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.
Let us explore some banks in Kenya that give 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:
- Commercial Bank of Africa: they offer SME loans without collateral to young entrepreneurs and other businesses. With flexible repayment terms and less interest rate.
- KCB bank Kenya: KCB bank Kenya offers personal and SME loans to businesses. A repayment period of 12months with 9% interest rate
- Diamond Trust bank: you can access personal, business and salary advance of up to Ksh. 30,000 to Ksh. 250,000.
- 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.
- NIC Bank: they render quick loans to customers daily. Open an account with them and have a strong means of repayment.
- National Bank of Kenya
- Standard Chartered Kenya
How to apply for bank loans without collateral.
- Visit the bank’s website or office and fill the application form
- Apply for the loan and supply all personal details
- Submit all necessary documents
- 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:
- Be 18years and above with proof of strong income, cash flow and business record.
- Posses a national ID
- Have a valid phone number
- Strong credit history
- 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:
- National ID card
- 6 month’s statement of account
- Business record, licence and certificates for business loans
- Passport photograph
- 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:
- Personal loans
- Unsecured loans
Other loans you can get from the bank without collateral
- Business loans
- SME loans
- Salary advance
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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.