need to see the doctor may arise unexpectedly and if you don’t have cash, an emergency loan is the best option. You can also use the fund collected to pay off accumulated hospital bills or purchase drugs. 
3. Natural disaster occurrence: natural disasters like flood and wind blowing off home roofs might need an emergency fund to repair it. You can collect the money and sort out disaster occurrences and pay in due time.
4. Utility bills: unexpected bills and utility bills can make you go for emergency loans when you don’t have the fun. It can be used to set off immediate bills to avoid embarrassment and issues.
5. Machine replacement and food stuffs: replacing a machine for creating more output is important and might require an emergency loan to tidy that up. Also, hunger can not be endured till the end of the month when you receive a salary. It is better if you take up an emergency loan and buy foodstuffs and payoff at the end of the month.
6. Rent payment: if your rent is due and you run short of cash, an emergency loan can sort that. To avoid being thrown out of the house, it is better you sort for a better option and better later with an interest.
7. Funeral expenses: death does not knock on the door before it comes in. When a loved one passes away without leaving a funeral cost, you may take up the responsibility and go for an emergency loan.

Types of emergency loans

When you need a loan in time of emergency, there are several options out there that you can pick from. The type of loan you go for depends on your credit history.  They may also consider your capacity in repaying the loan. The types of emergency loans we have are:

1. Personal loans
2. Payday loans
3. Credit card cash advance 
4. Title loans and Shylocks loans

Personal loans

Unsecured personal loans is a type of an emergency loan that is rampant in Kenya. Your eligibility and amount are determined using your credit history. Some personal loans also are collected by presenting a collateral like logbook car loans.

Learn more on how to apply for personal loans in Kenya

Payday loans

This is also a form of an emergency loan that has a high interest rate and flow amount. You make repayment on your next payday and require no credit check. Unsecured personal loans are better when compared with payday loans.

Credit card cash advance

This involves borrowing funds through your current credit balance when you have a credit card. The interest rate for this type of emergency loan is also high. Transactions and processing are associated with this type of loan.

Title loan and Shylock loan

Here you need to provide your car or a tangible item, as requested by the lender for funds. When you cannot pay back the loan, the lender keeps the car or sells it off to recover the loan amount.

Check out other types of Loans in Kenya

Where to get an emergency loan

When there are options like credit card cash advance, payday loan and others, there are other options. You can also collect emergency loans from:

1. Bank
2. Online lenders
3. Credit union

Banks

You can get an emergency loan in the bank and have it transferred to your bank account. If you check and find out that you qualify and the process isn’t too long, you can go with the bank. 

Online lenders

Different online lenders in Kenya offer emergency loans quick and easy using a loan app. Some show you the pre-qualification on the app to check if you qualify. This option is also better once you are sure they are reputable lenders, have a secure site and legitimate as well.

Credit unions

A credit union can provide emergency loans. They transfer the money to your credit union account. It is a community or women or region based union. Their loan amounts vary, and they are fair to credit scores. Just meet the requirements and find out If they give to their members only or individuals that have covered their probation. 

How to choose an emergency loan

When doing your quick research and comparison both online and offline, know what you want. Avoid choosing the first person, each for the best lender by considering:

1. Fund arrival time and how soon to get the cash
2. The interest rate associated with the loan amount.
3. The repayment duration. Know that the emergency loan duration varies with lenders. It is important you go for a longer repayment duration to give you time to gather enough funds.
4. Check all other associated fees. Watch out for what lenders charge, especially the transaction fee and late payment penalties. 
5. Identify the credit score to meet. Your credit history affects your interest rates and the loan amount.

Emergency loan alternatives and alternatives when you have a bad credit

When you have weighed all options and there are many shortcomings. Seek for other alternatives. Often bad credit could be the cause. Look out for other escape route to this. Other options include:

1. Seek an advance cash offer from your employer 
2. Checkout charitable financial organisations 
3. Talk to a friend, family or neighbors.

Conclusion 

You can conquer any situation you find yourself in life that may require funds. Life issues knock on everyone’s door; the financial market has mapped out daily and several options to sort it out. Emergency loans are loans you receive to cover unexpected life issues. We have various types of emergency loan discussed in this article. Know them and select the one you need to go for. 

Also, note strategies or alternatives to take when commercial loans fail you. Be smart enough to penetrate the financial market quickly and smoothly to meet up and solve the emergency. 

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/no	Lenders	Interest Rates
1	mKey loans	9%
2	Branch loans	6% to 16%
3	KCB M-Pesa	4% to 15%
4	M-shwari	7.5% for 30 days
5	Mco-op cash loans	1.166% to 3.498%
6	Eazzy loans	2% to 10% for one month to 12 month
7	Timiza	6.17% for 30days
8	Whizz	7.725% for 30days
9	Nic mobile banking	1.13%

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.