Shika platform understands that even if you are employed, sometimes you need some extra cash to take care of some needs and waiting for payday could seem like forever, hence Shika empowers you financially to keep you going.

Shika, as a loan access platform, understands the need to lower the barriers preventing accessibility of credit and hence offers swift and flexible access to loans irrespective of your class without jeopardizing credit risk/loss. 

There are more interesting things about the Shika loan app that we’ll let you know in this article.

About Shika Loan

Shika Loan and its app was the first product of Alternative Circle founded by Kevin Mutiso in March 2016 with a mission to render financial access to over 200 million people worldwide. 

Shika is a lending platform that provides instant access to micro loans and flexible repayment plans for people who meet their basic eligibility criteria.

Customers using Shika are able to know their loan limits before taking loans. Shika only requires you to have an active M-Pesa mobile money account registered with a Safaricom number.

The platform is also available for financial institutions who can leverage on it to reach potential borrowers.

Maximum and Minimum Loan to Get From Shika Loan App

Shika loan app offers its customers a minimum of Kshs. 500 and up to Kshs. 10,000 which is to be repaid in 30 days with no hidden charges.

Shika will predict your loan limit and how much you would have to repay before you proceed with your loan application. This limit is determined by your credit history. A good loan history earns you higher loan limits.

How to Apply for a Shika Loan.

Getting a loan from Shika is very easy and you can get it within 3 minutes as long as you meet their basic eligibility criteria. You can get a Shika loan through the following steps:

1. Download the Shika Loan App: You can download this application from the website.

2. Create an account: To create an account, you would provide a valid national ID and an M-Pesa account registered with a Safaricom phone number.

3. Apply for a loan: Once you successfully create a Shika account, you can view your loan limits on the dashboard and click on apply for a loan, which is within your eligible loan limit/duration.

4. Upon application, your loan request is sent in for approval and once approved, your loan would be disbursed to your M-Pesa account within three minutes.

Interest Rates

They fix interest rate for Shika loan at a rate of 15% for 30 days irrespective of the loan amount.

Elegibility Criteria

Getting a loan from Shika requires you to meet their basic eligibility criteria. Which are:

1. Signing up for a Shika account already requires you to have an active M-Pesa mobile money account.

2. As a new user on the Shika app, you build your loan eligibility from your M-Pesa transaction history. However, subsequent eligibility is from your reputation on the Shika app which they draw from your frequency of loan requests and repayments.

Note: A good transaction/loan history often qualifies you for higher loan amounts on the Shika app.

Requirements for Taking up Shika Loan

You would need to meet the under listed requirements before you can access Shika loans through its app.

1. Be at least 18 years of age at the time of registration on Shika
2. Have/possess a valid National ID card
3. Have an M-Pesa mobile money account registered with a Safaricom mobile number and have at least 4 months of active M-Pesa transactions.
4. Have an excellent credit history with Shika and other loan providers
5. The Credit Bureau of Kenya must not blacklist you

Shika App Review

Shika loan is ideal for financing your personal or small business needs and can be accessed through the app. With the Shika app, you don’t need to wait for long hours to get a loan. The features of Shika app range from:

1. Easy access and flow of command and response.

2. The intuitive design of the Shika loan application makes loan application, disbursement and repayment process seamless. 

3. Shika app is secured and offers flexible eligibility loan limit repayment options on the dashboard.

How to Repay Your Shika Loan

You can repay loans collected from the Shika app either through M-Pesa or the Shika loan app.

Loan repayments on Shika are flexible, so one can choose to repay in daily or weekly installments as long as the repayment window is not exceeded. For loan repayments via the Shika loan app:

1. Login to the Shika loan app

2. Click on the Repay button on your dashboard

3. Copy the displayed Shika loan number

4. Complete your payment on the displayed M-Pesa page

For loan repayments via M-Pesa:

1.  Login to your M-Pesa account
2. Click on “Lipan a M-Pesa” and select PayBill
3. Enter the Shika loan PayBill number
4. Put in your phone number on the Shika app
5. Enter repayment amount
6. Authorize the transaction with your M-Pesa transaction PIN
7. Check for payment notifications from M-Pesa and Shika

Extra Important Information on Shika Loan and its App

• Please take note and heed that failure to repay a loan within stipulated repayment window attracts extra charges on the collected loan.
• If you do not repay a loan 30 days after the repayment window, they add an extra charge of 10% to the loan amount to repay.
•  Failure to comply and repay the loan after 60 days, they blacklist the customer on the Credit Bureau of Kenya.

How to Reach out Shika Loans 

For more information on Shika loans, you can reach out to their support via email@ shika-app.com or call 0742143999.

Conclusion 

Shika loan app and its platform have proven to be helpful to individuals and businesses who need access to easy finance without going through the stress of tight and stringent documentation obtainable in most financial institutions.

Shika app and its platform also offer one of the competitive rates in the Kenyan micro lending space, there’s no doubt that more individuals and businesses would resort to Shika loan app and its full platform.

Considering our daily commitments and unreliable public transport. We now see cars as a necessity and not a luxury. This has made staying informed on cars even more necessary.

Applying for car loans in Kenya are not as difficult as you might think. In need of Kenyan’s used cars, foreign cars, or brand new cars. You can get a car loan and drive your dream car

We will take you through everything you need to know about car loans in Kenya.

How do car title loans work?

You need equity in your car in order to get a car title loan. Lenders require that the vehicle is owned clearly by you, which means you do not owe a loan on the car. When applying for a loan, you will need to show your lender your car, proof of ownership (titles), and your driving license.

In exchange for the loan, you will hand over the title to your car. Car title loans typically have terms of 30 days, similar to payday loans, depending on your lender. Besides the amount borrowed, you will need to pay any fees and interest that may apply.

In order to complete the application process and get approved, you will need your car, a clear title, a photo ID, and proof of insurance. 

Minimum Payment for a Car loan

Generally, to make lower monthly payment and less interest rate, you need to go for 20% interest for brand new cars and 10% interest down for used cars.

Credit score for a Car loan

The best and recommended credit score for a car loan is 660 and above. It then guaranteed interest rates of 4.96% to 6.36%, which is lower.

In addition, for a credit score below 660, the car will be costly and the interest rate high.

Average interest rate and corresponding monthly repayment duration

The average interest rate as against the repayment monthly duration is as thus:

1. 36 months – 4.21%
2. 48 months – 4.31%
3. 60 months – 4.37%
4. 72 months – 4.45%

Learn more about Loan repayment schedule

What you should know before going for a car loan

Before going for a car loan, there are things you need to know and consider. They include:

1. You must possess a valid Kenyan ID card or passport
2. As an employed or self employed, you must have a steady source of income
3. Know the interest rates of the car
4. Be ready to make an upfront deposit. As you won’t be loaned the amount equivalent to the full amount of the car
5. Be disposed to present a six(6) months consecutive bank statement
6. If employed, be ready to present three (3) months of your latest payslips
7. If employed you must present evidence of proof of business ownership, contracts, involves and receipts
8. You will also have to present a car valuation report. (requirements for this car valuation differ from lender to lender).
9. Be also disposed to provide a copy of your logbook.

How do you get a car loan in Kenya

To get a car loan in Kenya, follow the following steps:

1. Know and go for the right dealer who has a relationship with a bank
2. Meet your existing bank
3. Know that your eligible or check out your car’s eligibility
4. Get your  good credit score records ready
5. Go for the right amount.

Check out the different car loan companies in Kenya

What methods can i use to get a car loan in Kenya

Basic ways or modes you can apply for car loans are:

1. Bank
2. Online money lenders
3. Credit union
4. Dealership

See other types of loans in Kenya you can apply for in 2021

Where can i get a car loan in Kenya

Lending platforms and banks that offer car loans and numerous car maintenance funds in kenya are:

1. Cheki finance/Kenya
2. KCB
3. Equity bank
4. Co-operative bank
5. Mogo

What are banks’ requirement for getting car loans

Banks need the following before granting you a car loan.

1. They need your ID card or passport
2. Your driving licence
3. Proof or evidence of income or bank statement
4. Evidence of good credit score records.

Steps to Getting a Car Loan

Steps to getting a car loan in Kenya are:

1. Fill and complete the lender’s car loan application. You need to show all necessity personal and financial details
2. Provide other required documents and submit it
3. Wait to have the loan application approved

Best Ways to Get a Car Loan

The best ways to get car loans in kenya are:

1. Go for the loan separately from the car
2. Restrict your loan application to a two-week period
3. Know your credit history
4. It is best you go for the loan amount (that is the best price for the car and not the monthly payment). But it is also good to know the amount you will pay monthly.
5. Never assume. Be sure
6. Get the right tools and do your maths properly.

How long it takes to get approved of your car loan

Approval time of a car loan varies from lender to lender and between applicants. Once you have provided all the details requested for. You can have your car loan approved within 48 business hours

Calculating Down Payment for a Car Loan

To calculate your down payment, you work it as thus:

Total amount multiplied by required percentage(%) by the lender minus the value of the car you traded-in.

(Total amount X required percentage(%) by the lender – the value of the car you traded-in).

Benefits of Car Loans

The benefits of car loans are:

1. You pay gradually
2. Definitely, once it is approved, you can own your dream car
3. Is more likely you get the best deal ever because you will look out for so many things

Conclusion

First thing to do is identify the best car of your choice and how much it cost. Then choose the mode or ways to go for the loan. Whether through an online lender, bank, credit union or through a car dealer. Some car dealers have loan options.

Check out the interest rate and credit score limits. Assume nothing. Study and comprehend the requirements or documents requested by the car dealer bank.

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

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

What is an Unsecured Loan?

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

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

An unsecured loan generally comes in three forms:

• Personal loans
• Student loans
• Unsecured credit

How Unsecured Loans in Kenya work

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

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

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

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

Documents required for obtaining an unsecured loan

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

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

How to Apply for Unsecured Loans?

The following are ways to apply for unsecured loans;

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

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

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

Top banks in Kenya that offer Unsecured loans

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

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

• ICICI Bank

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

Benefits

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

• HDFC Bank

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

Benefits

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

Yes Bank

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

Benefits

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

IDFC First

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

Benefits

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

How can I ensure my Unsecured loan application is approved?

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

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

Pros and Cons of Unsecured Loans

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

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

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

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

Conclusion

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

A big “Yes” to a quick loan when you need one. Never go broke again. No much stress. Absence of long queues. No paperwork. No office visit. Just use your smartphone and download the Pesazone App. PesaZone loan App gives you leverage to request and receive loans via M-Pesa from anywhere in Kenya without any documentation or stress.

Be my guest as I take you through the PesaZone loan and features of the app.

About Pesazone loans

PesaZone loan is in the form  of a peer to peer lending platform. Lending through peer to peer is a method where an individual with enough fund or money lends money to another. Someone who acts as a referee stays there to watch everything.

However,  the debtor pays back the money borrowed. The lender uses the lend option on M-pesa to lend money. They allow you to top up and also move  from Ksh 1,000 to Ksh 50,000. 

 As a customer, you can take a loan directly from the app, from KES 250 to 50,000 and receive the cash via M-Pesa immediately. 

Requirements and Eligibility

Who is eligible for PesaZone loans? To be eligible for PesaZone loans, you must meet a few requirements as listed below:

1. Be an active Safaricom user for at least 6 months.
2. Have a Kenyan ID
3. Have an excellent credit history, therefore, must not be negatively listed with CRB.
4. Pay fee of KSh 1 as verification fee.

Pros and cons of pesazone loans

The pros and cons of Pesazone loans includes:

Pesazone loan platform gives you quick loan instantly and within 24 hours

You can repay your PesaZone loan in instalments basis i.e loan repayment as it applies

As a lender, loan repayments are collected and deposited into your account automatically and you can withdraw through M-pesa.

Cons

• You cannot download PesaZone from your iPhone or other IOS systems. 
• You cannot access Pesazone loan via USSD code
• Their system of operation is strict. When one doesn’t get the rating of the Credit Reference Bureau and other online records, PesaZone will not  be able to give you a loan.

Minimum and maximum amount you can borrow from PesaZone loans 

PesaZone loan app has a minimum loan amount of KSh 250. The highest loan amount from PesaZone loans is KSh 50,000.

How to borrow loans from PesaZone

You can borrow instant mobile loans from PesaZone in the following simple steps:

1. Visit the website to download the app.
2. Register by filling in the required details like your full name, your national ID card  number, your Safaricom phone number and your  Date of Birth).
3. Go further to create a 4 digit PIN for your PesaZone login.
4. Log in to your PesaZone account and apply for a loan by adjusting or moving  the slider.
5. Select your intended repayment period.
6. PesaZone loan app will showcase your loan terms and conditions both weekly repayment amounts and the  interest rate. 
7. Read through and accept the loan terms and conditions to conclude the loan application process.
8. Your loan will be delivered to your Safaricom number in less than 24 hours. You will receive a message indicating your PesaZone loan receipt.

We recommend that you don’t delete your M-Pesa transactions history. The decision to give you a loan is based on the smooth and good record history on M-pesa. it is a best practice  to accumulate M-Pesa records for about 60 days.

PesaZone loan interest rate

Their loan interest rate is at an average of 12%.

PesaZone loan term/Duration

The minimum PesaZone loan period is 7 days while the maximum PesaZone period is 90 days.

Going by the above illustration:

A customer can  select a different repayment period displayed on the Loan Repayment Period field either weekly or monthly. The repayment date is  based on the loan amount. A loan amount of KSh. 3,000 and above has longer repayment durations. 

An Additional fee called  Facilitation fee?

On PesaZone loan platform, a facilitation fee of Sh.500 is available. 

Illustration 1:

Loan Amount: Sh. 20,000, Facilitation fee: Sh. 500, Total loan cost: Sh.20,500.

App review

You can download the app from the https://pesazone.com/site/index.

The features of the pesazone app range from:

1. You can use the App to view the balance, account statement and the repayment instructions on the window field.
2. The app has lending option where different lenders can register and lend to other citizens
3. It is easy to navigate and use
4. Loans given out by a lender when repaid is quickly transferred to the lenders account 
5. A customer can quickly withdraw cash through his M-pesa account on the app.

How does PesaZone loans determine  and showcase my loan limit?

The highest loan amount is KSh. 50,000. To determine your loan limit, PesaZone looks at your credit score based on the information they got from CRB (Credit Reference Bureau) Reports and M-Pesa transactions history.

In addition, the loan limit  increases each time you receive and repay the amount. (Remember that all loans should be repaid on time). 

How to repay PesaZone loans

PesaZone loan has weekly instalments, by implication, this means your first loan instalment should be repaid in 7 days. Procedure for repayment include:

1. Go to your M-Pesa menu and click ‘Lipa Na M-Pesa’.
2. Choose your  Business number, input the pay bill number 754285 to repay your PesaZone loans.
3. Enter your Safaricom phone number as the account number.
4. Enter the amount to be paid and confirm with your pin.
5. A nnotification indicating your loan repayment will be sent to you.

Additional explanations on PesaZone loan

1. You can repay your loan before the due date and in instalments of any amount.
2. Excess payments will be applied to your future loan application 
3. You can request another loan immediately if you settle the current one.

How fast are loans released

Loan applications are processed within 2 minutes and you receive the exact loan amount you apply for on average of 5 minutes.

How to contact pesazone loans

For any queries, email  them via support@pesazone.com. To ensure and maintain efficiency, you can communicate them on their website, via call or physical visit to their office. 

You can also visit their website to learn the loan terms and conditions.

Conclusion

If you really need to make money using money, you can loan/lend out what you have and get an interest in return. If you also wish to have your loan account deactivated, you will be required to make the request in writing via email to support@pesazone.com. Pesazone loan app is simplified and user friendly, you can access loans at any time. It is a loan platform you can trust and still want to borrow from in times of emergency.

With Faulu microfinance bank loan Kenya, you can realize your dreams through getting empowered. Accessing quick and affordable loans by starting up that business you have always wished for. Faulu is a loan scheme program that targets the poor, it has also demonstrated a deep record of enviable growth in its assets and loan records.

About Faulu Microfinance bank Kenya

The origins of Faulu Microfinance Bank (Faulu) according to record, is traced back to 1991 when Food for the Hungry International (a Christian relief organization) organized a loan scheme, under the name Faulu, to help empower and give out loans to the people. 

Faulu Kenya as it is popularly called has helped numerous citizens get short-term loans. In addition,  it has also opened opportunities for funds for small businesses and farmers. 

As a microfinance bank, it offers different types of loan to Kenyans and we will take you through the different types of loan Faulu Kenya offers.

Types of loans offered by faulu, their interest rates, minimum amount and how to apply

There are three main types of loans offered by Faulu, they are:

1. Retail Consumer loans

2. Micro loans

3. SME or business loans.

 Retail Consumer Loans  

These are loans offered to retailers and small businesses. They include:

        A. Check-off Loans: 

These are loans that solve different purposes or a Check–Off Loans for salaried employees, Civil servants, Forces, County Governments, government and corporates officers. It is binded by an MOU.

Minimum Loan To Collect

Minimum loan one can access is Kes.10,000 

Maximum Loan To Collect

Maximum loan one can apply for is Kes 3,000,000

Loan Term Repayment

Loan term of up to 84 Months

       B. Tamba Imara Check-off Loan

 This category of loan is offered to salaried individuals working with Institutions where Faulu doesn’t have an MOU e.g. NGOs and International Agencies etc.

      C. Faulu Unsecured Salary Advance

It is Short term emergency and immediate  loan offered to customers with Faulu Salary Account

Check out unsecured business loans in kenya

Maximum Loan To Collect

A maximum of 4 times the net salary, which is approximately a maximum of ksh. 100,000. A monthly written Standing Order from Faulu Salary Account to Loan Account.

 Micro Loans

 They are loans given to small businesses and group of individuals to finance their business. The categories of loans under this are:

A. Faulu Micro Loan

It is a multipurpose loan that funds small businesses and entrepreneurs with enough  Working or LPO capital and financing.

Minimum Loan To Collect

Minimum loan one can access is Ksh. 1,000,000 

Maximum Loan To Collect

Maximum loan one can apply for is Kes 3,000,000

Loan Term Repayment

Loan term of up to 18-36 months

Interest Rate

The interest rate is based on refinancing which is available on appraisal. In other words, existing loan is 75% paid from the 2nd Loan cycle.

B. Group Business Loans

It is a funding solution geared towards enhancing and helping groups grow and improve their businesses.

Minimum Loan To Collect

Minimum loan one can access is Ksh. 5,000 

Maximum Loan To Collect

Maximum loan one can apply for is ksh. 500,000

Loan Term Repayment

Loan term of up to 3 -24 Months

Interest Rate

The interest rate is based on refinancing which is available on appraisal. In other words, existing loan is 75% paid from the 2nd Loan cycle.

C. Faulu Chama Loan 

It is a loan given to welfare groups and  investment clubs in the formal or informal setting that operate a Faulu Chama account

Features And Benefits

1. Favorable and affordable 
2. The repayment period is flexible 
3. MOU and LPO funds for groups, business, opportunities and contacts. 

D. Pesa Chap Chap

 It is a short term emergency  loan. It is a loan given out based on urgency and immediate needs.

Minimum Loan To Collect

Minimum loan one can access is Ksh. 300

Maximum Loan To Collect

Maximum loan one can apply for is Max ksh.10,000

Loan Term Repayment

Loan term repayment of up to 10 days

 SME/Business Loan

 This is a type of loan given to businesses or small and medium enterprises. They are:

A. Asset Finance Loans

These category of loan  target individuals, businesses and Chama groups. 

Maximum

Up to kes.100,000,000. 

Interest Rate: 

Interest rate is as low as 9.5 % 

B. Biashara Loans

This type of loan requires groups made up of 15 – 30 members. The loan is meant to support women. Women with small and medium scale businesses. 

Maximum

Minimum of 10,000 Kenya shillings. 

Interest Rate

They have interest rates of 9.5 %.

Repayment Period

Cool repayment duration of 72 months. 

C. Insurance Premium Financing (IPF) 

They design this loan towards supporting individuals and SMEs to pay Insurance Premium with reputable Insurance companies. 

Maximum

Maximum of KES 3,000 – 500,000

Repayment Period

Up to 10 Months repayment period

D. Faulu Landlord Loans

They make this loan accessible to landlords with property in Kenyan cities to help finance, develop and expand their property and incomes.

E. Ushirika Loans

 It is a flexible loan given to churches and para churches for their income generating projects. 

Minimum

Minimum amount to access is ksh.50,000

Maximum

Maximum amount to access is Ksh. 20M

Repayment Period

Up to 2 months repayment period.

Click here to read about business loans in Kenya

How to apply for Faulu Kenya Loan

The following are simple steps to getting a loan from Faulu microfinance bank kenya:

1. Be more than 18years.
2. Identify the kind or type of loan you want to apply for. Faulu Microfinance bank will not give you loan for frivolities.
3. Open an account with Faulu Kenya.
4. Service the account and keep your M-pesa history ready if need be.
5. Visit the bank and ask for the required documents. 
6. Get your documents ready
7. Present a document or a collateral if need be.
8. Sign the necessary documents 
9. Get your loan

How do I withdraw from Faulu kenya account/bank

Withdrawing from your Faulu kenya bank or account, take note of the following steps:

1. Enter the 6-digit ATM Authorization Code received via SMS on the ATM keyboard. 
2. Input your Safaricom mobile number accurately 
3. Input the amount you need, click continue to proceed.
4. Get your cash instantly from the ATM and a receipt.

How To Repay Faulu Kenya Loan

Loan Repayment

Loan repayment differ putting in consideration the different types of loans offered by Faulu kenya. 

You can collect the loan automatically by writing a monthly written or automated Standing Order from Faulu account to your loan account.

About Faulu Kenya loans

Visit the website at https://www.faulukenya.com/ to learn more.

Find them on Ngong lane, off Ngong Road.

You can call them on +254 711 074 000 or +254 711 074 074

You can also Email them@ info@faulukenya.com

Related articles

Conclusion

Faulu Kenya is a microfinance bank with a difference. They offer different types of loan which is easily accessible. You can easily access Agriculture and emergency loan to boost your business and fund your projects. NGOs are not left out, they can access the loan with a flexible interest rate and longer repayment period.

Private money lenders in Nairobi believe that in tough times and in need of financial help, the last thing to do is worry about where to get a loan. Mobile banking is rampant in Kenya.

Some of these private lenders operating mobile banking systems have their primary offices in Nairobi. Nairobi is in the heart of Kenya.

Private money lenders give out online, business and secured loans to the people in the city. Their priority is to give you money when you need it.

We will take you through private money lenders in Nairobi.

Who is a private money lender

A private money lender is an independent person or organization rendering financial services to the people. They give out loans to investors and customers to solve distinct problems. They also give out different loans.

In addition, they provide platforms both online and offline where you submit application loans. At the end of the month, you pay back the loan with a stipulated interest. They are almost an opposite to getting commercial loans.

List of Some Private Loan Lenders in Nairobi

This is the list of some private money lenders in Nairobi. They are:

1.  Izwe loans – Kabarsiran Avenue, Nairobi Kenya
2. Rudisha instant loans- Gikomba market road, Nairobi Kenya 
3. Instant loans on items – Jevanjee Garden shopping Mall along Moktar Daddah Street, Nairobi 
4. Eclof Kenya- 73 ground floor, Kubrick, spine road, Nairobi Kenya.
5. GetBucks Kenya- 300 Tom Mboya St, Nairobi.
6. Samchi Credit Limited- Parklands/Highridge Parklands Parklands Plaza, Nairobi, Kenya.
7. Mombo app -13th Floor Argwings Kodhek Rd, in Landmark Plaza, Nairobi.
8. Kenya Ecumenical church loan fund – P. O. Box 34889, Nairobi, Kenya.
9. Mwananchi credit limited– Ecobank Towers’ 10th Floor, Kenya.
10. Loan millennium Place Shop 11 opposite Quick Mart Supermarket along Mumias South Road, Kenya.
11. Housing finance- 03 Koinange St, Nairobi, Kenya.

How to Become a Private Money Lender in Nairobi

To Become a Private Money Lender in nairobi, these are the things you need to do:

1. Start and establish your business and obtain the required insurance cover.
2. Meet and discuss with a talented lawyer about the lending structure 
3. Look out for your preferred lending attention.
4. Join a peer-to-peer lending group to find possible borrowers.
5. Test any potential customers by calculating returns and risk.
6. Then begin your private lending business. 

Functions of Private Money Lenders 

Different functions of private money lenders in Nairobi are:

1. They provide quick, personal and unsecured loans
2. Render advice on how to pay back your loans.
3. They also render other products aside from loans. Products that range from savings, airtime, etc.
4. They help upload your credit scores to CRBs, where you can quickly access them.

Types of Loans by Private Money Lenders

There are different types of loans provided by different private lenders in Nairobi. They are:

1. Personal loans
2. Unsecured loans
3. Business loans
4. Online loans
5. Civil servant loans
6. Car logbook loans

Documents Required by Private Money Lenders

The list of documents required by private money lenders in Nairobi are:

1. National ID
2. Letter of undertaking and Recent passport by some lenders.
3. Employment card for civil servant loans
4. Logbook documents for car logbook loans

 Elements in Private Money Lending 

There are three basic elements in private money lending. They are:

1. The lender: The is the private individual lending to investors and the public
2. The borrower: The borrower is the person who applies for loans from the lender.
3. Paperworks: This the platform that holds the agreement between the lender and the borrower.

How Private Money Lenders Get Paid

Private Money lenders get paid through the following ways:

1. Interest rate and
2. Application and extra fees.

Tips to Becoming a Private Money Lender in Nairobi

Simply put or state that private money lenders acts as a bank for other investors and the general citizens. It is beneficial, but there are certain tips to note. The tips are:

1. Start out small
2. Know what you are going into/subject matter
3. Be transparent
4. Find an excellent attorney
5. Be familiar with changes in the system.

Conclusion

Given the points above, private lending system in Nairobi has several benefits. If done properly, customers will know you and you explore from there.

With this in mind, they lend their own money to other citizens because they look forward to getting interest. Coincidentally, private money lending serves as an alternative to traditional lending institutions.

In conclusion, there are a lot of private money lenders in Nairobi that are transparent, find them out and secure a quick loan when you need one.

For those tough times, the only thing that can bail us out is an emergency loan. With the CBA loop loan app, you can draw an overdraft or take a personal loan, which is very easy to access.

They created CBA loop loan app to provide customers with means of skipping long queues that come with banking. With just a tap, one could access loans through the CBA loop app.

In this article, we will review the CBA loop app and take you through the loan platform, read on.

About CBA Loop Loan

CBA Loop is a Personal Financial Management (PFM) tool, which enables customers to track, plan, analyse most especially, borrow loans. They created the CBA Loop app to provide a means for customers to skip the long queues and monotony that comes with daily banking.

Commercial Bank of Africa (CBA) started its journey in 2006 with mobile payments and offers loans through its revolutionary digital banking service, Loop, which they launched recently. With your mobile phone, you can access a quick loan and have it transferred to you immediately.analyse,

What are the Pros and Cons of CBA Loop Loan

App?

Let us quickly look at the pros and cons of CBA loop loans. It includes:

• The CBA Loop app is quick to load and feels great while using.
• Their loan limit Ksh 3million and overdraft Ksh 100, 000 is high considering the fact that it is being accessed through an app
• The CBA Loop app is easy to use, navigate, and quick in loan application
• There is a simplified credit score in the form of a clock with clear indications of the amounts that one could use.

Cons

• They can improve their app for easy access and usage, if the frequently asked questions section was accessible on the app instead of through the browser/search engine.

What are the maximum and minimum amounts you can borrow?

Customers who use the CBA loop App can access loans of up to Ksh.3, 000,000 and overdraft of up to Ksh.100, 000. However, this makes CBA Loop the only digital banking platform that gives out such amounts without a physical visit to the bank and all the rigorous paper documentation by the traditional financial sector.

How do I apply for CBA loop Loans using the App?

Applying for a loan with the CBA loop app is very simple. The steps are:

1. Register for the service: To register for a CBA Loop account, you need to download the Android app, iOS app or go to their website.

2. Creating an account: To create an account, you need a phone number and your ID number. They will send you a PIN to activate the service to access your account.

3. Applying for a loan: Once you have successfully created an account, you can be able to apply for a loan.

4. Upon confirmation, they will email for the loan offer to your phone, read the loan offer agreement and comprehend it.

5, Accept the loan offer. (Log into the CBA loop app and click on the loop loan option and follow the prompt. Enter the loan offer reference number).

7. The money will be deposited into your CBA loop loan account.

Interest rates

Interest rates vary depending on the amount taken by a customer. Loan repayment period is between 6-36 months. 

Eligibility

Before you request for a loop loan, you need to have an account, but that does not guarantee you for a loan. For you to have access to a loan, be eligible. How does one become eligible for a loop loan you may ask?

1. You are eligible through your loop activity. The more active you are in using the loop app, the higher your chances of getting a loan.

2. How do you become active on loop? You do this by using the loop app for almost everything; paying bills, banking, sending money to others throughout your loop account. Once you are qualified for one, you can take up a loan.

What are the minimum requirements for taking up a loan with CBA loop app?

There are certain requirements needed for one to access and gain the loan. These requirements are:

1. Only person over 18years can use this app and also go for the loan

2. You need your identity card number for registration or your passport

3. You need to provide your KRA (Kenya Revenue Authority) pin number to register

4. Upon registration, a pin to activate your account sent to your phone together with an activation code that would help you collect your ATM card (Loop card) at a CBA Loop outlet of your choice.

CBA loop loan app

The good part about CBA is the app itself. The app is easy to manipulate, and there are no tricks or special knowledge required. You can download the app through Google play store.

The features of the app range from:

1. Size: the size is 11.46mb, which customers using phones with limited memory can download and use.

2. Colours: the app colour is eye catch and very colourful.

3. Navigation: It is easy to navigate round the app features and very easy to access loans.

How can you withdraw with your CBA loop loan app

Upon request and approval of loan, you can immediately withdraw your fund. Let’s take you through the steps:

1. You can use your CBA loop card to withdraw from the ATM.

                                 OR

2. You can also transfer to your bank account and withdraw directly from there. Login into your app, click “request loan” and choose transfer to my bank account or follow the procedure below to achieve a simple result.

 a. Open the CBA Loop app or log in to the loop website.

 b. Click on Payment.

 c. Choose the “send money” option.

 d. Choose from the options that appear, “to bank.”

 e. Select the method best suited either ‘Loop,’ ‘Pesa link,’ ‘EFT’, and ‘RTGS’ then enter the registered M-Pesa recipient number where you want to send the money.

 f. Enter the account and click proceed.

                                OR

3. You can withdraw money from CBA Loop to M-Pesa. To withdraw money from Loop to M-Pesa account, follow the steps below: 

 a. Open the CBA Loop app or rather log in to the internet website.

 b. Click on Payment.

 c. Send money.

 d. Choose from the options that appear, select ‘to mobile.’

 e. Select ‘mobile money’ and then enter the registered M-Pesa recipient number where you want to send the money.

 f. Enter the amount you wish to send and click proceed.

How fast are funds released?

Funds are released as quick as possible because it is a loan for emergency and unexpected issues.

How to repay your CBA loop loan

Access your loan schedule, which will be available in your loop app in the loop loan menu option. This schedule will give you a full summary of the future payment dates and amount due with a clear insight of the principal and the interest component.

You can repay by:

1.Transferring money from your bank account or M-Pesa account to your CBA loop account.

2. Loan repayment will be automatically collected from your loop current account every month from the date of disbursement.

How do I contact CBA loop loans?

You can Contact CBA loop loans through any of these ways:

Email: contactloop@cbagroup.com 

Let them know any complaint or issues by sending the issues to these lines: Telephone: +254 709 714444 or +254 730 714 444. 

You can also check out their website @: www.cbaloop.com

Conclusion

The service rendered by CBA eliminated the need for customers to visit physical bank branches with all its delays, as all the core banking services would be provided through the app.

Customers are willingly looking to access their money with ease and stress free, thus CBA loop loan is the best option.

When you are looking to buy a house or own a home and you don’t have enough to fund it. You can take up a home loan in Kenya.

Home loan enables you to buy lands or build your dream house. Get your documents ready and be honest with every single detail. Have a consistent income. Then you are ready to take up a home loan.

We will take you through a home loan application and all you need to know.

What is a Home Loan?

Home loan is a loan designed to help individuals own a house or purchase and develop commercial properties.

It is a loan taken to purchase plots of land to rent out for commercial usage or private usage. With a home loan, you can become a landlord in a few years after repayments. 

General Features of a Home Loan

1. Home loan is only for construction of a new house or purchase of a ready-to-move-in property
2. Interest rate is low compared to mortgage 
3. Typically, between 0.8% to 1.2% of the loan value
4. Up to 30 years

Difference between home loan and mortgage loan

Home loan is a loan for buying or constructing of houses while,

Mortgage loans are loans taken against a property that the borrower already owns.

How do you qualify for a home loan?

To qualify for a home loan, you need:

1. Credit score of at least 620 points and above 
2. APR and DTI ratio should be less than or equal to 50% to qualify for a home loan.
3. Have a consistent income flow
4. Be ready and willing to reveal everything single truth and present all documents required. 

Credit score for a home loan

You need a credit score of 620 and above. It involves enormous sums and lenders are not ready to lose or give out their fund just like that. You need to have a good credit score to qualify. 

How to improve your home loan eligibility 

To improve your home loan eligibility:

1. Check out for errors on your credit report 
2. Ever ready to respond to your lender

How to get your home loan approved

Because of the enormous sum involved in home loans, lenders conduct strict observation and scrutiny before disbursements. To get your home loans approved, you need to;

1. Be aware of your financial situations
2. Make a higher down payment
3. Have a good credit score
4. You can use a co-applicant like your parents
5. Keen details to application forms and documents.

Some home loan lenders in Kenya 

Some home loan providers in Kenya include:

1. HF groups
2. KCB
3. NCBA Bank
4. Stanbic Bank of Kenya

The HF groups 

They are private lenders that give out home loans in Kenya. 

Features

1. Up to 90% financing of the selling price or value
2. Maximum loan term of up to 20 years for employed individuals and 10 years for SMEs and groups
3. Product is for outright purchase of a home

Benefits

1. Our Home Loan provides you with an affordable way to buy a home with
2. Loan repayment duration of up to 20 years for occupied homes there is tax relief for customers
3. Mortgage protection cover in case of death or disability
4. Includes insurance cover for fire

Requirements for Employed Persons

1. National ID 
2. Passport copies
3. KRA PIN Copy
4. 3 months payslips
5. 6 month’s salary bank account statements
6. Letter from employer

Requirements For Self-Employed Customers

1. National ID
2. Recent Passport photograph
3. KRA PIN Certificate
4. 3 years audited books of account
5. 1 year bank statements
6. Certified copy of partnership deeds (for partnerships) and Rental schedules (for landlords)

Fees & Rates

1. Commitment Fee of 1.5%
2. Valuation fee of approximately 0.5%
3. Legal Fees of approximately 1-2%
4. Stamp duty of 4%

KCB bank

The KCB is one of the biggest banks in Kenya, with a strong capital and assets base that provides a home loan.

KCB home loans features:

1. Appraisal fees at 2.5% of loan amount
2. Ledger fees of Kes 350 per month
3. External Application Fees
4. Mortgage Plus Fees
5. Negotiation Fee of 2.5% of loan amount
6. Ledger Fee of Kes 350 per month.
7. Legal and valuation Fees
8. Stamp duty at 4% of cost of property or value on the open market
9. Stamp duty on charge at 0.1% of loan amount
10. KCB can finance insurance premium
11. Charges are not inclusive of tax

Visit their website to find out more about KCB KCB loans 

NCBA bank 

NCBA home loans features

1. Competitive Mortgage interest rates
2. Friendly loan terms
3. Loan repayment periods of up to 25 years.

Features

1. Mortgage loan facilities of the loan amount in local currency, 1.5% of the loan amount in foreign currency.
2. They offer NCBA mortgage loans in Kenya Shillings, Dollars, Pounds, and Euros.
3. 105% Financing of property value or market price, whichever is lower.
4. Maximum term of up to 25 years.
5. They calculate home loan Interest on a reducing balance basis.

Stanbic Bank home loans

Stanbic Bank home loan features:

1. Up to 105% finance of properties below Kes. 20M
2. Up to 100% of finance for construction of single residential houses below Kes. 20M
3. Loan tenure–up to 20 years (240 months)
4. Debt to income ratio–should not exceed 50% of net salary
5. Minimum loan amount–Kes. 1M
6. Minimum property value–Kes. 3M
7. Free cover limit for loan amount Les. 30M and below
8. Only available to salaried customers in local currency

Visit their website to read up more 

General requirements for a home loan

1. A completed and signed mortgage application form.
2. Your Original ID/Passport (plus copies)
3. 6 months certified bank statement.
4. 3 months’ pay slips.
5. Sale agreement or letter of offer(for purchase mortgage only)
6. Letter of introduction from an employer.

Benefits of home loans

Benefits of home loans include:

1. Easy repayment 
2. Mortgage cover
3. Fire insurance cover from some lenders 
4. Longer repayment duration 
5. Tax relief from some financial lenders.

Simple ways to make easy repayment 

Ways to make easy repayment of home loans:

1. Pay a down payment of over 20%
2. Make a part payment
3. Go for short tenor repayment duration 
4. Choose a lender with low interest rate
5. Never miss your monthly repayment 
6. Take advantage of home tax exemption

How to repay home loans

There are general ways of repaying home loans. Different lenders have different ways of collecting their loan repayment. They include:

1. Login or locate your M-Pesa account 
2. Select paybill 
3. Enter the business number
4. Enter your phone number as your account number 
5. Type in the amount you want to repay
6. Enter M-Pesa pin
7. Confirm details and press ok
8. Repay your home loan

Note: you can also repay through your bank account. By writing a standing order to your bank or transferring directly to the lender’s account. 

Conclusion

During the home loan application process, it is pertinent that you reveal all information which applies to your personality. Be true with it. Know what you are going for and every single detail. If not, they might reject your Home Loan application. If you are not sure about your eligibility, you can use Home Loan Eligibility Calculator to avoid Home Loan rejections.

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

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

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

What is a Loan?

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

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

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

Objects of Loan Contracts 

Contracts of loans includes objects like:

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

Types of Loans

Types of loans include:

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

What is an advance 

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

Facilitation in advances 

The key facilitation of advances includes:

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

Types of Bank Advances 

Types of bank advance we have are:

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

Conclusion 

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

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

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