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10 Mortgage providers in Kenya (2024)

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Mortgage providers in Kenya are digital platforms that provide a broad range of professional services, including mortgages to individuals and corporates, loan consultations, and legal advice.

They are offered by banks, building societies, and non-bank financial institutions. Let us explore 10 mortgage providers in Kenya in 2024

What is a mortgage?

Simply put, a mortgage is a long-term loan given to help you buy a house. Financial institutions offer the products, including banks, microfinance agencies, SACCOS, and building societies.

What you need to get a mortgage loan in Kenya

When getting a mortgage, providers will explain all you need to qualify and be eligible for the loan. Listed below is a mortgage checklist you will need to complete.

  1. A carefully signed mortgage application form
  2. Original copies of your identification documents like your ID or Passport
  3. An introduction letter from your employer (This is for the employed)
  4. 3 months’ payslip
  5. 6 months certified bank statement 
  6. Letter of offer or a sales agreement (when you are looking to purchase)

10 mortgage providers in Kenya

Here are some of the top mortgage providers in Kenya, and what they charge as the average annual interest rate. You might want to check them out when looking to buy your dream home.

BankInterest Rate (p.a.)Maximum Repayment Period
1. Standard Chartered18%20 years
2. Citibank Kenya12.5%20 years
3. Commercial Bank of Kenya12.9%Not specified
4. KCB Bank9%25 years
5. NIC Bank Kenya14.1%20 years
6. CFC Stanbic Bank Kenya14.4%10 years
7. Barclays Bank of Kenya14.4%25 years
8. Co-operative Bank9.9%20 years
9a. Consolidated Bank (Residential)9.87%15 years
9b. Consolidated Bank (Commercial)11.87%15 years
10. Housing Finance Group9.5%20 years

Ownership of mortgage 

In the event of a mortgage, they split ownership into two, which are:

  1. Equity: What you owe as an individual or a business
  2. Debt: This is what the bank owns 

As a result, when you make mortgage payments, you buy more equity and you own the property in the end.

What do mortgage providers consider 

Mortgage providers look at a lot of things before taking you through the process. Much like any other loan product (loan app or not), the lender will look at:

  1. Your credit score
  2. The home price and the loan amount,
  3. The down payment,
  4. The loan term, and
  5. The loan type 

Types of mortgages in Kenya

In Kenya, there are two types of mortgages, they are:

  1. Fixed-rate mortgage and
  2. Adjustable rate mortgage

Fixed-rate mortgages 

In this type of mortgage, the interest rate is fixed till the whole repayments are done. It is more expensive because the amount remains the same during the lifetime of the loan.

Adjustable rate mortgage

The interest rate in this type of mortgage keeps changing depending on the market structure. The loan repayment keeps reducing. It is the most common type of mortgage operated in Kenya.

The reason for the changes in the interest rate is because they transfer the part of the risk of the loan to the borrower.

Read also all you need to know about the 5c’s of credit.

Conclusion 

A mortgage is a loan that enables an individual to buy the house of their dreams. Getting a mortgage is even more rewarding when you can take advantage of competitive interest rates and flexible payment plans.

Mortgage providers in Kenya provide home loans for both commercial and residential properties.

Usawa Loan App – How to Apply And Download The App And USSD Code

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If you are looking for fast and convenient means to get loans in times of emergency, Usawa loan app could provide the best alternative. Usawa is one of the best mobile loan service providers in Kenya.

You can apply for a loan from the comfort of your home with your smartphone or mobile device.

However, you must be a Kenyan or live in Kenya to be eligible for Usawa loan. Since its debut, Usawa has received 10,000 downloads with over 1000 active users. 

usawa-loan-app

What you need to apply for Usawa loans 

Most individuals are often sceptical about accessing loans because of the dodgy terms associated with some financial institutions.

That is why we have taken our time to enumerate everything you need to know about Usawa loan to clear your doubts. 

Here are some requirements for applying for Usawa loan.

  1. You do not need to have a bank account before applying for Usawa loan.
  2. An Android phone to download and install the Usawa mobile app.
  3. A registration fee of 400 Kenyan Shillings to activate your account.
  4. Aside from the registration fee, they do not require you to bring any form of collateral to acquire the loan.
  5. You must be resident in Kenya and have a Kenyan passport or ID number to be eligible for the loan.

How to Apply For Usawa Loans 

Once you have fulfilled the criteria listed before, then you are ready to get your Usawa loan. To successfully apply for a loan on the Usawa mobile app, you need to take the following steps below:

  1. Download and install the Usawa mobile app from their website or Google play store
  2. Create an account with the necessary information required
  3. To activate your account, you must pay the mandatory registration fee of 400 Kenyan Shillings. 
  4. Then, you can apply for your loan.
  5. Submit your application.
  6. When your loan is approved, you will receive a notification. Usawa will then deposit the funds into your M-Pesa wallet on the app. 

As a first time user, you may not be qualified to apply for some loan amounts. Usawa will request that you fill a questionnaire which will determine your loan amount and pay the membership fee as well.

Usawa Membership Fees And Paybill

The Membership fee for Usawa loan is KES 400. All members who pay the membership fees qualify for the first loan. You can pay via M-pesa following the steps below:

  1. Launch M-Pesa on your phone 
  2. Choose paybill number 
  3. Type in the paybill number as 138103
  4. Enter your phone number as your account number 
  5. Input your M-Pesa pin
  6. Wait for a confirmation SMS from M-Pesa

Usawa Loan Interest Rate

The interest rate for the Usawa loan is 12%. They charge this on each amount you apply for.

Usawa Loan Repayment Period

Usawa has a repayment duration of 91 days minimum and 36 months maximum 

Minimum and Maximum Loan Amount For Usawa Loan

The quick Usawa loan platform offers loans ranging from Ksh. 500 to Ksh. 1,000,000. As you progress, the loan limit increases.

Usawa USSD Code

You can dial *483*012# to register and apply for the loan. Those who cannot download the app on their phones or those who do not own a smartphone mainly use the USSD code. 

How to Download Usawa Loan App

The procedure below is the steps you can follow to download Usawa loan app:

  1. You can download the Usawa loan app by visiting the website or Google play store.  
  2. Click the application and then select install to download the app
  3. Proceed to create an account on the app
  4. After that, you can start applying for loans.

How to Repay Usawa Loans

Usawa loans are strict with their repayment policy. After receiving your loan, you must pay back on or before the due date as late repayment attracts extra charges.

You can pay back your Usawa loan through your M-Pesa Paybill with these simple steps:  

  1. Log into your M-Pesa through your Safaricom SIM Toolkit. 
  2. Select the ‘Lipa na M-Pesa’ option on the menu bar.
  3. Type your Usawa Paybill Number into the available column. The official Paybill Number for Usawa is 138103. 
  4. Input your M-Pesa phone number in place of your account number. 
  5. Next, fill the loan amount you want to repay. 
  6. Then, type your unique M-Pesa pin. 
  7. Cross-check your details before submitting your payment. 

How to Contact Usawa Loans

If you encounter any challenge while applying for your loan, you can contact their customer care agents through these channels:

i. You can call or send an SMS to +254790639990

ii. Or email admin@usawa.co.ke

iii. You can also check out their website.

Conclusion

Usawa serves as a source of financial aid for individuals who cannot meet the rigid terms and conditions of obtaining loans from banks.

It is easily accessible and repaying your Usawa loan on time increases your credibility to acquire more loans. You are also qualified and eligible to apply for larger loan amounts if you pay on time.

Importance of loan and financial literacy- Explanations

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Need to know about the importance of loans and financial literacy? You have never been taking loans seriously? Don’t care when banks would call you up and try to sell you on a credit card, or personal loan?

You weren’t looking to buy a car or a house, so what is the point? Having knowledge about loans and finance matters. Don’t wait until you decide to open up a small business loan to start taking a serious look at money, loans, and finances.

Read along with me to find out the importance of loans and financial literacy.

Importance of loan and financial literacy

What are loan and financial literacy?

Loan and financial literacy are important for everyone. It encompasses a general awareness of money matters and financial decision-making that affects you, your family, and your community.

Everything you need to know about the importance of loans and financial literacy

Loan and financial literacy are the keys to financial empowerment. Yet many people are not financially literate. Financial literacy is important not just for individuals, but for our country as a whole.

We should make this a requirement instead of an elective subject in high school. People need to focus on financial literacy courses as much or even more than they focus on driver’s education courses when they are young.

Also, in an age where most people have to pay for their own education, debt is almost always a factor. Some students graduate with exorbitant amounts of debt or loans that they might not even be able to repay until after they are finished with college and have started working.

I guess equipping yourself with the knowledge of how the loan and finance system work, will be of great benefit.

Importance of loan and financial literacy

Good loan and financial literacy are vital to any person’s protection, security, and well-being. But with building positive loan repayment and financial habits, and understanding the numbers and not just the theory, matters a lot. The following are the importance:

  1. Loan and financial literacy will help you develop important money skills for life, understand your credit score, day-to-day cash flow, and how to save and invest money.
  2. When faced with financial problems or choosing the right debt products, you will be equipped with the savvy, knowledge, and self-confidence needed to deal with them effectively and positively.
  3. No matter your occupation, one thing is true, you need to manage your money at some point. Therefore, it helps in money management.
  4. Whether you are a college student looking to pay down student loans, knowledge of loans and finance is needed.
  5. Looking to save for a home or even further in the future, I guess once in a while, take loans, so you need to know how it works
  6. If you have a retirement account, having some level of loan and financial literacy under your belt is important. This is especially true now that you can literally conduct your life and finances with a cell phone.
  7. It is easy for people to make mistakes with their money, loans, and finances, where even simple actions like misreading an invoice can cost you thousands. So watch out and learn all it takes to avoid making mistakes a second time.
  8. With the knowledge of loans and finance, you will find out that inflation has not been as positive as it appears at first sight. Most times inflation and other factors might affect your finances and force you to take loans.

How to get be loan and financial literate

Where can you start from? With regards to understanding loans and personal finance, to start gaining the knowledge, start from:

  1. Knowing the basics of loans and finance.
  2. This can be followed by understanding the basics of credit scores, debts products, and investment strategies.
  3. This can also be followed by gaining insight into how to manage credit scores, knowing about debt consolidation, and managing loans and money.
  4. Get links from reliable sources online and offline, which can help you in getting started with understanding personal loans and finances.

What loan and financial literacy is not?

Loan and financial literacy does not just mean knowing how to sign a cheque or filling in the right paperwork for getting a loan. It is about knowing the basics of money.

How banks work, how financial markets function, and so on. Our ability to make sound economic decisions depends significantly on the level of our education and knowledge.

Tips on knowing that you are loan and financially literate

Loan and financial literacy can include but are not limited to:

  1. Understanding and knowing the importance of how to budget one’s finances to avoid taking loans.
  2. Having deep knowledge of savings and investments.
  3. Knowing the basics of the credit system, debt products, and debt repayment
  4. Understanding the basics of laws that govern finance
  5. Have a basic understanding of your income, expenses, and savings, ready for emergencies and retirement.
  6. Understanding what outstanding debts, assets, and other basic financial health indicators mean
  7. Knowing the basics of taxes and their elements
  8. The basic understanding of inflation, profit, loss, growth, de-growth, appreciation, and depreciation.

Conclusion

This article exposes everything you need to know about the importance of loans and financial literacy. Since money and its need is indispensable, it is recommended you reflect upon the importance of loan and financial literacy. 

Unfortunately, most of the formal education systems across the world skip this essential part of education. It is hence easy to say that you need to focus on working towards being loan and financially literate.

How to be Certain About Getting a Loan During an Emergency

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How to be Certain About Getting a Loan During an Emergency? By identifying the easiest loan, legit lender, qualifying for the loans, and getting your documents ready.

Loans can feel like a last resort in an emergency. There are, however, many ways to make sure you are getting what you need to feel secure and keep your household afloat during hard times.

How to be Certain About Getting a Loan During an Emergency

What is an emergency loan?

An emergency loan is a short-term cash loan you can get quickly, usually 24 to 72 hours after you apply, in times of financial hardship. In emergencies, we all need money fast, and depending on your financial situation, an emergency loan may be a good fit. You can get 20000 worth loans sometimes

About how to be Certain About Getting a Loan During an Emergency

If you are planning to apply for a loan during an emergency, then there are things ‌you will need to prepare. These can include your financial records, bank statements, information about your property, and any other valuable assets that you have.

Besides these, you will also have to consider having some collateral for the loan should you cannot pay it back on time. If you have nothing of value at hand that is of use to a bank, then you can always consider getting your hands on some valuable items such as precious metals like gold or silver coin that can be converted into cash upon the need to pay off the loan.

What you need to know about being certain about getting a loan during Emergency

The worst time for an emergency is after you have used your emergency fund. A car accident or major home repair can wipe out crucial savings. 

How do you ensure that when you need money, even during times of emergency, you can get it? There are plenty of options to consider when it comes to loans in Kenya, but what you will want to find is the best one among the lot.

  1. Consider a short-term loan program
  2. Check out for Cash advance
  3. Loans from payday lenders e.t.c

How to be Certain About Getting a Loan During an Emergency?

If your credit score is suffering, it’s difficult to get a loan but the right lender can make all the difference. Here is what you need to know about the easiest loan to qualify for, securing a loan, managing a payment schedule, and ensuring timely payments.

When borrowing is chosen as the way forward, there are several options to note to be sure you will get a loan:

  1. Identification of a reliable direct lender
  2. Going for Payday Loans
  3. Requesting short-term loans from lenders
  4. Applying for a credit card loan
  5. Building your credit and applying for loans from the bank
  6. Loans from reliable family and friends

Apply for a short term Loan offering a Guaranteed Approval

Some loan lenders in Kenya provide guaranteed short-term or payday loan approvals for borrowers who qualify or who meet their basic eligibility criteria:

  1. Proof of income
  2. Be 18 years and above
  3. Proof of age
  4. Active bank account or M-Pesa account
  5. Valid phone number
  6. Residence address and utility bill
  7. National ID
  8. Passport photograph
  9. Some lenders would request your Facebook account

How Identification of a Reliable Direct Lender

During a time of emergency, watch not to apply for a loan with a dubious lender. Do thorough research even though you need the money urgently or you can read reviews online or ask your friends.

Determining the reliability of a lender is an important part of choosing a loan on its own. This is a quick and easy way to know that a lender is legit:

  1. Verify the online presence of the lender’s services on the web or via the app
  2. Then ‌read reviews about the lender online
  3. Try to avoid emergency loan brokers with the sweet mouth, as they can cause delays and issues
  4. Check out for other reviews and real feedback on the online lender’s services
  5. Look out for accreditations on the lender and their website security certificates
  6. Search for a contact number, address, and email ID of the lender that are present on the website and are valid enough
  7. Run from a lender that offers suspicious and constant bonanza and offers such as a “free one-month fee”, “50% off fees”, etc.

5 types of emergency loans

The type of emergency loans we go for should reflect our immediate needs. They are:

  1. Personal loans
  2. Cash advance
  3. Payday Loans
  4. Loans sharks or pawn shops’ loans
  5. Car title loans
  6. Payday alternative loans like short-term loans

What makes a loan ideal for emergencies?

There are many things you need to know that make a direct lender of a short-term loan or payday loan ideal for emergencies. They are:

  1. Some of these lenders guarantee approvals subject to loan eligibility and meeting requirements
  2. Lenders that can easily approve your loan and credit it quickly are ideal for emergencies
  3. A person with a very strong online presence because people prefer online loans as it is easy and quick
  4. A loan without more checks and delays can serve more people and save time, making emergency loans more workable
  5. Lan options with great flexible repayment options are more ideal than rigid ones.

Other searches- When is it Okay to take Small Personal Loans for Business

Conclusion

One way to ensure that you get a loan during an ‌emergency is to know your options. Asking from the government, friends, and from relatives are the best options.

But if you want to apply through a lender, then research different lenders so you can get the best offer. Also, be sure to mind your loan documentation process.

Commercial Loan Process – Application And Documentation 

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The commercial loan documentation process in Kenya is established by, and tailored to suit the needs of all borrowers, their requirements, and target markets.

The commercial loan processes are developed by diverse parties such as banks, financial institutions, and private funding agencies, who have come together to create a lending platform that best meets the needs of borrowers within the country. These kind are usually secured loans.

Understanding a Commercial Loan Process 

Commercial loan in Kenya can be availed from financial institutions like banks and microfinance institutions (MFIs). Banks on their part lend small businesses education facilities loans like student loans, micro credit services and any commercial money that is less than Ksh 10 million.

Going further with the process, even where a financial institution or bank is operating in compliance with the law, there are still times when an application for a loan will be turned down.

While this can be disappointing, it is important to note that many of these institutions adhere to strict criteria when it comes to reviewing loan applications. This is for the protection of both the bank and the client, as well as to ensure that funds are used responsibly and loans repaid.

 In the loan application process, the business must specify what the commercial loan will be used for. Then go further to supply other necessary information and adhere to all instructions. 

What is Commercial Loan Process

Typically, commercial loan process is the agreement and other legal closure between a bank and a business to fund both operating costs and capital expenditures of the business. They usually require collateral and financial statements to prove the company’s ability to pay.

What is a Commercial Loan?

The term “commercial loan” refers to any loan provided by a financial institution such as a bank to businesses. A commercial loan is a type of loan made to a company or an entrepreneur for funding their business or commercial projects. These loans help widen the reach of business enterprises by providing them with capital to fund their activities. 

Moreso, commercial loans help entrepreneurs grow and expand their businesses, by providing them with the required funds that they may lack through current assets. It is typically used to purchase long-term assets or to fund day-to-day expenses in a business.

Process for Securing a Commercial Loan

Commercial lending process steps is as follows:

  1. Qualifying stage and presentation of pre-approval documents 
  2. Loan application stage
  3. Review of loan application document stage
  4. Loan underwriter approval stage
  5. Presentation of the term sheet by the underwriter to the company stating everything about the loan for reconfirmation 
  6. Completing the loan packages, presenting the closing documents and signing.

What are the four loan documentation requirements banks need when granting a commercial loan request?

There is a lot of documentation required by banks when giving commercial loans. We are quite used to these requirements and they are usually provided while taking a business loan or home loan. When disbursing a commercial loan, one is required to produce certain documentation like:

  1. Documents for existing businesses
  2. Income statements and business balance sheets for the past three years.
  3. Projected balance sheets and income statements for two years.
  4. Cash flow forecast or Projected cash flow statements for at least the next 12 months.
  5. Personal and business tax returns for the last three years.

What other financials are needed for a commercial loan?

Before you can even think of getting a business loan, you have to know what financial documentation your bank requires. We have put together a comprehensive list of the most common financial banks require processing an application of commercial loan:

  1. Business Credit Score
  2. Basic Personal Information 
  3. Basic Business Information and Permits
  4. Two Years of Tax Returns, Both Personal and Business
  5. Recent Business Bank Statements

How long does it take to process a commercial loan?

Two to six weeks is an acceptable time for many commercial banks and microfinance banks. There are still banks that process it faster. 

3 Factors influencing the time to process a commercial loan

There are various factors that will influence the time to process a commercial loan. If a business has:

  1. Good financial standing
  2. Bankable and investable projects and
  3. Capacity to service the loan

Here, the process is supposed to be faster.

3 Limits to the processing time of commercial loans in Kenya 

Getting a commercial loan in Kenya is not an easy feat. Among the factors that affect the processing time for a commercial loan in Kenya are:

  1. The length of the borrower’s credit history
  2. The financial institution where the borrower chooses to apply for a loan and 
  3. Constant reminder by the borrower.

How much is a down payment on a commercial loan?

Most commercial lenders require a down payment of 30% before they consider or approve a loan.

Conclusion

Commercial loans are designed to promote business development in the country. However, with so many similar programs available and the ever-increasing demand for these loans by various organizations, banks and financial institutions have put in place conditions that have made it a little challenging for those looking forward to starting up a business.

Just like any other form of lending, getting a commercial loan requires an extensive application process. Just go through these processes keenly and you will get your money within a short while.

Credit note explained

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One of the crucial techniques when carrying out invoicing procedures is to use credit notes. A lot of persons and businesses are yet to harness this important tool when performing invoicing workflow because of inadequate knowledge of credit note.

The aim of this article is to educate our readers about credit notes, showing when and how to use them. In this discussion, we will reveal robust and helpful information needed to give credit notes. In addition, we will provide examples and samples and also differentiate credit from debit notes.

credit-note

What is a credit note?

Credit notes are commercial and legal documents which empowers someone (a seller) to nullify completely or partially an invoice given to a buyer. This is usually done by the seller because of mistakes, damaged goods or when a transaction is canceled. The importance of credit notes in business transactions cannot be over emphasized, as mistakes are bound to occur more often than not.

An example of where it is used is when a seller discovers that they damaged the supplied goods. He then issues a credit note to the buyer, reducing the amount to be paid for such goods by the buyer. It also provides a negative balance of an invoice.

For instance, assuming a customer initially paid the sum of ksh. 600 to the seller and the seller wishes to end such invoice, he or she will issue a credit note to the buyer for the negative value of – ksh. 600. Also, from the example above, if the seller overcharged the buyer in error by 10%, he will issue a credit note of -ksh. 60 (I.e. 10% of $500) to the buyer which corrects the mistake made in the amount issued originally to the buyer. Credit note is a way of compensating the customer for the defective goods supplied. provides the seller the room to delete his financial records without erasing the invoice 

Common Reasons for which Credit Note is issued

These are some circumstances under which they can issue it are:

  1. When the buyer discovers he has been charged by the seller below the actual price of product.
  2. If the seller discovers, he has overcharged in the transaction’s cause.
  3. The seller issues it when there is a return after sales.
  4. When the occasion of discount or benefit is to be given by the seller

Examples

The examples done below regarding credit note to show that the procedure for issuing it is not complicated as it might seem. Let us explore more with examples 

Example 1.

  1. Assuming company Z made ksh. 700 purchase of products from Company X and later discovered that there was a mistake on the invoice issued, which resulted in an incomplete transaction. How can this be solved?

This kind of situation can be handled as follows: When the error is discovered and company Z has contacted Company X regarding the error, the seller (Company X) issues a credit note on the invoice sent to company Z (the buyer) stating that the issued invoice has been canceled while they also record the status of Ksh. 700 paid as positive in their account payable record. Company Z can then go for a refund or use the amount for future purchases from the same company.

 Example 2

  1. Assuming company C bought products of value ksh. 40,000 from company K. Later it was discovered that ksh. 30,000 worth of products out of the entire stock were bad. Then they sent a notification to company K regarding those products at the time of delivery. How can such a situation be handled?

This case is best handled by the seller issuing a credit note of Ksh. 30,000 in the name and details of the affected buyer. 

When to issue a credit note?

They issue it based on the situations, type of industry or business you are operating on. Some general ones are:

  1. Note that it is issued whenever there is a mistake in an invoice issued for example when there is an error in the amount on the invoice or damages in the products purchased. It is also employed when there is a need for re-issuance or change of invoice.
  2. They are typically used when there has been an error in an already-issued invoice, such as an incorrect amount, or when a customer wishes to change their original order. In short, it can be used in any circumstances that would require the invoice to be changed and re-issued.
  3. It is also issued when an incorrect item is sent to the customer or buyer.
  4. Also, it is issued when the price of goods and services is wrongly charged by the seller. The seller sends it to the buyer reversing the extra charge.
  5. It is also issued for any discount that has not been applied on goods and services at the time the invoice of such is prepared.
  6. Finally, they are issued by the seller when he wants to terminate pending payment from the buyer.

How do you issue a credit note?

After knowing when to issue it, it is important to know how to issue it to a customer. The process of issuing it is not complex or ambiguous. Let us see how the process looks like.

There are tools and invoicing softwares that makes the process very easy. Example of such software is Xero. This software enables easy issuance against any invoice issued originally.

It is crucial that are kept together with the invoice number in order to keep track of the process. If the affected invoice is number 1, its credit note should be number 2, while the next invoice will be number 3. A credit note should be sent to the affected customers while a copy is kept by the seller. Doing this makes the financial record to be properly kept, and the process organized.

Why you should issue a credit note to your customers

Issuing credit notes to your customers helps your accounting records to be reliable. Once an invoice is issued, it cannot be deleted, but it provides the avenue to do such from your financial records without going against the law. 

These cases cited below makes the issuance indispensable. Most times the customer returns goods or rejects services for many reasons when:

  1. There was an error in payment on the original invoice issued 
  2. There was a mistake in price such as overcharging of prices of goods and services on the original invoice.
  3. The goods were damaged during transit to the buyer.
  4. There is a need to cancel part, or all of an invoice issued.
  5. There is no refund policy for returned items, credit notes are issued to the customer as a goodwill act and as such, they can be used in future transactions against another invoice for the same seller.

 What information should you include on a credit note? 

The format ooks like that of an invoice, but its structure is less rigid and strict than a quotation or invoice. It is very crucial to state boldly at the top of the document that it is not an invoice but a credit note. This helps to prevent confusion of assuming that it is an invoice. They should include all the information for administrative and account recording used in the credit notes. Some of them are:

  1. Issuance date
  2. The number of the credit note linked to the invoice.
  3. The reference number of the customer
  4. The terms of payment
  5. Seller’s contact details such as name, phone number, address, email, etc
  6. Customer’s contact details such as name, phone number, address, email, etc
  7. Details from the original invoice such as invoice no, date, etc.
  8. The purpose of issuing it
  9. Value Added Tax (VAT) details if the matching invoice has VAT
  10. Products and their quantities
  11. Prices of products involved as agreed by both parties
  12. A new payment terms

All this will enable the customer to comprehend the purpose of the issued credit notes.

Types of credit Notes

There are two main types and they are:

  1. Credit notes for outgoing payments
  2. Credit notes for incoming payment

Differences between a Credit and a Debit note

Credit and debit notes are not actually the same. Here are some differences between both of them.

  1. Credit notes are commercial documents containing the record of money that a seller owes a customer, while Debit note is a document where the money a client owes a seller is recorded.
  2. Credit notes give a negative balance of an invoice, while debit notes provide a positive balance of an invoice.
  3. The seller of goods and services issues A credit note, while the buyer of such goods and services requesting for a credit note issues a debit note.

Conclusion

Credit note is very essential for account record keeping of business transactions. Errors usually occur in the cause of documenting business transactions. Hence the need to take care of errors and prevent unnecessary hassle for the finance officers when such errors occur.

While preparing it, great care has to be taken to ensure that all the necessary information is captured in . It should contain VAT details for the matching invoice issued together with the amount before VAT. It should be clearly stated that the document is a credit note and not an invoice, as this will confuse the customer when not specified. Armed with this information, we strongly believe that you will be well informed to use credit notes whenever you need to do so.

Loan Apps in Kenya: Reviews and Explanations

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What is more exciting is getting a loan within 24hours or just a few minutes after application without delay, considering the turn of recent events and other policies affected the economy. Loan apps in Kenya have really come in handy.

You can access quick and instant loans through loan apps without security. While there are many disadvantages to loan apps, we advise borrowers not to get defrauded by dubious apps. Aside from this, loan apps are really helpful. It is used to access quick loans in the comfort of your homes.

Kenya has over 25 loan apps. We will run a quick review and examine some of the best loan apps that disburse directly to your M-Pesa account.

Lists of Loan Apps in Kenya

Getting a quick loan through loan apps is now workable and accessible. The lists of the loan apps are:

Tala loan app

It is among the best loan apps and available in Google play store. Once you download it, you can start your application by signing up.

Also, by answering a few personal questions, you get your account verified. In addition, they send your cash directly to your M-Pesa account. Ksh 500 to ksh 50,000 is the minimum and maximum loan limit.

The Interest rate is 15%. Weekly repayment option on the app for three weeks through the paybill number 851900. Loan defaulters are not eligible to access future loans.

Remarkable features of Tala loan app are:

  1. Simple design with easy application.
  2. No unneeded advert popping up during usage.
  3. There is an individual security pin to ensure proper protection.
  4. it reads and tracks your credit history with the app’s status.
  5. Easy repayment and options to choose repayment terms

CBA loop loan app

We can’t forget the remarkable CBA loop loan app. Use the CBA loop loan app for 3 months to explore other features of the app before you can qualify for a loan.

Download the app from their website at. Use your phone number and a valid ID to create an account. They will send a pin to you to activate your account after the loan application. No minimum amount to access, you can take up to a loan of ksh 3 million on the app.

Features of the app are:

  1. Size of the app is 11.46mb in which customers using limited memory phones can still download and use.
  2. It is easy to use and navigate
  3. A schedule on the app gives you a future repayment date and amount with a clear insight on the principal and the interest charges.
  4. A repayment period of 6-36months
  5. It offers other products on the app like sending money, making payments, investment and savings.

Branch loan app

To use this beautiful app, you need to be a registered M-Pesa user. You need an official Facebook account with a profile and username matching those on your National ID card. In addition, download the loan app on Google play store. Sign up, link the app to your Facebook account, provide details, and verify your phone number and account.

Finally, the minimum limit of loan on branch app is ksh 250 and maximum is ksh 70,000. Interest rate depends on repayment of weekly installments on time. It increases the credit score and decreases the interest rates.

Features of the app are:

  1. It is easy to navigate and run through
  2. The app design is simple and eye-catching.
  3. For proper identification, you link the app to your Facebook account before usage.

Timiza loan app

Timiza is one of the best loan apps in Kenya. They opened it for everyone with a mobile phone. Deposit money into Timiza app from your M-Pesa mobile money.

It is then you qualify your chances of getting a loan. 1.083% is the interest, and 5% is the facilitation fee. You need to also be an M-Pesa user for 6 months. It is within a term of 30 days.

Features of the app are:

  1. Creating an account is straightforward.
  2. The app is smooth to be used to access other products. 
  3. There is an easy loan application on the app.

Okash loan app

The loan app gives both individual business loans. Just download the app on google play store, install and create an account.

A maximum limit of Ksh. 60,000  loans. The interest rate is slightly higher at 14%. Customers have 15 days to clear loans.

Features of the app are:

  1. It is easy to download
  2. Scrolling through the app is easy.
  3. Through the personal details you provided on the app, it determines your credit limit.

iPesa loan app

It is a loan app that offers loans between a minimum of ksh 500 to ksh 50,000. The repayment period is between 91 days and 180 days.

Interest rate is between 0 to 6%. It has a variable service fee of 5% to 10%. Before you can use the app, you need to be at least 18years.

Features of iPesa loan app are:

  1. Loan application is easy.
  2. The loan app privacy permission is superb. They encrypt personal data supplied on the loan app.
  3. To ensure proper documentation, it uses the data on your phone to verify your identity.

Zenka Loan app

Zenka loan app is accessible and reliable. You can download it on google play store. The first loan in this app is interest free.

Zenka finance promises a loan between a minimum of ksh 500 to a maximum of ksh 30,000. It is payable within 61 days. However, the 61 day repayment terms have a processing fee of 9% to 30%. Processing fee is from ksh 45 to ksh 870.

Features of the loan app:

  1. The app is transparent with the fees it charges.
  2. It is colorful and easy to operate.
  3. It is easy to use.

Mshwari loan app

Mshwari is one of the best loan apps with minimum requirements. They render it through M-Pesa. By increasing your saving amount in your account and repaying your first amount borrowed, you can then be qualified to take a higher loan.

In addition, you must be a Safaricom subscriber before you can use the app. Minimum amount is Ksh 100, and we do not know the maximum. It has an interest rate of 7.5%. Repayment terms are 30 days.

Features of the app include:

  1. It is easy to operate, use, and navigate.
  2. The functionality of the app is good, as it gathers information from your M-Pesa history. 
  3. No unnecessary adverts popping up while using the app.

KCB M-Pesa

In this app, it is easy to borrow without saving. Be active on Safaricom for 6 months. They disburse loans through KCB M-Pesa app Menu on your phone.

Moreso, Ksh 50 and Ksh 1,000,000 are the minimum and maximum. Interest rate is at 1.16% every month. Negotiation fee of 2.5%. 

Berry loan app

It is a unique and flexible mobile money lending app which offers low-cost loans in Kenya. First, download the app from Google Play. Install and register on the loan app.

You need to get verified to access loans. The minimum loan is Ksh. 500 and with time, it rises to Ksh. 50,000. The service fee is 9%-16% of the principal amount. 

Features of the app are:

  1. Easy to download, set up and log in.
  2. The app has flexible repayment schedules, which are easily accessible. 
  3. The repayment procedure is painless.

How to get a loan through a loan app

The above loan apps listed have requirements which allow you to apply for loans.

To access an instant loan in Kenya, meet the following requirements:

  1. You must be above 18years to access any loan through an app.
  2. To access mobile lending, possess a registered line on your mobile phone.
  3. No low credit profile (or blacklisted on CRB). 

Conclusion 

Mobile loan apps are really making headway. You can access an instant loan within a few minutes. Need a loan to clear your debts, go through the lists and make a choice.

You can stay in your comfort zone and apply for an instant loan using your mobile phone. Be smart enough to check out our website for your loan comparisons. Comprehend the information and explore your choice.

Mortgage loan originator- everything you need to know

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Taking a loan to buy or refinance a home or using a mortgage loan originator to achieve this represents the biggest financial transaction a Kenyan will ever take part in. However, going through the processes of homeownership isn’t easy. We often have to look at the terms and conditions and learn about roles we might not otherwise be exposed to daily.

In this article, we will discuss mortgage loan originators in Kenya. You will understand who they are. You will also know them as a person and as an entity and the roles they play in the mortgage processes. 

Mortgage loan originator

Who is a mortgage loan originator? 

A mortgage loan originator is a licensed person who guides a mortgage applicant through the mortgage processes and approval till it’s closing. A company can be a mortgage loan originator once they do mortgage origination.  

Moreso, mortgage loan originators can also work for a single company and be a mortgage originator. They are also seen as mortgage brokers that facilitate mortgage loan application and work with many companies. 

What you need to know about them

While you are trying to figure out how to go through a mortgage loan, you will need guidelines and directions. Definitely, you are going to go through searching and comparing the best loan, underwriting, and documentation alone. You will also need to come up with the best down payments and that you cannot calculate alone. In addition, you will talk about things like interest rate, valuation fee, stamp duty, legal fee, negotiation fee and commitment fee. It can all sound overwhelming. Once you understand a bit about the mortgage loan and the financial institution and loan officer you are going to be working with, things can seem easier.

8 Functions of a mortgage loan originator 

The different functions of a mortgage loan originator are:

  1. Identifying home buyers through various means of communication and advertising 
  2. Compiling and listing applicant information necessary for the mortgage loan
  3. Takes application and shows options of different lenders and applicants compared prices 
  4. Guides an applicant throughout the loan processes 
  5. Figures out the loan amount that suits an applicant’s objectives. 
  6. Helps an applicant with documentation and paperwork
  7. Guides an applicant through underwriting by contacting a professional
  8. Takes the applicant through the loan to the closing stage

4 ways on how to become a mortgage loan originator

There are things you need first before you can become a mortgage loan originator. You need to be a detail-oriented person and have a good personal quality. Moreso, you are required to have an excellent credit history. Then the procedures to becoming a mortgage loan originator include:

  1. Possess a degree in finance, banking, economics or any other fields.
  2. Taking pre-licensure education courses
  3. Getting license through passing a test
  4. Submitting the data and information for approval by the NMLS 

5 Requirements to becoming a mortgage loan originator in Kenya

The requirements needed to becoming a mortgage loan originator are:

  1. Must be 18years and above
  2. Have a national identity card to prove your identity 
  3. Possess the national mortgage licensing system and registry number
  4. Willing and available to go through the required hours of education 
  5. Pass the national examination 

7 licensing requirements for the originator

When making financial decisions based on your mortgage application, it is reasonable you meet the right person. A mortgage loan originator who is licensed and can be trusted. Someone who knows how to handle the mortgage loan application and also knows what to do at the right time.

The licensing requirements are:

  1. Get licensing from your respective states in Kenya 
  2. Register with the NMLS
  3. Apply in any CRBs to get your credit report certificate 
  4. Supply all personal information 
  5. Provide fingerprints for a criminal background check and clarifications 
  6. Showcase a financial services employment history for a specific number of years required
  7. Attest to the completeness and full accuracy of the data and information provided.

2 mortgage loan originators in Kenya

The different mortgage loan originators are:

  1. Person: this can be the loan officer or mortgage broker representing an entity in Kenya
  2. Lending institution: they also know the lending institution giving the loan as mortgage loan originators. They direct individuals on how to start and go about the application. 

How are mortgage loan originators paid or compensated? 

Financial institutions like banks that employ MLOs are more likely to pay them basic salaries and benefits. Individuals, state-licensed mortgage brokerages, rely on commissions.

In addition, real estate agents allow their MLOs to negotiate their percentage fee commonly referred to as commission.

Conclusion

The role of a mortgage loan originator is to help get through the processes of your mortgage loan till the end. They also help get professionals for underwriting and help with documentation so you can accomplish your financial goals.

A mortgage loan originator can refer to both the person(loan officer or mortgage broker) handling the loan origination process and the institution offering the loan. They may work directly for the bank or the lender, or they may be a mortgage broker working for distinct entities.

Every Mortgage loan originator must be licensed. Individuals are licensed, and financial institutions also maintain their licenses. Conclusively, financial institutions like banks and non-banks offer mortgage loans and have mortgage loan originators that work on their behalf.

Read up on getting 50000 loan and how needs and wants affect borrowing.