M-Pesa is an outstanding mobile money service in Kenya, and it is the most preferred platform for payment. Mobile payments are rapidly taking over with M-Pesa loans dominating the market. It acts as a financial service provider for Kenyans who have an option of sending and receiving money and applying for loans. M-Pesa is the most affordable way to handle money transfer and loan applications.
Let us explore M-Pesa loans in Kenya.
Vodacom and Safaricom own the M-Pesa brand. It started officially in 2007. The new joint venture done in early 2020 was to speed up its growth. Customers register for the services and perform different transactions like loan apps and other things. Instant loans from M-Pesa can get you a loan with a maximum of Ksh.500 to Ksh.50000 without collateral.
Pros and cons
- It is easy to access online M-Pesa loans
- M-Pesa account is cheap and easy to use
- Used and accepted in Kenya
- A local means of payment when you do not have a bank account
- They built your M-Pesa Sim to automatically use the apps.
- The apps built by M-Pesa is popular in Kenya.
- They often hinder instant loans when you do not have an M-Pesa account. However, buy the M-Pesa sim and register and use it for six months to be eligible.
M-Pesa loans applications
They created a lot of apps to handle M-Pesa services and transactions. Once you apply for a loan on the platform, your money will be in your M-Pesa account within minutes. The M-Pesa loans application includes:
KCB M-Pesa loan
Registered customers of M-Pesa go for the loan services of KCB M-Pesa loans. You can deposit and withdraw through the services. You can also get a loan between Ksh.50 and Ksh. 1million based on the loan limit you qualify for. You need a Safaricom Sim already built to house the app and they charge your loans at 3.6% interest rate.
M-shwari loan app
As an M-Pesa user you borrow on this platform at an interest rate of 7.5% monthly. It is a Safaricom product in partnership with Commercial Bank of Africa (CBA) to give loans. Without being an active user of M-Pesa for six months, you can use this service. Borrowing on the app depends on your usage of Safaricom services.
Tala loan app
Tala is an online mobile M-Pesa loan app for all citizens of Kenya. The credit history is looked before approving your loan on this app. You can get an amount range of Ksh.500 to Ksh.30000 with an interest rate. Download the app from Google play store and you can repay your loan through M-Pesa paybill number. There are options for 7days and 30days for loan repayment.
Branch loan app
They are a product of Branch International which was established in 2015. To start using the app, download it from google play store and create an account on the app. Your Facebook account, Safaricom mobile number and National ID is needed. Moreso, you can get between Ksh.250 to Ksh.50000 and can repay with M-Pesa paybill number.
Timiza loan app
The amount of loan to get on this app depends on your M-Pesa history. It is an App by Barclays bank in Kenya. You can access up to Kshs.150,000 with an interest of 6.17%. A maximum repayment term of 30 days. The loan limit is often displayed on the app and you can not exceed the loan limit during loan application.
Haraka loan app
They provide instant M-Pesa loans to citizens of Kenya between the ages of 18years to 60years. You can access Ksh 500 to Ksh 5,000, with a repayment tenure of 30 days. An interest rate of 23% is charged. The loan app is owned by a South African lender called GetBucks. They also offer their loan services to other parts of African countries.
Opesa loan app
To use this device, you have to download the app and register using your M-Pesa number. Loans between Ksh.500 to Ksh.3000 which the interest rate depends on your loan amount. You can do loan repayment through your Opesa loan app or through M-Pesa platform. Opesa loan App is built and owned by Tenspot Kenya Limited to Kenyans to get loans via M-Pesa.
Shika loan app
Shika is a mobile loan app that offers quick loans in Kenya via M-Pesa. You need an active register M-Pesa sim to access the loan. They disburse the loans within minutes to your M-Pesa account. In addition, a loan range of Ksh.500 to Ksh.20000 is accessed with an interest rate of 15%. They charge a fee on late repayment. When you refuse to pay within a period of 3months, they will list your name to CRB as a defaulter.
Saida loan app
They transfer your fund directly to your M-Pesa account upon loan application and approval. A good credit history is the basis of loan approval. Saida interest rate is between 7.5% to 10%. A minimum range of Ksh.600 to a maximum of Ksh.100000 is accessed with a repayment period of 30days. Repayment of your loan can be done through Lipa Na M-Pesa via pay bill number 854400.
Note: You can access online M-pesa loans directly on the lender’s website by downloading the app on your phone.
How can I get a loan from M-Pesa
To apply for loans from M-Pesa, follow the procedure:
- Launch the M-Pesa menu.
- Choose Loans
- Select the M-Pesa platform you want to use. E.g. M-Shwari, KCB, etc.
- Apply for the Loan.
- Enter the loan amount.
- Input your M-PESA PIN.
- If approved the fund will be sent to your M-PESA Account.
Eligibility for M-Pesa loan
The eligibility needed for online M-Pesa loans include:
- Be 18years and above
- Have a national ID
- Have an M-Pesa account as some app would require that.
- Possess an M-Pesa sim which has been active for a period of six months.
- Have a good credit history. For first-time applicants, do not delete your device transactions and history. Some apps judge your application based on that.
What happens if you do not pay any of your M-Pesa loan on time?
However, In the event that you do not repay your M-Pesa loan on the due date, you will be liable to pay a late penalty fee on the amount.
How to repay M-Pesa loans
To repay online M-Pesa loans, follow this method:
- Launch your M-Pesa toolkit
- Chose lipa na M-Pesa
- Select paybill
- Enter the M-Pesa paybill number for that app
- Enter your phone number as your account number
- Cross check all details
- Input your M-Pesa pin
- Hit the send option
- Get a notification that your loan was successfully repaid.
As M-Pesa evolved from a simple payment platform to an actual full-fledged Fintech company, it enabled lending for Kenyans. In Kenya and other African countries, M-Pesa is the highest champion in mobile payments. Their services have expanded to other loan apps using M-Pesa since they launched M-Shwari, a smartphone app, in 2012. M-Pesa is widely known and used in Kenya.