Whether you’re dreaming of a new car or a home, or simply need funds to assist your personal needs in financial rainy days, a loan can be a game-changer. However, navigating the world of loans can feel intimidating because of the numerous options available.
Fear not! If Equity Bank has caught your eye, you’ve clicked on the perfect blog post. Here, we’ll take a comprehensive look at Equity Bank, and break down the process of applying for Equity Bank loans. We’ll cover everything from loan options (think Eazzy Loans, personal loans, and even home loans!) to eligibility requirements and the application process itself.
So sit tight and get ready to unravel important information that will inform your loan decision. By the end of this post, you’ll be armed with the knowledge and confidence to tackle your financial goals head-on!
About Equity Bank Loans
Equity Bank was established in 1984 and has grown aggressively to become the largest bank in the region in terms of customer base. Equity’s goal is to empower and elevate grassroots communities throughout Africa.
Equity Bank offers a diverse range of loan products tailored to meet the varied needs of its customers. Whether you are an individual seeking personal financial assistance, a homebuyer looking for a mortgage, or a business owner in need of capital, Equity Bank has a loan solution designed to support your goals.
Types of Loans in Equity Bank
Equity Bank offers a diverse range of loan products tailored to meet the varied needs of its customers. They fall under six categories, here’s the breakdown:
Categories | Types of Loans |
Personal | Home Loans, Equity Assets, Maji Loan, Equiloan, Salary Advance, Eazzy Loan, Plot Loans |
SME/Small Business | Mortgage Finance, Trade Finance, Eazzy Loan, Equity Assets, Asset Finance, Construction Loan, Agent Float Financing |
Agri-Business | Commercial Agriculture Loan, Micro Agribusiness Loan, Seed Production Loan, Farm Inputs Loan |
Corporate | Trade Finance, Asset Finance, Construction Loan |
Chama/Group | Micro Business Loans, Water Loan, Sanitation Loan, Insurance Premium Financing, Chama Investment Loan |
Diaspora | Diaspora Credit Cards, Plot Purchase & Equity Loans, Construction Loans, Residential Mortgage & Equity Loans |
Let’s take a look at the common loan types
1. Equiloan
Equiloan is tailored for salaried individuals who hope to finance development projects and whose employers have signed a Memorandum of Understanding (MoU) with Equity.
Features:
- The loan amount ranges from KSh 100,000 to 5 million
- They grant the benefit to customers whose employers have an agreement with Equity Bank on the check-off arrangement.
- The interest rate ranges from 11% to 13%, with a processing fee of 6%.
- A customer’s ability to pay determines the maximum amount lent.
- The repayment period ranges between 6 months and 72 months.
Application Process: Requires a visit to an Equity Bank branch to complete the necessary paperwork. Loan repayments are made via monthly auto-deductions from the borrower’s salary
2. Salary Advance
Equity Bank offers a Salary Advance product tailored for salaried customers needing short-term emergency financial assistance. Here are the key features and details:
Features:
- The loan amount can go up to KSh 300,000.
- Applicants must have an active Equity Bank account with at least three months’ salary remitted to it.
- A Confirmation or Introduction Letter from the employer is required.
- A repayment period of up to 12 months.
- The interest rate ranges between 11% and 13%.
- Additional costs include a processing fee of 6% and a late payment fee of 5%.
3. Asset Finance
Equity Bank’s Asset Finance product is designed to help individuals and businesses acquire movable assets such as vehicles, and equipment. Here are the main details:
Features:
- The loan amount is based on the customer’s ability to pay.
- There is a loan period of up to 60 months (5 years) for used vehicles and up to 120 months (10 years) for brand-new vehicles.
- Up to 100% financing.
- Financing is available for up to 95% of the asset’s value.
- The loan has flexible repayment periods ranging from 12 to 60 months.
- Proof of income and ability to repay is required, including bank statements and other financial documents.
- Depending on the asset and borrower profile, additional collateral may be requested.
What you require signing up:
- Three original latest payslips
- 2 Copies of the ID & PIN certificate
- An Introduction/Appointment/Confirmation letter from the employer
- Duly signed authorization forms
- Duly completed loan application and appraisal form
- Pro forma Invoice / Sale Agreement
- Valuation Report
- Original Log Book
4. Eazzy Loan
The Eazzy Loan is designed to provide quick and easy access to funds without the need for guarantors, forms, or branch visits. Get up to KSh 3,000,000, instantly on your mobile via the EazzyApp or by dialing *247# where you can monitor your loan balance and make repayments.
Features:
- Loan amounts range between KSh 1,000 and KSh 3,000,000
- It offers a flexible repayment period of up to 24 months
- Funds from the facility are instantly available in your account
- Eazzy Loan has a daily interest rate of 1.5%
What you require to sign up
- To qualify for this loan, you must have an active Equity bank account for the previous 6 months.
5. Development Loans
Equity Bank’s Development Loans are designed to support SMEs by providing the necessary capital for business expansion and asset acquisition. These loans are tailored to meet the financial needs of small and medium enterprises (SMEs) in various sectors, including transport, trade, construction, manufacturing, education, and health services.
Key Features:
- Eligibility: Active account holders with Equity Bank.
- Purpose: Financing business working capital and operational needs.
- Submission of loan purpose and demonstration of other income sources for loan repayment is required
What you require signing up:
- Copy of PIN certificate of the company
- Memorandum and articles of association for companies registered prior to 2015
- Copy of ID/passport for all directors
- KRA PIN certificate for all directors
- Latest annual returns and CR-12 and a filing receipt from Registrar of Companies office
- Current tax compliance certificate
6. Micro Business Loans
Micro Business Loans from Equity Bank target the youth, who form a significant portion of Kenya’s population. These loans aim to empower young entrepreneurs by providing them with the financial tools needed to start and grow their businesses.
Key Features:
- Loan targeted for youth aged 18-35 years who are Equity Bank account holders.
- its purpose is to fund working capital, purchase fixed assets, improve business premises, and support agricultural ventures like dairy and horticulture.
- Business training and advisory services tailored to the specific needs of young entrepreneurs.
Equity Bank Loan Requirements
To qualify for the equity bank loan, here are a few minimum requirements that cover all loans:
- Completed loan application form
- Proof of identity such as a national ID card, passport, or driving license
- Proof of income that demonstrates income stability and repayment ability
- Recent bank statements, typically for the last six months.
How to Apply For a Loan From Equity Bank Via Equity Line
Follow these steps to get a loan or an equity loan from Equity Bank Kenya:
- Go to the Equitel menu.
- Select My Money.
- Choose Loans.
- Tap Get Loan.
- Provide the Loan Type.
- Input the Account.
- Confirm Details.
- Enter PIN.
Conclusion
Early in the pandemic, many lenders like Equity Bank filled the gap left by the government by providing loans to the people.
Equity Bank is here to serve you better and has many options you can tap from. Tap from the information and enjoy the benefits that come with this loan platform.
Frequently Asked Questions
1. How do I get in touch with Equity Bank?
Contact them through their mobile at +254 763000. You can also speak up by emailing them via info@equitybank.co.ke