The financial service sector has seen the most technological evolution over the past years. Gradually steering towards completely abolishing the old ways of manually carrying out financial services, we are looking at a more modern surge.

One of the major service advances is the loan application process. We have now reduced the process of application to just visiting an online platform and following the steps that will be listed in this article. 

What are Online Loans?

Simply put, online is any money that is borrowed from a financial service provider who operates online. While the application process may vary depending on the lender, they are pretty similar when compared. Online loans let you complete the entire borrowing process, without ever setting foot inside a bank branch. Cool, right?

Online loans are one of the most convenient ways to borrow money. A great percentage of them offer lower rates or have less stringent requirements than you can find with traditional lenders.

Just like traditional lenders, each online lending company has its minimum eligibility and credit requirements.

Top 6 Online Loans With Instant Approval

When financial emergencies occur, online loans can be the most convenient option to get fast cash. But not all online lenders are reputable.

Currently in Kenya, most of the private lenders made their loans accessible through apps. But some banks made their loans available directly from their website. Current best bank online loans in Kenya are:

1. KCB bank
2. Missoni Microfinance bank
3. NIC Bank
4. Fin credit 
5. Kenya Central bank
6. NCBA bank Kenya

Note: These banks made their loans accessing directly from their website. You can apply directly online with the best interest rate and customer service support.

What are the Requirements for Getting Online Loans in Kenya?

The application process for an online loan might differ depending on the financial provider you eventually decide to go with. The following requirements are vital and apply to almost all financial service providers;

1. Valid Kenya ID
2. Proof of income
3. Schedule of monthly household income and expenditure
4. Proof of address (A bill in your name which quotes your address)
5. Offer to purchase
6. Bank statement

Sometimes, your credit score is considered while analysing your loan application.

How to Apply for a Loan in Any of the Best Online Loans in Kenya 

The application procedure for an online loan might differ, depending on the financial provider. Knowing this, the following procedures are obtainable with a great percentage of online loan providers:

1. Visit the lender’s website online and fill out your official application 
2. Send all necessary documents. Also, do your electronic signing if requested.
3. Cross check all details
4. Wait for your loan approval
5. If successful, you get your fund within a short while.

It is important to adequately carry out a research or background check on the financial provider you will be considering. This is important, as it’ll help you get acquitted with the terms and conditions of loan before taking. 

Documents Needed to Apply for Loans in Any of the Best Online Loans

It is important to note that the document requirement for an online loan might depend on the financial provider in question. Still, the following documents are likely to be required when applying for an online loan;

1. Security documents for logbook loans
2. National ID card for some loan lenders
3. Birth Certificate to prove your age. Some loan lenders request for this.

Ensuring all these documents are available during the application process puts you a step closer to getting your loan amount approved.

How Fast are Funds Released 

Once you have fallout your application form online, submitted all documents and re-sign, your fund will released within a short while

The only thing needed is for your loan to be approved. If approved, you will have our find within a short while.

Do’s and Don’ts of Getting Online Loans

Before taking a loan in either online or in any form, there are few keys to note. Keep these keys in mind and act by them and you’ll have a great loaning experience;

Do: Check Your Credit Report

For some credit providers, credit scores and credit limits are major determinants of your eligibility. Many credit facilities use credits as a barometer for risk. Any discrepancy can wreak havoc on your credit score or limit, so be sure to be careful. Discrepancies can come as a missed payment, credit card fraudulently attached to your name, etc. 

Do: Consider the Risks if you Have Bad Credit

With a bad credit, you may find it harder to get a decent interest rate on a personal loan. People who find themselves in this boat may need to consider a cosigner to improve their odds of getting approved.

Do: Read the Fine Print

Take a fine-toothed comb through the terms and conditions of your loan offer before accepting. It is of great importance you understand everything in the contract, otherwise, you may have to be forced to pay surprise fees in the future.

Don’ts

Don’t: Accept the First Loan Offered to You

Take your time to check out other options and compare their terms and conditions. In the end, choose the one that best fits your current state.

Don’t: Take out the Maximum Loan Possible

Come on, where is the wisdom in taking out the biggest loan amount just because you can afford it. Over-borrowing can be just as dangerous as paying for something outright that you can’t afford.

Don’t: Skimp on Payments

Scheduling automatic withdrawal or monthly reminders to pay your personal loan is a wise choice. Prompt payments not only improve your chances of getting a better rate, it also improves your credit score.

Conclusion 

It is called financial emergencies because of how urgently they need to be attended to right. So when they occur, the last thing you need a process that might waste your time.

Online loans have long been the number option for both businesses and individuals who immediately need finance. Big ups to technological advancement for making it possible to access these loans from anywhere and have them in no time.

M-Pesa is an outstanding mobile money service in Kenya, that offers a credit called M-Pesa loans 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.

About M-Pesa 

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 of M-Pesa Loans

Pros

1. It is easy to access online M-Pesa loans
2. M-Pesa account is cheap and easy to use
3. Used and accepted in Kenya
4. A local means of payment when you do not have a bank account 
5. They built your M-Pesa Sim to automatically use the apps.
6. The apps built by M-Pesa is popular in Kenya.

Cons:

1. 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 Loans 

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

Timiza offers M-Pesa Loans at an affordable price. 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:

1. Launch the M-Pesa menu.
2. Choose Loans
3. Select the M-Pesa platform you want to use. E.g. M-Shwari, KCB, etc.
4. Apply for the Loan.
5. Enter the loan amount.
6. Input your M-PESA PIN.
7. 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:

1. Be 18years and above 
2. Have a national ID 
3. Have an M-Pesa account as some app would require that.
4. Possess an M-Pesa sim which has been active for a period of six months.
5. 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:

1. Launch your M-Pesa toolkit
2. Chose lipa na M-Pesa
3. Select paybill 
4. Enter the  M-Pesa paybill number for that app
5. Enter your phone number as your account number 
6. Cross check all details
7. Input your M-Pesa pin
8. Hit the send option
9. Get a notification that your loan was successfully repaid.

Conclusion 

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. 

CRB is an acronym for Credit Reference Bureau. The Credit bureau maintains the credit profiles of people so that lenders can check them when considering a loan application.

This credit data is shared by banks, microfinance institutions, and other loan financial institutions, and paints a detailed picture of one’s credit history usually expressed as a score between 501 to 850.

 It goes to show how well or poorly you have managed your loan collection in the past.

In Kenya, Loan Apps Without CRB (Credit Reference Bureau) gives borrowers credit without them going through the credit history checks from CRB. These apps provide quick solutions to individuals facing financial challenges due to bad credit records.

You can access this loan through a mobile app and the criteria include your transaction history, employment status, national ID, and other data. These apps offer a pathway to credit without stringent CRB checks.

So the good news is that not every lender chooses to check your details on CRB before granting a loan.

In this article, we examine some loan apps that do not check CRB status during loan approval

10 Loan Apps Without CRB Check

10 loan apps in Kenya that do not check CRB status, include:

1. Okash

OneSpot Technology Investment Ltd. provides an app called Okash for loan applications. Borrowers must meet the eligibility criteria which are outlined in the Okash loan app.

OKash loans are available to anyone between 21-55 years of age, with a fixed income and a cellphone number. The interest rate on Okash loans ranges from 14% – 16% at 91 to 92 days of repayment. The loan limits range from Ksh. 2,500 to Ksh. 50,000. 

Due to their interest rates being deducted before disbursement, borrowers usually end up with less than they had originally applied for. 

2. Opesa

TK Limited provides the Opesa loan app. Opesa decides whether a loan needs to be approved based on a borrower’s phone data – e.g. handset details. They also consider MPESA/Mshwari finance transactions, and why they want the loan.

The interest rates on Opesa loans vary from 14% to 16%, with a repayment duration of  91 or 92 days. Opesa is another online loan app that deducts interest in advance

3. M-Fanisi

Maisha Microfinance Bank offers the M-Fanisi loan service. Applicants must be 18 years of age or older and have an active M-PESA account transaction record.

M-Fanisi loans range from Ksh. 200 to Ksh. 25,000 at a 10% interest rate repayable within 30 days. The M-Fanisi loan USSD code is *281# for Safaricom subscribers or *222# for Airtel subscribers.

4. Tala

Tala Mobile is the developer of the Tala loan app. They typically approve loans based on the phone data of customers, such as the financial transactions from M-PESA as well as the answers provided while applying.

The interest rate on Tala loans varies between 5% to 15% depending on the repayment period of 21 or 30 days. The loans range from Ksh. 500 to Ksh. 30,000. Tala loans can be accessed by downloading the Tala loan app from the Google Play store.

5. Mokash

Mocash offers a loan product called Mokash. They offer loans of between Ksh. 1,000 to Ksh. 30,000 for 8 days. The Mokash loan app can be downloaded from the Google Play store.

6. Branch

The branch loan app can provide you with loans ranging from KES 250 to KES 70,000 without a CRB check. 

You can apply 24/7 despite your needs. As you apply and repay, your loan limit goes up. Also, know that the interest rate can be as high as 17% to 30%.

7. Timiza

Timiza is one of the easiest and most convenient loan apps in Kenya without CRB. They are popular and many borrowers have successfully collected loans from them seamlessly.

8. Shika

If you need a genuine, easy, and convenient loan app, choose Shika. You can get up to Ksh. 70,000 with a 7.29 interest rate. This app stands out as one of the trusted apps in Kenya.

9. Mshwari loans

Mshwari started in 2014 and offers its leading services through M-Pesa, in partnership with the Commercial Bank of Africa (CBA). Customers can apply for loans of Ksh 100 to an unknown highest limit. It has a repayment duration of one month with an interest rate of 7.5%. 

Conclusively, Mshwari requires you to become a Safaricom subscriber and have a registered M-Pesa line to qualify. 

10. KCB M-Pesa 

This loan app has built a name in Kenya. It offers quick loans and gives a minimum of Ksh 500 and a maximum of Ksh 1,000,000 to its customers. 

KCB M-Pesa was born from the partnership between M-Pesa and Kenya Commercial Bank. However, for one to qualify, you need to be an active Safaricom M-Pesa customer.

Interesting Read: How to start a micro loan business.

Other mobile loan apps without CRB checks include:

• Tunzi Loan app (formerly Utunzi loan app)
• Fadhili Loan app
• Usawa Loan app
• Kano Loan App
• Upazi loan app
• Dolax loan app
• Craft loan app
• Utajiri loan app.

Benefits of Loans Without CRB Check

Loans without CRB checks offer numerous benefits, especially for borrowers with less-than-perfect credit histories. Here are the major advantages:

• Accessibility 
• Inclusivity
• Empowerment 
• Opportunity for improvement 
• Emergency funding 
• Simplicity 
• Speed and convenience 

How to Choose the Right Loan App Without a CRB Check

Choosing the right loan app without a CRB check involves a lot and they include:

• Understanding your needs and how the loan app without CRB checks aligns with your needs
• Look out for the security and privacy of the loan app
• Check their interest rates on all loans, especially their personal and emergency loan
• Read user reviews and experiences online 
• Check out for their other additional fees
• Check their market reputation and trust
• Rate their accessibility and ease of use without worry
• Look for an app with multiple channels of customer support

Some extra fees for loan apps without CRB check

1. Registration fees
2. Appraisal fees or processing fees.

Conclusion 

Normally, a borrower will be screened by a Credit Reference Bureau (CRB), as they interact with various lenders before a lending decision is made.

This is a criterion for loan disbursement. Despite this, some lenders do not use this information. They only access the information provided by the borrower and the data accumulated on the phone. 

Frequently Asked Questions

Are there any loan apps for blacklisted people?

Recently in Kenya, there are loan apps for blacklisted people but they ask for registration fees before giving you any loan. If you are comfortable with paying a registration fee to a loan app before collecting the loan, then check out these loan apps in Kenya.

However, you need also to know that you can pay this registration fee and still not collect the loan. Also, most of them give a loan that is less than the registration fee you paid or just slightly higher than it.

We are not recommending this application but you can try them out. So it is best you build your credit and apply for a loan. 

Some of these loan apps are:

• Opesa loan app
• Ubapesa loan app
• Lion Cash loan app
• Kuwazo loan app
• CashNow loan app
• Pesa Pats loan app
• Aspira loan app
• Pezesha loan app

How can I clear my CRB without paying?

There’s no other way to clear your name from CRB without paying. Once the loan agency has reported you, create a strategy and start paying off your loans immediately to avoid further bad reputation

How do I remove my name from the CRB blacklist?

To remove your name from the CRB blacklist, check your credit bureau report and see all your loan defaults and get up to date immediately with your debts. If the debts are much, negotiate with the financial institutions involved and seek to restructure your debt or pay little by little. 

After payment, request for your clearance certificate/letter.

How Much is the CRB clearance fee?

Kshs. 2200 is the CRB clearance fee or processing fee for a Clearance Certificate. 

It is not fine to clear your name on CRB but the amount charged for processing the clearance certificate is.

Can loan apps put you on CRB?

Loan apps can’t directly put your name on the CRB list but they can forward your name to the CRBs operating in Kenya under regulation and the CRB will now directly blacklist your name after going through the due process.

These loan apps usually give defaulters a grace period of 30 days’ notice before forwarding their name.

We will review the best loan apps in Kenya in 2024. The rise of Fintech companies in Kenya has changed the face of lending among industry operators. More people would opt for loans from the comfort of their homes as opposed to the traditional methods of other lending institutions. 

Kenyans are becoming more addicted to instant loans that require no collateral. There are over 20 loan apps in Kenya for credible instant loans, however, here is a list of our top 5

What are loan apps?

Loan apps are mobile application software built by financial lenders for their customers for easy access to funds. Loan applications come in handy. Customers install it on their mobile phones for quick loan applications. Different loan platforms have a unique loan app peculiar to them alone.

Top 5 loan apps in Kenya 2024

Google Play Store hosts many applications that offer loans. However, we have good apps that offer immediate loans. We will bring five (5) of the best apps and discuss them.

Below is a summarized list of the best 5 loan apps in Kenya 2021. They are:

1. KCB M-Pesa
2. Tala loan
3. Branch loan app
4. Mshwari loan app
5. Saida loan app

1. KCB M-Pesa 

This loan app has built a name in Kenya. It offers quick loans and gives a minimum of Ksh 500 and a maximum of Ksh 1,000,000 to its customers. KCB M-Pesa was born from the partnership between M-Pesa and Kenya Commercial Bank. However, for one to qualify, you need to be an active Safaricom M-Pesa customer for at least 6 months.

Features of the KCB M-Pesa App

1. KCB M-Pesa has more than 1 million downloads on the Play Store.
2. It has 36,182 reviews on Play Store 
3. 4.2 /5 ratings on Google Play Store 
4. It has 9.1MB Memory capacity 
5. The application is easy to operate 
6. A well-designed view spelling out all functions of its products 
7. It has a unique and catchy colour 

2. Tala loans

Tala loan was the first mobile application launched as Mkopo Rahisi, but currently known as Tala. It is a trusted loan app that has gained trust over the years. Customers get a minimum of Ksh 500 and a maximum of Ksh 50,000 with an interest rate of 15%. In addition,  to be qualified,  the Tala app needs you to have a smartphone with a good M-Pesa history.

Features of Tala loan app

1. Quick communication to the server for easy operation and dispense of funds
2. Ability to secure data and other personal information 
3. More than 5 million downloads on Google Play store
4. A star rating of 4.5
5. Has 405,478 reviews on the Google Play Store
6. Requires Android version of 4.03+
7. A nice colour combination that is dim and doesn’t affect the eye.

3. Branch loan 

Branch Loan is a financial institution in San Francisco with a branch office in Nairobi,  Kenya. It started in 2017. Customers access loans from Ksh 1000 to an unknown maximum amount. More so, for one to qualify,  you need to have a Facebook account with the same name as the one on your national ID card. You also need to be a registered M-Pesa user. Interest rates vary and depend on the amount and repayment duration. 

Features of Branch loan app

1. The branch loan app has 321,038 reviews on the Google Play Store
2. The app is easy to operate and navigate through
3. Has more than 10 million downloads on Play Store
4. 4.3 star ratings, which is good.
5. An intuitive design for improved borrowing experience 
6. Showcases loan offer available to its customers 
7. Amazing view and different repayment options you can choose from.

4. Mshwari loans

Mshwari started in 2014 and offers its leading services through M-Pesa, in partnership with the Commercial Bank of Africa (CBA). Customers can apply for loans of Ksh 100 to an unknown highest limit. It has a repayment duration of one month with an interest rate of 7.5%. Conclusively, Mshwari requires you to become a Safaricom subscriber and have a registered M-Pesa line to qualify. 

Features of Mshwari loan app

1. Easy to use and navigate through.
2. Fast in loading 
3. Reads phone data and keeps all data or information safe.
4. Displays available loan limit 

5. Saida loan 

To qualify for the Saida loan, customers need an active M-Pesa/Airtel money account. Once you install the app on your phone and you apply for a loan, the app reads and tracks all your call activities. They also track all your transactions to know if you can pay back the loan.

Features of the Saida app

1. 3.6 star ratings and 10,184 reviews on Play Store 
2. 500k downloads on Google Play Store 
3. 5.9MB memory capacity 
4. Easy to use and loan applications don’t take too long to get to the server.
5. Offer other products, which are also easy to access.

How do I apply for a loan on any of the best 5 loan apps in Kenya 2024

The procedure for applying for a loan on any of the applications is basically the same in Kenya. Follow the steps below:

1. Download the mobile application from their official website and Google Play Store. They host no app in Kenya on IOS for now except Zenka.
2. After installing the application, launch it. Then register or create an account.  Supply all necessary information. Also, note that registration procedure differs from one application to another. 
3. Based on the information supplied and the app reading your phone transactions, it determines your loan limit.
4. Proceed to apply for the loan on the app. Choose or input your loan amount. Note: often, some loan application determines your loan amount and you can not access more than the displayed amount.

Important information you need to note before using a loan app for loan application 

There are details you need to note before loan application.  They are:

1. The terms and conditions of the loan.
2. The minimum and maximum amount of loan you qualify for
3. The loan requirements and qualifications 
4. Loan term or period 
5. Repayment mode and duration
6. Interest rates. 
7. Additional fees and other secret fees

How do I repay a loan on any of the best 5 loan apps in Kenya 2024

Loan repayment on any of the listed loan applications discussed in this article vary from lender to lender. But there are generic ways of loan repayments in Kenya. They are:

1. Launching your M-Pesa account 
2. Choosing paybill option
3. Entering your paybill number 
4. Choosing your phone number as your account number 
5. Entering the loan amount 
6. Inputting your M-Pesa pin
7. Cross checking all details to make sure they are correct 
8. Pressing Ok 
9. Getting a confirmation or successful loan repayment message. 

Conclusion 

In a bid to ensure professionalism among digital lenders, the Central Bank of Kenya is moving to propose new laws to regulate activities of digital lenders. These loan apps have their advantages and disadvantages. However, some of them have gained enough goodwill in Kenya and you can always rely on them whenever you need funds.