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Peer to Peer Lending in Kenya Explained

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The system of investment is changing and the way we borrow money is coming to live on our palms. We can get money from other individuals other than banks and financial institutions.

However, when you do not want to borrow money from the bank, peer-to-peer lending Kenya is an option worth seeking.

Can you picture yourself in Kenya and see the emerging market filled with individuals who are ready to offer financial help. So the emergence of peer-to-peer lending opened a new opportunity for investors willing to offer more financial help. Individuals make a profit by coming together and joining a fund, then lending it out.

Let us discuss everything you need to know about peer-to-peer lending in Kenya.

peer-to-peer-lending-kenya

What Is Peer-to-Peer Lending?

Peer-to-peer lending is a platform that enables individuals to get loans directly from lenders other than formal financial institutions. It is a social or crowd funding that connects lenders and borrowers. Most of the loans on this platform are unsecured personal loans. With its unique characteristics with other formal financial institutions, they consider it as an alternative to financing.

Understanding Peer-to-Peer Lending

Peer-to-peer lending binds borrowers and investors who will lend out some part of their money. First the investors open an account and fund it and then disperse it as loans. It is usually done in cash with little formal documentation. 

However, it is limited to a close network of people in the lender’s group. They also give loans to outsiders. A third party can handle the loan application and disbursement and shares a portion of the profit with the lender. Lenders or investors on this platform include people who are ready and willing to assure a portion of the loan.

How Peer-to-Peer lending evolved

Traditionally, lending in Kenya has been informal. Peer-to-peer lending started with no documentation and in cash and with a close number of people in the same group. Earlier on, the peer-to-peer lending system started by offering loans to people who were spurned by formal financial institutions in Kenya.

Often lending on this platform is a way to generate interest in cash at a rate that exceeds those offered by the banks. Lenders then are allowed to start with a little money and as time goes on, they can decide to contribute more and loan out more. 

How Does Peer-to-Peer Lending Work?

Peer-to-peer lending involves processes and steps which include:

1. You fill and submit an online application. This entails you fill in a credit inquiry which can either be soft or hard.

2. The lender may assign you a risk category. Here, your score or rating will affect the principal amount, terms and interest rate. If you settle for the loan limit, you can move forward with the application. 

3. Investors review your loan request and requirements. State why you need the loan and how you can pay back. Your reasons have full chances of convincing the lender. Depending on the structure of that peer-to-peer lender, they might reject your loan application.

4. Loan acceptance. If the investor states other criteria that you are suitable with, you can accept the terms and the loan amount. Some lenders would transfer the loan amount to your bank account within days.

5. You make monthly repayments. Peer-to-peer lenders report all individuals who cannot pay back their loans. CRBs keep the record and you retrieve it any time. Late payments may also come with late fees that increase the total amount of repayment. 

Advantages

Peer-to-peer lending provides some significant advantages to both borrowers and lenders. Both have various ways they benefit from the platform. Advantages of peer-to-peer lending includes:

  1. Higher returns to the investors or higher profit maximization: Peer-to-peer lending provides returns or profit to investors through charging of interest rates. Late fees and other fees paid by the borrower are also part of the returns. g
  2. More alternative and accessible source of funding: For some borrowers, peer-to-peer lending is a better option. They are not ready to go through the stress of the formal banking system. Some borrowers also with low credit scores see it as an alternative.
  3. Lower interest rates: Peer-to-peer lending interest rate is often low and affordable because of the greater competition of financial institutions in Kenya.

Disadvantages  

Peer-to-peer lending comes with a few disadvantages and which includes:

  • Credit risk: Peer-to-peer loans have much default probability because of the risk taken by lenders to give loans to borrowers with low credit scores.
  • Lack of insurance/government protection and policy: The government does not provide any form of policy to govern the platform. No form of insurance or protection to the lenders in case of the borrower’s default.
  • Legislation: Some jurisdictions are limited and do not allow some borrowers to borrow and some lenders to give out loans. It is required you conform to the regulations and when you do not; it affects the platform and the borrowers.

Some Peer-to-Peer Lenders in Kenya

Some of the peer-to-peer lenders in Kenya are:

  • Kiva
  • Zidisha
  • Pezesha 
  • UbaPesa 

The P2P lending platform in Kenya is still new with their continuous zeal in  connecting borrowers to lenders. 

They all use different models to give customers access to loans and have different interest rates and repayment terms. Before applying, ensure you compare different P2P lenders and read their terms.

Types of Loans Available Through Peer-to-Peer Lending

Peer-to-peer lending serves as an unsecured personal loan. It can be used for the same purposes as personal loans. Few loan types you may find on peer-to-peer lending websites are:

The investing side of Peer-to-Peer lending

Becoming a Peer-to-peer is a gigantic business for investors and the investing side to this platform are:

  1. Peer-to-peer lending helps investors earn extra income.
  2. Through the platform, you can learn how to track your earnings from principal to interest and as your borrowers make their payments. You will also learn how to cash out or reinvest.
  3. There is risk involved in the platform
  4. There’s also a tendency of the lending platform itself shutting down. When borrowers don’t turn as suppose, you might lose a portion of the profit or investment.

Is Peer-to-Peer lending the right fit?

Peer-to-peer lending may be a better option for those who cannot qualify with banks and other lenders. Despite the sophisticated Fintech setup, people with fair credit can also apply and have it help them. 

For those who would wish to explore alternative financing sources, peer-to-peer lending might be right for them.

Special Considerations

People who are considering joining a peer-to-peer lending platform should:

  1. Need to note about default rates, as do banks and other financial institutions. 
  2. Any consumer or investor considering using a peer-to-peer lending platform should check the fees on transactions. Fees like origination, transaction and processing fees.
  3. Know that each platform works differently but as unique features which includes credit score rating and interest rates.

Conclusion

Peer-to-peer lending platforms connect borrowers directly to investors or lenders. The platform decides the rates, terms and conditions and also approves all transactions. The lenders are individual investors or consumers who want to get a return on their cash savings. Finally, borrowers who seek alternatives to banks can patronize peer-to-peer lenders and still smile home.

Asset Based Lending- Meaning And How it Works

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This article seeks to reveal all you need to know about asset based lending in Kenya. In business, there are times to balance out corporate finance structure and maintain flexibility.

There are also times to operate cash, grow, consolidate funds and fund different acquisitions. For these to happen amid a lack of funds, it takes only a loan to solve these credit lines.

Most companies and businesses in Kenya rely on asset based lending to manage their financial resources. It is the financial outlet of last resort. For companies and businesses with many assets, it is the last tool in their business financial tool kit.

Let’s discuss asset based lending in Kenya and all you need to know.

Asset based lending

What is an Asset? 

An asset is a tangible equipment and machines and property a company owns that is used in running the business. Assets are long term physical or intangible properties. They can trade assets for liquid cash. 

What is Asset Based Financing in Kenya? 

It is a way companies and businesses in Kenya use collateral to get liquid cash. Collateral can come as asset, property, inventory, or account receivables.

Asset based lending in Kenya is mostly used by businesses and companies and not individuals. It is more flexible and easy to access.

How Asset Based Lending Works in Kenya

Asset based lending works by a business taking out a loan to meet demands by often an asset as a collateral. For example, Mr. Z opened a restaurant and invested more, but ran short of cash to offset payroll expenses.

The business then sorts for loans. He gets the loan by using his equipment or other assets as collateral. The conditions of asset based lending are on the principal amount and the value of the asset. Lenders also weigh the easy conversion of the asset to liquid cash in case of loan default.

Moreso, the cash is often less than the asset. The asset weighs higher and more valuable. The interest rate here is often lower since the borrower has reduced the risk of the loan by providing a collateral. 

What Asset Based Lending Does in Kenya

Asset based lending solves a lot of need and they include:

  1. It covers short term needs in Kenya
  2. Companies and businesses use it to buy time, while shares or bonds in the capital market take time to arrive.
  3. It stabilizes businesses with physical assets to solve their immediate needs
  4. Businesses use to bridge the gap in companies or maintain cash flow
  5. It covers the working capital and also used to start up a business or company financing 
  6. It is attractive, and an option for companies and businesses that stretches its credit limits.

5 Types of Asset Based Lending in Kenya

The various asset based lending in Kenya include:

  1. Mortgage financing 
  2. Account receivables 
  3. Logbook financing 
  4. Equipment financing 
  5. Inventory financing 

6 Examples of Assets Used in Asset Based Lending 

The lists of assets used for asset based lending are:

  1. Account receivable
  2. Inventory
  3. Marketable securities
  4. Property
  5. Plant
  6. Equipment 

How to Derive the Amount of Asset Based Lending 

For the amount given out by a lender to a company or business for asset based financing, it is calculated. They calculate it based on the loan-to-value-ratio. Lenders in Kenya weigh the asset first and find out its market value.

Once it is ascertained, depending on the lender, 70% to 80% value of the security is issued out. The amount depends on the type of asset provided. 

Take note that lenders are willing to offer higher loans for liquid wastes that can easily be converted to liquid cash. That is, loan-to-value-ratio = loan amount/asset value. 

Loan amount: This is the amount the lender is willing to lend out

Asset value: this is the value of the asset being used as collateral for the loan. 

5 Advantages of Asset Based Lending 

The good side of asset based lending are:

  1. It is easier to get
  2. They offer asset based lending with low interest rate
  3. The cash serves well in time if emergency 
  4. It involves fewer commitments and covenants 
  5. You can borrow daily and still pay back.

10 Financial Institutions in Kenya that offer Asset Based Lending 

This is a list of some banks that you can access asset financing in Kenya.

  1. KCB Bank
  2. NIC Bank
  3. Co-operative Bank
  4. I&M Bank
  5. HF Group
  6. Equity Bank
  7. Barclays Bank
  8. Stanbic Bank
  9. Family Bank
  10. CBA Bank

10 Saccos in Kenya that Provide Asset Based Financing

Here is a detailed list of a 10 Saccos in Kenya that provide asset based lending in Kenya:

  1. Mhasibu Sacco
  2. Unaitas
  3. Jamii Sacco
  4. Finlemm Sacco
  5. Wananchi Sacco Society Ltd
  6.  2NK Sacco Society Ltd
  7. Nyati Sacco Society Ltd
  8. AMREF Sacco
  9. Mwalimu Sacco
  10. Hazina Sacco

Another Name for Asset Based Lending 

Asset based lending is also known and seen as commercial finance and asset-based finance.

Conclusion 

Some companies prefer to use asset financing in place of traditional funding, as they based the funding on the assets themselves, rather than the bank’s perception of the company’s creditworthiness and future business prospects.

Best Loan Apps in Kenya Without CRB- Top 10 Loan Apps

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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.

Diamond Trust Bank Kenya- All You Need To Know

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Are you interested in taking a loan? and know the ideas that matter about loans? Diamond Trust Bank Kenya is proud to offer a range of products spanning loan, retail, large corporate and investment banking relationships. You will be dealing with a diverse group of people who all want to leave their customers satisfied.

About Diamond Trust Bank Kenya 

Diamond Trust bank Kenya has an extensive branch network spanned across the country. It is a reputable financial service provider that offers a broad range of banking services for businesses and individuals. You can use their services to receive, store or send money, send international remittances, manage your account and get a personal loan from their online platform.

What does Diamond Trust Bank do?

Diamond Trust bank is a major banking group operating in Kenya, but also has branches across East Africa in Tanzania, Uganda and Burundi. Kenyans living abroad benefit from their loan services to solve their pressing needs.

How Diamond Trust bank Kenya works

Diamond Trust Bank Kenya provides a comprehensive range of retail and corporate banking products and services including Savings and Loan services , Mortgages, loans for commercial and personal purposes, Micro-credit program , vehicle financing and leasing. Visit the website to get the best loan offer you need. 

How to get loan from Diamond Trust bank Kenya 

Do you need a loan from the Diamond Trust bank Kenya? Please read on to learn more about this process, and get started today.

  1. Visit the website 
  2. Go to “Get a loan” 
  3. Choose the type of loan Product you want 
  4. Put all necessary personal information and documents 
  5. Wait for loan approval

How many branches does Diamond Trust Bank have in Kenya 

DTB has 130 branches in Kenya, Tanzania, Uganda, and Burundi. They operate a 24/7 digital  banking branches across Africa.

How do I check my DTB account balance?

To check your DTB balance is by dialing *382# or by downloading the DTB mobile app.

How do I transfer money from M Pesa to Diamond Trust Bank?

Sending money from Mpesa to a DTB Account is simple. Follow the steps below to achieve this:

  1. Launch and open  the M-Pesa toolkit/Safaricom App/M-Pesa app. 
  2. Select Lipa na Mpesa.
  3. Choose paybill and enter 516600 as the number 
  4. Input your DTB account number as the “Account No”.
  5. Type in the amount that you would like to deposit.
  6. Enter your pin number.

Conclusion 

Diamond Trust bank Kenya is the leading and premier banking institution in Kenya, and offers a wide range of personal and corporate loan services and products including: Personal Banking Services and loan services. Check out their website to enquire more and apply for the loan you had wanted.

National Bank of Kenya- All You Need To Know

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National Bank of Kenya is the latest and only full-service multinational bank in Kenya, combining local and international expertise with a large private-sector presence. They provide a financial cornerstone for the future and opportunities for the present and future generations through various financial loan products and services.

About National Bank of Kenya

National Bank of Kenya (NBK) was established by the National Bank of Kenya Act 1964, as a banking company limited by guarantee, wholly owned by Kenyan citizens and controlled by the Central Bank of Kenya (CBK). The bank is committed to and renowned for making and keeping friends. NBK has grown faster than its peers and grown into a fully subsidiary driven bank with branches in both urban and semi-urban areas in all the provinces driven by well serviced Automated Tellers Machines (ATMs) and customer driven Branch Network. Through their strong relationship driven values we have created thriving businesses at our branch network levels.

National bank of Kenya loan products

NBK has different loan products and they include:

Unsecured Loan

Unsecured loan is an easy loan of up to ksh 6 Million shillings without collateral.  You can get the best loan to fund education for your children, go on a shopping e.t.c.

Features:

  1. Easy accessibility 
  2. Easy payment 
  3. Short processing period
  4. No collateral 
  5. Loan top up

National Bank of Kenya Mortgage loan

Are you in need of a house? You can set you off on the journey to owning your new home. NBK home loan supports you in the buying of an existing and completed house.

Features:

  1. You can increase asset
  2. Opportunity for mortgage relief
  3. Value in appreciation and increase in property over time.

How to get loan from National bank of Kenya 

Do you need a loan from the National Bank of Kenya? Please read on to learn more about this process, and get started today.

  1. Visit the website 
  2. Go to “Get a loan” 
  3. Choose the type of loan Product you want 
  4. Put all necessary personal information and documents 
  5. Wait for loan approval 

National Bank of Kenya app

The national bank of Kenya apps includes:

  1. Natmobile
  2. NBK mobile banking- used in accessing various banking services.
  3. KCB

How do I withdraw money from NBK to M-Pesa?

The steps for withdrawing include:

  1. Locate your phone’s M-PESA menu.
  2. Select Lipa na M-PESA
  3. Choose the PayBill option.
  4. Enter your bank’s business/paybill number
  5. Type in your bank account number (this is the number of the account you want to send the cash to).
  6. Input the amount.
  7. Enter your M-PESA pin.
  8. Get the confirmation message 

National bank of Kenya contacts

You can chat with them via +254 (20) 282 8900, +254 703 088 900, +254 732 118 900.

National Bank Head Office Nairobi

The address for National Bank Kenya Nairobi is at National bank building, Harambee Avenue Nairobi. P.O Box: 72866, Nairobi, 00200

Conclusion 

National Bank of Kenya wants you to get the loan that suits your needs! Become a loan customer today and get your money in minutes.

Tip: Crypto loans are fast becoming a thing.

UBA Kenya Loan- All You Need To Know

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UBA Kenya loan is an unsecured personal loan that is designed to help customers meet their personal finance goals by providing them with access to affordable loans. The loan product offers competitive interest rates and flexible repayment terms, encouraging customers to take control of their finances.

UBA-Kenya-loan

What you need to know about UBA Kenya loan

UBA, a leading provider of a wide range of financial services in Kenya, is focused on delivering a highly personalized customer experience. The full name for the abbreviation is United Bank for Africa Kenya limited and is a commercial bank in Kenya. The Central Bank of Kenya, the central and national banking regulator, licenses and supervises it. Visit the website to find out more about the array of financial services they offer across Personal, asset finance and mortgage loans.

UBA Kenya will always offer you loans to suit your needs, whether you are looking to buy a car, motorcycle or even houses. Loans are available for any purpose you have in mind, within the limits. It also extends loans to small businesses on easy repayment terms.

How do I apply for a UBA Kenya loan online?

Learn more about your UBA Kenya loan online application process. Simple steps to complete medium to long term loan requirements. The steps are below:

  1. Login to their website
  2. Locate the “Personal” tab and see the “loans and payments” link and click on it.
  3. Select the type of loan products you want
  4. Fill the form below it and supply all personal and necessary information like your name, phone numbers, location and loan request type, etc
  5. Wait for further response 
  6. Get your loan

Or

You can apply offline by visiting their office and filling the hard copy of the loan application form. Then wait for approval and disbursement. 

4 UBA Kenya loan products

Looking for a personal loan that won’t put your credit score at risk? At UBA Kenya, they will provide you with the best possible financial services tailored to suit your needs. Contact them online or offline to get the best loan that suits your needs. Below are the various loan products:

  1. Hakuna Matata loan/personal unsecured loan
  2. Asset finance
  3. Mortgage loan and
  4. Salary overdraft

Hakuna Matata/Personal unsecured loan

At UBA, they take an innovative approach to solving our members’ financial problems by providing personal loans. Through extensive research and rigorous testing, they designed the UBA Kenya Hakuna Matata loan to be the first of its kind – a loan specifically tailored to the Kenyans to solve personal and emergency needs. You can borrow up to ksh. 5,000,000 with interest of 13% per annum, which is payable in 60 months.

Benefits 

  • You do not need to pay a deposit or invoice
  • Processed quickly, easily, and conveniently
  • A convenient repayment schedule
  • The availability of competitive interest rates

Target Audience

  • Applicants must be confirmed by employees of either a public or private organization.
  • Those whose salaries have been paid through UBA for at least three months.

Asset finance 

UBA Kenya avails opportunities for individuals to own assets they have longed for. They believe that this loan is putting more money in the hands of more people by offering flexible repayment terms; it gives borrowers options on how they want to repay their loans, allowing them to make regularly scheduled installments that fit into their monthly budgets. UBA Kenya loan helps customers achieve their dreams today, while building for tomorrow.

Moreso, you can get finance up to Ksh. 5,000,000 with 90% financing which is payable in 60 months for new cars and 70% financing repaid in 36 months for used cars. Enjoy also a flexible repayment schedule on insurance premium cover for up to Ksh. 5,000,000 for a maximum of 10 months.

Benefits 

  • Has a suitable repayment terms
  • Makes it possible to get your hands on an asset without saving for a long time
  • Comparable interest rates.

Target Audience

  • Employees confirmed by reputable public or private sector organisations
  • Employees whose salaries must be paid through UBA for at least one month
  • Account holders at UBA Kenya
  • Businesses that have been operating for at least a year.

Flexible Mortgages

UBA Kenya is a mortgage provider in Kenya focusing on providing finance to high net worth individuals. Your dream home could be yours for ksh. 25,000,000 which is payable in 15 years, with up to 70% Forced Sale Value (FSV).

UBA Kenya equity release program also provides up to 50% of FSV for purchase of land and untitled properties, medical bills, and school fees.

Salary overdraft

UBA Kenya loan gives you a salary overdraft to employers. You can get up to Kes. 300,000 or 50% of your net salary to sustain you for the month before the pay day. It is available to only UBA customer account holders with up to 3 month account operations. 

How to contact UBA Kenya loan 

You can contact them via email @cfckenya@ubagriuo.com or through their phone number @ +254 711 027 099. If you wish to visit their office, locate them at the 1st floor, Apollo centre, Westlands, Nairobi, Kenya.

Many loan options abound in Kenya. Some of them include Watu kenya loans, Letshego, Pesazone, Loanbee amongst others.

Conclusion 

The UBA Kenya loan is a simple, hassle-free way to borrow according to your capital. 100% of the proceeds of the loan go directly to the borrower for small business or personal use, on property or equipment. It works like this: you decide on the amount you want to borrow and the term you wish to repay. They will keep it simple by giving you one repayment of principal and interest of 12 or 36 monthly installments.

List of Commercial Banks in Kenya (2024 Updated)

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The banking industry in Kenya is the financial services sector in Kenya, which includes commercial banks that provide banking services to individuals or corporations.

list-of-commercial-banks-in-Kenya

Overview of Commercial Banks in Kenya

Kenya is the hub for commercial banks in Africa because of its diversity in the market. Kenya has a wide range of financial institutions that are licensed by the central bank to carry out banking business on behalf of the customers. The Central Bank of Kenya regulates all financial institutions listed here except for Islamic banks, which are regulated by the Central Bank of Kenya, Sharia law.

Banki Kuu ya Kenya or the Central Bank of Kenya (CBK) supervises banks in Kenya. Founded in 1966 in Nairobi, CBK succeeded the East African Currency Board. Ultimately, the central bank has the responsibility of establishing a monetary policy aimed at price stability.

What is a bank?

Banks are financial institutions that accept deposits from the public and create demand deposits. They perform their activities either directly or indirectly and work with various institutions across Kenya.

What is a commercial bank?

In a commercial bank, deposits are maintained for people, and loans are made to individuals and companies.

How many commercial banks are there in Kenya?

The country presently has 28 domestic commercial banks and 14 foreign commercial banks with branches, agencies, or other outlets. The banks are 42 in number as of this research work.

What is the commercial bank lending rate?

The bank lending rate in Kenya is the rate of interest charged on unsecured loans by commercial banks to private individuals and companies.

Commercial banks lending rates in Kenya

Kenya commercial bank lending rate was reported at 12.120 % pa in Aug 2021 and the records increase from the previous number of 12.090 % pa for Jul 2021.

42 Commercial banks in Kenya 

  1. KCB Bank
  2. Investments & Mortgages Bank Limited – I&M Bank
  3. Imperial Bank Limited
  4. Housing Finance
  5. Guardian Bank Ltd.
  6. Giro Commercial Bank Ltd
  7. Fina Bank
  8. Fidelity Bank
  9. UBA Kenya Bank Ltd
  10. The Co-operative Bank
  11. Suntra Investment Bank Ltd
  12. Sterling Investment Bank
  13. Standard Investment Bank
  14. Standard Chartered
  15. Prime Bank
  16. Paramount Bank
  17. Oriental Commercial Bank Ltd.
  18. NIC Bank
  19. ABC Bank
  20. National Bank
  21. K-Rep Bank
  22. Kenya Post Office Savings Bank
  23. Faida Investment Bank – FIB
  24. Equity Bank
  25. Equatorial Investment Bank
  26. Equatorial Commercial Bank Limited
  27. Dyer & Blair Investment Bank
  28. Dubai Bank Kenya Ltd
  29. Dry Associates Limited
  30. Development Bank of Kenya Ltd
  31. Co-operative Bank
  32. Consolidated Bank
  33. Commercial Bank of Africa
  34. Citibank N A
  35. Chase Bank
  36. CFC Stanbic Bank Limited
  37. Central Bank of Kenya
  38. Bank Of Baroda (Kenya) Ltd.
  39. Bank of Africa Kenya Ltd
  40. Afrika Investment Bank
  41. African Development Bank Group
  42. African Banking Corporation

Conclusion 

You can now see all commercial banks in Kenya, check out our list of banks operating in the country today. The existence of commercial banks is essential in every nation for saving money and getting other essential financial services. Therefore, they are crucial to both the people and entrepreneurs because, without funds, they cannot grow.

Commercial Banks in Kenya that give loans without collateral

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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.

banks-in-kenya-that-gives-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

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.

Dave loan app- reviews and how it works

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In terms of cash advance apps, Dave loan app stands out from the competition. It allows users to cover expenses until their next paycheck. With this platform, you don’t have to worry about interest rates. The monthly fee is $1 and can be redeemed by making purchases from connected businesses. 

Dave loan app- reviws and how it works

What you need to know about Dave app

On the Dave app, you can only request for a maximum cash advance of $100. Dave app gives one advance at a time. Getting an advance doesn’t impact your credit score or rating. Penalty fee and other processing fee do not exist. In a nutshell, if you are thinking of using the app to get an advance, here are a few things you need to know:

  1. No interest rate
  2. No penalty or additional fee
  3. Withdrawal limit of $100
  4. No credit checks 
  5. A platform for saving money
  6. A budgeting tool
  7. A funding option

How Dave’s loan app work

Dave app works in various ways. They include:

  1. Helps you budget for upcoming expenditures using the automatic budget tool
  2. Text you when you are in danger of overdraft. So it helps tracks your expenses 
  3. Doesn’t check your credit, no need to worry
  4. Charges a membership fee of $1 per month
  5. Grants your advance at a time
  6. Expects you pay back at the due date or risk being banned from using the app.

3 Eligibility requirements for Dave loan app

To be eligible or to use the Dave app, you must:

  1. Have a steady paycheck
  2. Have your paycheck paid directly into your bank account as your checking account 
  3. Show that your bills do not consume your entire paycheck but have extra money left after each month.

Who is the Dave app good for?

The Dave app is good for the following set of individuals:

  1. Individuals with a steady paycheck who need an additional extra dollar each time
  2. For those who wants to boost their income and curtail expenses 
  3. For people who need financial help and guide on budgeting 

3 ways on how to sign up on a Dave app

  1. First, download the app from Google play store and install it on your phone
  2. Open the app and click ok “Sign up for Dave”
  3. Follow the prompt by supplying additional information like:
  1. Phone number 
  2. Email address
  3. Banking credentials
  4. Password 
  5. Low bank alert amount

How to cancel Dave membership within the app

To cancel membership within the app, follow the steps below:

  1. Locate “Profile” tab
  2. Under setting check “Membership”
  3. Tap the “Manage membership,” tab
  4. Choose “Manage membership” once more
  5. Select “Pause or Cancel,”
  6. Choose “Cancel membership.”

How to contact Dave loan in their application platform 

You can contact Dave loans through the server message on the app. Look for the “Profile” tab and choose “Email support”. Within 24hours a member would get back to you. Additionally, you can chat with the support team directly online at https://suppor.dave.com by selecting the chat icon on their website.

Conclusion 

Dave’s loan app is ever ready to serve you well. It offers a unique cash advance system that can be used to solve an emergency financial need. Other than the $1 monthly membership fee, there is no interest rate or additional fee. You can get a cash advance of up to $100 at a time.

The Dave loan app offers more than just funds; it also offers support. It keeps track of your expenses and helps you cut back on unhealthy spending. 

How To Apply For Quick Loans in Cooperative Bank Kenya

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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.