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.

Notwithstanding the risks involved, some banks give loans to their customers without collateral. They look at your excellent credit history, strong income proof, and long relationship with them.

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:

1. Commercial Bank of Africa: they offer SME loans without collateral to young entrepreneurs and other businesses. With flexible repayment terms and less interest rate.
2. KCB bank Kenya: KCB bank Kenya offers personal and SME loans to businesses. A repayment period of 12months with 9% interest rate 
3. Diamond Trust bank: you can access personal, business and salary advance of up to Ksh. 30,000 to Ksh. 250,000.
4. 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.
5. NIC Bank: they render quick loans to customers daily. Open an account with them and have a strong means of repayment.
6. National Bank of Kenya
7. Standard Chartered Kenya

How to apply for bank loans without collateral. 

1. Visit the bank’s website or office and fill the application form
2. Apply for the loan and supply all personal details 
3. Submit all necessary documents 
4. 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:

1. Be 18years and above with proof of strong income, cash flow and business record.
2. Posses a national ID 
3. Have a valid phone number
4.  Strong credit history 
5. 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:

1. National ID card
2. 6 month’s statement of account 
3. Payslip
4. Business record, licence and certificates for business loans
5. Passport photograph
6. 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:

1. Personal loans 
2. Unsecured loans 

Other loans you can get from the bank without collateral 

1. Business loans 
2. SME loans
3. Salary advance

Other Related Links

• Secured loans in Kenya – Meaning and what you should know
• Unsecured business loans in Kenya
• Type of loans in Kenya you can apply for in 2021
• Unsecured loans in Kenya – Everything you should know
• Business Loans in Kenya- Everything you need to know

Conclusion 

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.

Let us learn how to apply for quick loans in co-operative bank Kenya. Many people in Kenya, both salaried and non-salaried, have different needs in life. Some of these needs tend to be urgent and require swift action, while others seem to need slow action.

Kenyans seek money in different places. Individuals with bank accounts take salary advances and loans from banks and pay back after they get paid.

This is therefore why Co-operative Bank of Kenya understands this and has therefore made provision for loans for various needs of Kenyans. 

About Co-operative bank loan

The Co-operative Bank of Kenya is a publicly listed bank, aiming to be Kenya’s foremost bank with a strong national presence. Incorporated under the Company Act in 1965 and also licensed to carry out banking business under the Banking Act in Kenya.

Subsequently, companies of Co-operative bank Kenya runs three subsidiary companies, namely:

1. kingdom securities limited: a stockbroker with a 60% controlling stake in the bank.
2. The bank owns the fund management subsidiary Co-opTrust Investment Services Limited.
3. Co-op Consultancy & Insurance Agency Limited (CCIA): A subsidiary wholly owned by the bank that specializes in corporate finance, financial advisory, and capacity building.

How do I qualify for a co-operative bank loan Kenya?

1. 18years and above
2. Original National Identity Card
3. Original KRA PIN Certificate
4. Salary pay slips for the last 3 months.
5. Filled loan application form.

How to apply for co-operative bank Kenya loan 

To apply for co-operative bank loan, check round their website and download the form. You can also visit their physical branch and have then guide you on loan application 

Loans offered by the Cooperative Bank of Kenya

Loans offered by co-operative bank of Kenya are:

1. Personal loans 
2. Bizwise SME loans
3. Co-op bank Flexi loan (salary Advance)
4. Insurance finance loans

Personal loans

Personal loans offered by Co-operatives have been designed with features that facilitate the purchase of specific goods and services. In this regard, customers can get a Co-operative Personal Loan to buy shares on the NSE, to Top-up their loan balance to the original amount. To also finance the expansion of dairy production for dairy farmers or even for Sacco to on-lend to members.

Enhanced Benefits:

1. The Maximum borrowing limit for unsecured loan raised to Ksh. 3 million.
2. Maximum repayment period extended from 36 months to 60 months for loan amounts above Ksh. 100,000

Features:

1. Minimum loan amount of Ksh 50,000
2. Maximum loan amount of Ksh 4,000,000
3. Maximum term of 72 months
4. The purpose of the insurance policy includes education, medical, furniture, consumer durables, motor vehicles, plot purchase, holidays and shares.
5. Credit scoring serving as a determinant for the appraised value of applications.
6. Applications approved within 48hours.

Business/Bizwise SME loan

They provide small and new businesses the funding they need to grow. Small business owners can apply for the loan and the rates are affordable.

Their business expansion loan enables you to open new branches and launch new products. You can also finance the purchase of equipment, and purchase assets like land, buildings, and motor vehicles. The Bizwise SME loan can be up to 50 million.

Requirements:

1. Need the applicant to have operated a business current account in Co-op bank for at least 6 months.
2. Provide the bank with bank statements 
3. Business Registration documents such as a Certificate of incorporation, Memorandum e.t.c.

Co-op Bank Flexi Loan (Salary Advance)

Don’t worry about surviving a tough month with Co-op Bank. Co-op Flexi Cash lets you borrow between Kshs 3000 and 100,000 for emergencies or short-term expenses.

This product has an interest rate of 1.16% and is repayable for not more than three months. The Co-op Flexi Cash has no additional security requirements. And, if you apply through MCo-op Cash, you will not incur any facilitation fees. You must have an active salary account with the bank for at least six months to qualify for Flexi Cash.

Insurance Finance Loan

This loan is given to people with insurance policies who need to pay their monthly premiums. Essentially, a lump-sum premium payment is made to the insurer on your behalf by the bank leaving you to pay the loan back in simple monthly installments at very competitive interest rates. The bank also offers flexible repayment options between 4 months and 10 months.

Benefits:

1. The benefit of the loan is that it was tailored to fit the individual cash flow needs.
2. Funds are freed up, giving you the liquidity you desire.
3. Quick approval and simple application process, and no security required. 
4. The minimum amount to be financed is Ksh 15,000 and there is no maximum. 
5. Anyone can apply, and almost any insurance finance policy is covered. 

How to apply for Co-operative insurance Finance loan

You can apply at any Co-op bank branch countrywide or through your insurance broker.

The Co-op mobile banking App

Co-operative is banking on the mobile service to grow earnings from transaction charges. M-Co-op Cash charges a one-off seven per cent fee for secured personal loans between Sh100,000 and Sh200,000 repayable within 30 days.

Features of the app

1. Apply for a loan
2. Send money to other mobile money services, for example, M-PESA.
3. More than 100k downloads 

Co-operative bank loan Calculator 

The Cooperative Bank of Kenya loan calculator is available online to customers, and helps them calculate the total cost of the loan, the start and completion dates as well as the monthly installments. With a customized calculator, you can choose your repayment period and monthly installment for each loan type.

How to repay your co-operative bank loan

You can repay by funding your account and having the money automatically deducted 

Or

By visiting the bank and asking for a different option. 

How long does it take to process a loan in a co-operative bank?

The duration of the Co-operative bank loan usually depends on the type of loan one wishes, such as personal loans, business loans, SME loans, and others. Most loans are approved within 24 business hours. 

Conclusion

In Kenya, Co-operative banks are offering guaranteed loan approval all over the county. They are very different from the banks or those finance agencies where the loan applicants have to struggle a lot to borrow money.

Their application procedure is so simple and straightforward. Borrowers are free from documentation hassle. 

Co-operative bank has a team of loan experts and insurance finance brokers who have immense experiences in helping people out from their financial emergency.

In today’s challenging economy, the need for additional income sources has become crucial. The salary that once sustained individuals seven years ago is no longer sufficient, leading to a surge in self-employment, entrepreneurship, and small business ownership.

Watu Credit is a game-changer, empowering people through asset financing. They offer aspiring business owners the opportunity to own motorcycles, and three-wheelers (tuk-tuks), among other loan products, delivered efficiently and professionally.

This post covers everything you need to know about Watu Credit—its offerings, benefits, application process, interest rates, loan limits, and a comprehensive FAQ section to address all your questions.

Let’s delve in!

About Watu Credit 

Before diving into the application process, let’s get acquainted with Watu Credit

Watu Credit, more than just a lender, is a FinTech company on a mission to revolutionize financial inclusion across Africa, with a strong presence in Kenya, having 25 branches across the country. Their focus lies on empowering the unbanked and underserved population by providing them with the assets and resources they need to thrive.

Here’s what sets Watu Credit apart:

• Asset-Based Financing: Watu Credit prioritizes asset-financing solutions, meaning they provide loans for specific assets like motorcycles and business equipment. This approach can be beneficial as it reduces risk for both borrower and lender.
• Financial Literacy Advocate: Watu Credit understands the importance of financial education. They actively promote financial literacy programs to empower their clients and equip them to make informed financial decisions.
• Reaching the Underserved: Watu Credit prioritizes serving the unbanked and those with limited access to traditional financial institutions. Their services are designed to be accessible and cater to a broader range of Kenyans.

Watu Credit offers a variety of loan solutions, including Asset Financing for vehicles and equipment, Group Lending for short-term business needs, and Watu Simu for smartphone financing.

It takes pride in offering fully cashless services for both loan disbursement and collection, as well as 24-hour access for clients to their account balances.

How to Apply for a Watu Credit Loan 

Applying for a loan from Watu Credit can be a relatively straightforward process. You should know that it is a fully physical activity and you cannot apply online. Here’s a breakdown of the steps involved:

1. Choose Your Loan Product:

Watu Credit offers various loan options depending on your needs. Familiarize yourself with their offerings (e.g., Watu Gari for vehicle financing, Watu Simu for smartphones) and choose the program that best suits your requirements.

2. Check Eligibility:

Each loan program might have specific eligibility criteria. Ensure you meet the basic qualifications before proceeding with the application.

3. Gather Required Documents:

The necessary documents may vary depending on the loan type, but these should form the base of the needed documents:

• National ID/Passport
• KRA PIN copy
• Passport photograph
• Proof of income (6-months bank statement)
• Completed application form

4. Visit a Branch:

Watu Credit has over 25 branches in Kenya. Visit the Watu Credit branch closest to your location and submit the application form.

5. Await Approval:

Once you submit your application and documents, Watu Credit will review your request. The waiting time for approval can vary. They might contact you for further information if needed.

6. Loan Disbursement and Repayment:

If approved, Watu Credit will offset your payment for the asset, this is because Watu does not offer cash. They’ll also provide details on your repayment schedule and the preferred methods for making payments.

What are the Requirements for one to get Financing from Watu?

To qualify for a loan at Watu, they require one to have:

1. Valid National ID of both the Borrower and the guarantor
2. KRA PIN Certificate
3. Age 20 to 65 is the normal age. But from 18 to 19, must come with their parents.
4. They require 1 Guarantor aged 20 years and above
5. Need to make a down payment of Ksh. 10,000 for Motorbike financing and 50,000 for tuk-tuk financing
6. A valid 6-month Safaricom phone number.

How Long Does it Take to Get My Motorbike/Tuk-tuk Once I Complete the Application?

It takes just 2 hours to apply and get a motorbike/tuk-tuk upon application. However, in case of unforeseen circumstances leading to delay, the front office officer guiding you will notify you of the date.

Does Watu Credit Offer Cash Loans?

While Watu Credit excels in providing financial solutions, their offerings are cashless and lean more towards asset-based financing. This means they focus on loans tied to specific assets you purchase, rather than direct cash deposits.

The company offers credit tailored towards helping people purchase the 2 wheeler(Boda Boda) and the 3-wheeler Tuk-tuks .

To get a Boda boda through Watu Credit, you need to make a down payment of Ksh 20,000. The down payment for getting a Tuk-tuk is Ksh 50,000.

How do I check my Watu credit balance?

What is Watu’s Pay Bill Number for Weekly Repayments?

The official Watu pay bill number for weekly repayments is 650880. They do not accept cash payments.

How to Repay Watu Credit Loan

In repaying Watu Credit, follow the steps below:

1. Login to your M-Pesa account 
2. Select Lipa na M-Pesa
3. Choose pay bill 
4. Enter the pay bill number 
5. Use your phone number as your account number 
6. Input the amount you want to repay 
7. Cross-check all necessary details 
8. Press the submit option to submit it
9. Get a message proving a successful repayment of your loan

Watu Credit Offices in Kenya

1. Meru: Njuri Ncheke Street, Meru, Kenya
2. Kitui: Kibwezi – Kitui Road
3. Mombasa Road: Vision Plaza, Nairobi, Kenya
4. Nakuru – Eldoret highway, Nakuru, Kenya
5. B3 Road: Narok, Kenya
6. Tengecha Lane: First Floor, Room 101, Kericho, Kenya.
7. Silibwet Junction: Bomet, Kenya
8. Pioneer Business Center: Kisumu Road, Eldoret, Kenya
9. Jean-Marie Seroney Road: Kapsabet, Kenya
10. Kitale: Mak Asembo Street, Kitale,Kenya
11. Kisumu: Makasembo Rd, MURBS Building, Kisumu,Kenya
12. Kakamega: Kisumu-Kakamega Road, Kakamega, Kenya
13. Kisii: Kisumu Migori Road, Metro Hotel Ground Floor, Kisii, Kenya
14. Bungoma: Opposite Bungoma Governor’s Office Gate, Bungoma, Kenya
15. Voi: Car and General Voi, Voi, Kenya
16. Mumias: Mumias musanda Road, Mumias, Kenya
17. Migori: A1 Road, Migori, Kenya
18. Homabay: A1 Road, Migori, Kenya
19. Siaya: Ragama Building, Siaya, Kenya
20. Malindi: B8 Road,Malindi, Kenya
21. MbaleKaburu Complex: Maua, Kenya

Conclusion

Watu Credit Limited is a micro-finance institute emerging as a specialised sustainable and inclusive finance. Part of their mission is also to share and contribute to the sustainable development of the economy.

They provide access to capital to the benefit of micro, small, and medium enterprises. In serving customers well they contribute a focused value, principles of independence, integrity, and transparency. 

Frequently Asked Questions

How do I check my balance on Watu?

There are two ways you can check your loan balance on Watu. The first is:

• By dialing *876# and following the instructions. Ensure you are using your registered phone number. Note that standard SMS/call rates charged by your mobile service provider may apply on checking the balance.
• You can visit any of Watu’s branches to check your balance or call 09011117770.

What is Watu credit Paybill number?

The Watu credit Paybill number for weekly payments is 650880. This paybill number is used through M-PESA, Tigo Pesa, and Airtel Money.

How do I contact Watu Credit?

To contact Watu Credit, you can use the following contact information;

Phone Numbers: +254 790 000 999 or +25 709 739 000, +254 719 111 000.

Email address: info@watucredit.com.