Payday loans were designed to make credit more accessible to Kenyans. Are you looking for a personal loan that would offer you cash quickly? In this article, we explore in detail the payday loans in Kenya. We have profiled some payday loans, providing details about their credit.
What is a Payday Loan
It is a credit received the same day you applied and repaired within 30days. Basically, in Kenya the amount range from Ksh. 500 to Ksh. 70,000. You can as well call it personal or short-term loans in Kenya.
About Payday Loans and Lenders
A payday loan is a short-term personal credit for a lesser amount of money. You receive it same day you applied. You can apply online, through the app or at the storefront.
A lender charges an interest rate to the principal amount. If you are unable to pay back the loans, the lender might extend the payment and add an extra fee to the original fee.
- Paid to you the same day you applied
- Comes with lesser amount you can repay
- Have a wider range of 30days to repay
- Can come with loan extension repayment duration.
- It is an expensive form of financing
- High interest rate.
Requirements for payday loans in Kenya include:
- 18years and above
- Have M-Pesa account
- Some requires a Facebook page for identity
- National ID
How to get payday loans in Kenya
To get payday loans in Kenya, follow the steps below:
- Download your preferred app and install it
- Sign up on the app by supplying your personal information
- Request for a loan and provide your M-Pesa account details
- Receive your loan once you qualify.
Why commercial banks prefer to lend payday loans
Commercial banks prefer to lend this credit because of the following reasons:
- Shorter time for incurring interest.
- Quick funding time and its accurate future forecast.
- It is an unsecured loan that is easier to give.
- It is less risky which is thus preferable to commercial banks
- Liquidity ratios and cash reserves ratios of the Central Bank reduce long-term lending, leading to payday loans. Giving such loans helps them meet the requirements of the central bank.
How to Repay Payday Loans in Kenya
You can repay the loan from your M-Pesa platform, by:
- Launching your M-Pesas tool kit
- Selecting Lipa na M-Pesa
- Choose paybill number
- Enter the lenders paybill number
- Input the loan amount
- Type I’m your M-Pesa pin
- Tap “Submit” and have your loan repaid.
If you need to borrow money, there are many options available, but the first thing to consider is whether you will be able to get the loan the same way you applied.
Other factors to consider are the features of the loan, eligibility, and requirements. As long as you meet the criteria, you can apply for the loan and get cash to solve your emergency needs.