Unemployment is the greatest problem facing a man. When you are unemployed, you do not have any income, but expenses keep coming directly and indirectly. In the past, as an unemployed person with no steady and strong income, financial institutions can not give you a loan.

In recent times, the heightened competition in the loan market can now make unemployed people’s access loans. But they will still need to have suitable income-earning assets and future budgets to repay the loan.

To get the best option as an unemployed, find the best lender amidst many of them in the market. Explore because you need the best.

This article will reveal all you need to know about loans for the unemployed in Kenya. 

Thing you need to know about loans for the unemployed in Kenya

As an unemployed person in Kenya, you can borrow a maximum of Ksh.500 to Ksh.25,000 depending on the lender. Some lenders can offer higher or lesser. You do not have to borrow an amount you can not afford to pay back. The lender checks your personal repayment ability (as an unemployed, how would you be able to pay back). The lender also looks at your credit history. 

In addition, there is an interest attached to every loan amount which can be fixed or variable. It is advised you go for a fixed interest rate and is often between 6.5% to 13% depending on the lender. The fixed interest rates help make you know and decide on your monthly budget. 

Consequently,  in every loan there is a repayment mode. Be aware of your loan term so that it will correspond with your monthly budget.

3 Loans for the unemployed in Kenya 

The two main type of loan for unemployed in Kenya are:

1. Secured loans
2. Unsecured loans
3. Fixed-rate loans

secured loans for the unemployed

Secured loans for the unemployed are accessed by presenting a collateral as a loan commitment. The collateral reduces the risk of the loan and also reduces the interest rate. Unemployed in Kenya can go for this type of loan since there’s no means of income. Upon default, the asset presented as a collateral would be sold off by the lender to recover the loan amount. Additionally, your credit score does not really matter. 

Unsecured loans for the unemployed  

The best loan for the unemployed in Kenya is unsecured loans. This type of loan is made available at a relatively low interest rate. The flexibility related with the low interest rates made it more suitable. Invariably, You can borrow to a certain minimum and enjoy flexible repayment terms. No collateral is involved. Unsecured loans are easily accessed without much stress. 

The low interest rate, fixed repayment mode and the reasonable loan duration made it the best option for an unemployed. In this type of loan you need to be judiciously wise. Financial wisdom is required and would also help you find the maximum amount you need.

Fixed-rate loans for the unemployed 

This is a type of personal loan that favours the unemployed. The interest and the monthly repayment is the same throughout the lifetime of the loan. Here, you can have a wide view about the future cost and align it with your budget.

Secured loans for the unemployed 

How to apply for unemployed loans in Kenya

The application is simple and not tiring. The procedures for application include:

1. Fill the application form on the lender’s website. Or you can download the loan app on google play store 
2. Create an account on the app and supply all necessary details
3. Get the necessary documents ready
4. Apply and wait for loan approval 
5. Have your loan disbursed to your account 

2 Eligibility for unemployed loans in Kenya 

In order to be eligible for unemployed loans, you must:

1. Be 18years and above 
2. Have National ID to prove your identity 

3 Requirements for accessing loans by the unemployed in Kenya

The requirements needed are:

1. Proof of ID (national ID card with details aligning with your address
2. Information of your guarantor, if you asked to present a guarantor 
3. Details of loan security (e.g. a vehicle or other asset of value)

4 Features an unemployed person should look out for before making a loan application 

The characteristics of loans for unemployed in Kenya are;

1. The loan should have a relatively low interest rate
2. A repayment style that suit the borrower’s budget
3. Good repayment tenure that aligns with your monthly  budget 
4. A fixed-rate repayment mode.

What lenders look out for before approving a loan application made by an unemployed person 

Lenders will typically consider the following when an unemployed person makes a loan application:

1. Borrower’s ability to pay back
2. Worth of asset presented as a collateral 
3. Credit history 
4. End of the month budget and incoming future payments

What are the things to look out for when making a loan application while unemployed 

As an unemployed person in Kenya, there are various factors to look out for before accessing and considering a loan. They are:

1. The lender who does not impose any penalty in case of loan default 
2. The best type of an unsecured loan with a low-interest rate. Even though some lenders would charge you high because of lack of income.
3. Working fixed-rate repayment style 
4. Longer duration 
5. Fast in processing and easy to access.
6. The best secured loan you can easily pay off

Additional information on loans for the unemployed in Kenya 

There are a couple of things you still need to note when applying for loan as an unemployed. They are:

1. Some lenders are more likely to offer you smaller loan amount 
2. You might be charged a higher interest rate by some lenders. But some lenders might be willing to go down if you do your findings well.
3. Your credit history will be checked thoroughly.  Your previous loan application and rejections will also be checked. 

Conclusion

Fintech companies have made everything easy for us. You can stay in the comfort of your home to apply. The entire process is fast, and they waste no time in verification and valuation of collateral.

All you need is downloading and installing the app on your phone. You can also visit the lender’s website and fill the application form online.

We have up to 5 types of loans you can apply for in Kenya. You can use borrowed money for different purposes, which must fall in alignment with our needs. This is the best time for us to answer questions like, “What are the types of loans?, which is the best? And what purposes match the different types of loans?”.

Therefore, the need to start a business, solve a personal pressing need, and buy a home or a property, there are loans made for these varieties of needs. 

Furthermore, each type of loan solves a peculiar problem, and hence, none is the best when it is being matched with our different needs. This article will reveal the types of loans we have in Kenya and all you need to know.

What you need to know about the types of loans in Kenya 

For whatever you may be needing funds for, try to find out the type of loan suitable for your needs. However, if it is your first loan, ask around and do your findings. You can not need a business loan and go for a personal loan, which often attracts a relatively high interest rate.

5 types of loans you can apply for in Kenya

The different loans we have in Kenya are:

1. Personal loans 
2. Secured loans
3. Unsecured loans
4. Fixed-rate loans
5. Variable-rate loans

1. Personal loans

Personal loans are one of the 5 types of loans you can apply for in Kenya. This is a type of loan used in solving personal pressing needs. Personal loans can clear household bills, buy foodstuffs, pay off church dues, etc. A personal loan permits you to borrow cash from a lender for almost any personal purpose, mostly with a fixed duration, a fixed interest rate, and a regular monthly repayment. No collateral is required and banks, online lenders, and street lenders offer this type of loan. It is for those who need a relatively small amount of money.

2. Unsecured loans: 

They offer this type of personal loan without collateral and approve it based on your credit score. The pros of this kind of loan are that there is no collateral involved. The disadvantage is a slight increase in interest rates. If a borrower defaults on a personal loan, it leaves the lender with few options but to involve agents or debt collectors. These people help in recovering bad debts. However, Lenders do not have the right to take your assets, land, etc as collateral. You promise to repay and show proof of solid income and excellent credit history. 

3. Secured loans

Secured loans are obtained with collateral. Because it has recovered some part of the loan risk if the interest goes down. The advantage is a partially low interest rate and losing collateral in the case of loan default. Where your credit scores aren’t excellent enough to qualify for your unsecured loan, they request collateral. Secured loans show a lower risk rate to the lender or bank.

4. Fixed-rate loans

Fixed-rate loans are one of the 5 types of loans you can apply for in Kenya. In this type of loan, the interest and the monthly repayment remain the same till you pay off the entire amount. A fixed-rate loan is a type of personal loan where the interest rate stays unchanged for the entire duration or for a part of the loan period. Most citizens of Kenya go for fixed-rate loans for long-term loans. To an extent, they have a clear view of the future costs and monthly repayments.

5. Variable-rate loans: 

The interest rate of this type of loan can go down or up depending on the marketing structure. A variable-rate loan is a type of loan or personal loan where the interest alone changes according to changes in market structure It is in most cases called an “adjustable” or a “floating” rate. 

Note: Unsecured loans, Secured loans, Fixed-rate loans, and Variable-rate loans are seen as types of personal loans in Kenya.

Examples of loans you can apply for in Kenya

1. Business loans
2. Home loans
3. SME and agricultural loans
4. Home equity logbook loans
5. Car loans
6. Student and education loans
7. Salary advance

1. Business loans:

Business loans are offered to entrepreneurs and startups. They also offer it to business people who will go into expansion. It comes with an average low-interest rate. It is mainly offered by banks because it often requires huge capital. 

A business loan is a loan specifically for business purposes. Such loans come as asset-based loans, invoice financing, micro-loans, and business cash advances.

2. Home loan: 

They offer home loans to customers who want to purchase a home. The borrower in most cases goes to find a home and then meets the financial institution for the loan. The financial institution takes the title of the home till the borrower makes the final payment. It comprises an adjustable or fixed interest rate and repayment duration. They mortgage the home in question to the lender, mostly banks as a security till the final loan repayment.

3. SME and Agricultural loans: 

SME loans are offered to small and medium enterprise individuals who are looking to start up a business to boost the economy. They offer it on the basis that you pay little or no interest depending on the platform. Agricultural loans are for farmers and Agribusinesses to further turn their crude way of farming to a mechanized way in order to boost the agricultural sector. They in return make a repayment by the due date.

4. Home equity logbook loans: 

This type of loan requires the borrower to submit all documents of his home to the bank to raise a loan. The loan might be 50% monetary value of the home. Landlords benefit a lot from this type of loan especially when they want to embark on a new project. Projects like education loans, re-roofing, property acquisition, etc. Moreover, the amount of the loan will be based on the value of the property.

5. Car loans: 

This is a loan given to borrowers for them to own their dream car. There are terms and conditions you need to fulfill before you can get this type of loan. Often 80% to 90% of the value of the car is financed by the bank or the lender with an interest rate attached. It requires the borrower to pay back the loan and possess full ownership of the car. 

6. Students and education loans: 

There was a certain time when education was expensive, but the acquisition of loans has come to subsidize it. Lenders offer student loans to students or parents to finance their education. In return, the students graduate, get a job, and start paying off their loans. 

In addition, they use student loans to clear tuition fees, books, and supplies, living expenses, etc.

7. Salary advance: 

A salary advance is a type or form of a loan to salary earners who need cash and in return payoff at the end of the month. Monthly earners who need loans and can not wait till month end, go to acquire salary advance.

They give it to employees who receive wages or salary every month. It is simply a loan to an employee, and they pay it back immediately after the salary enters the account. 

How to apply for any of the types of loans

Applying for loans in Kenya is generally the same procedure as all lenders. Except for slight differences. The procedures are:

1. Download the loan app on the Play Store or visit the lender’s website and fill out the application form. Or visit the lender or the bank’s physical office and fill out your application form 
2. Create an account on the loan app and submit all your personal details. 
3. Wait for the app to read your details. Here you are to also submit your documents if requested.
4. Wait for loan approval and have your loan.

General eligibility for different types of loans

To be eligible for a particular type of loan you need to be:

1. Be 18 years and above
2. Have a national ID 
3. Possess an active phone number 

Conclusion

In the past few years, digital loans have changed the market for credit in Kenya. We have up to 5 types of loans you can apply for in Kenya. What should be of great concern to you is to identify the type of loan you need. 

However, It is pertinent to do proper findings and comparisons and also know the type of loans your loan falls under. When you want to take out a loan for an emergency or business expansion, know the type of loan you would go for. Know the requirements and eligibility attached to each type of loan because in Kenya each type of loan has its own peculiar features.

USSD ( Unstructured Supplementary Service Data) is a means of accessing services offline.

In Kenya today, it is possible to access loans using USSD codes.

In this article, we will provide up to 49 USSD codes you can use to get loans in Kenya.

49 USSD Codes For Quick and Instant Loans in Kenya

We took the time to research and compile an extensive list of mobile loan lenders in Kenya. Scroll down to view and select your preferred quick loan USSD code and service provider.

Platform	USSD Code for loans
Pi Capital Ltd	*879*99#
Premier Credit	*241#
Stanbic Bank	*208#
Chase Bank of Kenya	*275#
Commercial Bank of Africa	*654#
Consolidated Bank	*262#
Diamond Trust Bank	*385#
Equatorial Commercial Bank	*286#
Equity Bank of Kenya	*247#
Extend Money Services	*676#
Family Bank of Kenya	*325#
Faulu Microfinance Bank	*339#
Safaricom/NCBA/KCB Bank	*234#
Gulf Africa Bank	*399#
Gusii Mwalimu SACCO	*879#
Century MFB	*871#
HF Group (Housing Finance Company)	*618#
I&M Bank Limited	*458#
Jamii Bora Bank	*344#
Safaricom/KCB	*844#
First Community Bank	*342#
Mobile Opulence Ltd	*610#
K-Rep Bank	*527#
Kenya Women Finance Trust	*378#
Musomi Microfinance Institution	*279#
Maisha Bank	*281#
National Bank	*625#
NCBA Bank	*654#
Ndege Chai Sacco	*882#
NIC Bank Limited	*488#
OkoaMia Ventures	*628#
Okoa Sasa	*628#
Okoa Thao	*660#
Okolea Int.	*842#
Kopa doh	*610#
Sotiwa	*243*90#
Paddy Micro Investments	*269#
Telkom	*133#
Pezesha Africa Ltd	Text ‘Pezesha’ to 22235
Post Bank	*498#
Rafiki Microfinance Bank	*366#
Standard Chartered Bank	*722#
SMEP Microfinance Bank	*741#
Sotiwa Ltd	*243*90#
Stima SACCO	*489#
Barclays	*848#
Transaction Bank of Kenya	*862#
MyCredit	*322#
Zenka Finance	*841#

How to apply for loans using USSD in Kenya

The systematic way of applying for a loan through USSD is simple and short. All you need is:

1. Identify your mobile loan lender.
2. Take note of the mobile loan lender’s USSD code.
3. Meet all the requirements.
4. Dial the USSD code on your mobile phone.
5. Provide the details requested by the prompt.
6. Get your loan.

Benefits of Using USSD Codes to Access Loans

Using USSD codes to access loans comes with its perks.

1. It is easy to use.
2. Fast response time.
3. It is available round the clock. 
4. No mobile data charges.  
5. You can use it to access your account balance.
6. It can also track your financial transactions.

Requirements for Getting Loans Using USSD Codes in Kenya

Although USSD codes are interactive and short, they still have some requirements, which include:

1. You must have an account with the bank; the bank must have your personal information like name, account details, and other things
2. You must have your SIM card registered with the bank
3. Dial your code using the registered SIM card.

Conclusion

You don’t have to go through the stress of downloading and installing an app before obtaining your loan. Sometimes, the loan apps may not be compatible with your smartphone or tablet. With a single USSD code dial, you can get a loan for half the time you would have spent on the Android app.

Instant Unsecured loans are loans that are granted with no collateral and within a few minutes. If a borrower defaults on the loan, it leaves the lender with few options to get paid outside of filing a lawsuit.

In the course of this article, we will be looking more into instant unsecured loans and if they’re right for you.

What is an instant unsecured Loan?

As stated above, instant unsecured loan is a form of loan that doesn’t need collateral or a security deposit to receive and is disbursed immediately.

With instant unsecured loan, instead of pledging assets, borrowers qualify based on their credit history and income. Lenders do not receive the right to take physical assets if borrowers stop making payments on unsecured loans.

You promise to repay, but you don’t back up that promise by pledging collateral. 

An unsecured loan generally comes in three forms:

• Personal loans
• Student loans
• Unsecured loans

How instant unsecured loans work

When applying for an instant unsecured loan, most lenders check the applicant’s history to see if you have successfully paid off loans in the past. Based on the information in your credit report, your credit score is created, which is a shortcut for evaluating your creditworthiness.

Lenders will also want to be sure that you have the financial capacity to repay any new loans. When you apply for a loan, whether secured or unsecured, lenders will ask for proof of income.

Then, evaluation is done to ascertain how much of a burden your new loan payment will be relative to your monthly income. They typically do this by calculating a debt-to-income ratio.

Documents required for obtaining instant unsecured loan

The following document requirements are obtainable with most unsecured loan providers:

• Office address proof for self-employed individuals
• Proof of continuity of business
• Processing fee cheque
• Duly filled loan application form
• Couple of passport-size photographs of loan borrower
• Identity proof – passport, driving license, voters ID, PAN card (any one proof)
• Proof of residence – utility bill, passport, etc.
• Pay slips for last 3 or last 6 months

How to Apply for instant unsecured Loans?

The following are ways to apply for unsecured loans:

Lender’s website: A great percentage of lenders in the market now provide their services through their websites. You can visit the official website of the bank and apply for a loan with your credentials.

Loan aggregators: These are third-party loan aggregators that can help you find the best deals available in the market. With them, you can compare the different loan products and choose the best product that suits your specific needs.

Branch office: Lastly, you may also visit the lender’s branch office and apply for a loan in person. With the Internet, this choice of application is gradually going extinct. However, if you are not Internet savvy, you may use this option to apply for a loan.

Top banks in Kenya that offer instant unsecured loans

Knowing the fact that a great percentage of the risk involved in granting instant unsecured loan rests on the shoulders of the lender.

Not every credit provider out there welcomes the idea of granting unsecured loans. The following banks offer instant unsecured loans in Kenya:

National Bank of Kenya

NBA is a commercial bank and licensed by the central bank of kenya. You can get an unsecured loan of kes. 6,000,000 without collateral

Benefits

• Short processing period
• Easy payment
• No collateral required
• Top up your loan
• Easily accessible

Rates and fees

• Minimum of KSh 50,000 and maximum of KSh 6,000,000
• Interest Rate is made up of  CBR + Bank Margin % p.a on a  reducing balance.
• Has a minimum of 6 months and a maximum  of 84 months
• Negotiation fees  of 2% for first loans and buy offs. Then 1.5% for top-ups.

Internal costs

• Appraisal fees charged per individual

External costs

• Excise duty
• Insurance fee charged against retrenchment and death.

HDFC Bank

HDFC is one of the biggest private lenders in the country. The transparent process in offering loans helps customers with easy access to instant unsecured and other forms of loans.

Benefits

• Loan disbursal within just 10 seconds for pre-approved customers
• Loan disbursal within 4 hours for other customers
• Optional insurance coverage for customers
• Hassle-free application process

Stanbic Bank Kenya

Stanbic Bank Kenya is also one of the top-notch loan providers with a top-notch collection of loan products in its line-up. The personal loan offered by the bank comes with flexible terms for the benefit of applicants. They include:

Benefits

• Flexible payment and loan-top after 6 months or repayment
• Fast and hassle-free application process and fund disbursed within 48hours

What you need to provide

• Kenyan National ID
• Proof of Residence. You can come along with your utility bill or lease agreement.
• 3 months bank statement or your current payslip
• Kenya Revenue Authority PIN

HF Group

H.F Group is an integrated property and financial solutions regulated by Central bank of kenya. They are major financial institutions that offer SME loans and Asset financing in Kenya. The personal loan offered by the company comes with the following terms:

Features & benefits

• Maximum period of 36 months and Maximum amount of Kes. 500,000
• No early repayment penalties
• Attractive interest rate on reducing balance

How can I ensure my instant unsecured loan application is approved?

Applicants can follow the steps mentioned below to ensure that their instant unsecured loan applications do not get rejected:

• We should pay bills and existing loans on time to maintain a high credit score.
• In case a customer has a low credit score or has never applied for any credit before, he or she can build his/her credit score or enhance it over time.
• Ensure your earnings match or exceed the minimum income criteria of the concerned lender before applying for an unsecured loan.
• Having a stable and regular source of income also increases the chances of an unsecured loan application getting approved.

Pros and Cons of instant unsecured Loans

From the borrower’s perspective, the main advantage of an instant unsecured loan is the fact that it is risk free and gotten within a short while. If you receive an instant unsecured loan and can’t make payments, you don’t risk losing your assets.

You just put your credit score at risk. For people and businesses with instant unsecured loans, there is a high chance that your debt will be discharged if you file for bankruptcy.

Additionally, since instant unsecured loans don’t require any collateral and are paid within a few minutes after application, the lender takes on more risk. This generally translates to higher interest rates and less favorable terms.

While instant unsecured loans may be less risky for the borrower, it is important to know how much more it could cost you over its duration. You may find that putting an asset down as collateral is more beneficial than the extra money you will pay as interest.

Conclusion

An instant unsecured loan can be one of the best loan options for blacklisted people. The fact that you don’t have to provide any form of collateral and still get your loan within a few minutes is definitely an advantage to the borrower.

Especially in a situation the borrower has little or nothing to offer at all. You can enjoy instant unsecured loans from any place you are in Kenya. All you need is to login to the lender’s website or visit their physical office. 

With the current global pandemic and other economic issues in Kenya, living has not been easy. No matter how much you work, toil and expect the unexpected, there is simply no way to know what lies ahead. Escaping from emergencies in a smarter and effective way is through an emergency loan. After all, unplanned and completely unpredictable events must always occur.

An emergency fund in Kenya gives you peace of mind when daily troubles and lack of funds leaves you stressed out. So know this, it is difficult to come up with a fund right away when you need it. Are you still willing to go along with me? If yes, let us explore emergency loans in Kenya and all you need to know.

What you need to know about Emergency loans

Emergency loans often come as unsecured personal loans, salary advances, payday loans, and credit card cash advances. These forms of loans are gotten quick to solve the said emergencies. It is sent directly to your bank account or your M-Pesa account. Often within a business day or few hours. The fast processing of the loan depends on the lender and the details of the loan application.

To fully understand the lender’s requirements and your options, conduct a quick research. Also read everything throughout the process.

What are Emergency loans?

Emergency loans are loans that cover sudden expenditures. They are unsecured personal loans that you can borrow to solve pressing and unexpected expenses. Relatively they are expenses like unexpected car repairs, home roof repairs, personal needs, etc.

Because emergency loans are unsecured, they require no collateral. However, some lenders offer emergency loans where the borrower has to put up an asset.

Personal emergency loans steps and procedures vary by lender, so all you need to do is to evaluate each of your options. Consider how much you can borrow, the fees, minimum amount, your income and the requirements

How does emergency loan work

An emergency loan is an unsecured personal loan that allows you to get a loan and pay for unexpected expenses immediately. If they approve your loan, it gives you the power to own a fund and solve your immediate problem and pay back the next day or soon enough.

Then instead of submitting a collateral and going through the long process of collecting a loan, you take the quick step. You make simple fixed- rate repayments within a month or more based on your terms.

Personal emergency loans come with low credit interest rates than credit card cash advances.in paying back the fund you collected, do it in a smarter, affordable and better way.

What can you use Emergency loan for

Emergency loans as a type of unsecured personal loans can be used for almost everything. It is pertinent you review the terms of each lender before proceeding to apply. Therefore, emergency loans are used to pay Bill’s ranging from:

1. Car repairs: while going through your daily activities, your automobile might need an immediate repair. The tendency being to use it at the most effective time often regarding going to work.
2. Unexpected circumstances to see the medics: often the body system changes without permission. The need to see the doctor may arise unexpectedly and if you don’t have cash, an emergency loan is the best option. You can also use the fund collected to pay off accumulated hospital bills or purchase drugs. 
3. Natural disaster occurrence: natural disasters like flood and wind blowing off home roofs might need an emergency fund to repair it. You can collect the money and sort out disaster occurrences and pay in due time.
4. Utility bills: unexpected bills and utility bills can make you go for emergency loans when you don’t have the fun. It can be used to set off immediate bills to avoid embarrassment and issues.
5. Machine replacement and food stuffs: replacing a machine for creating more output is important and might require an emergency loan to tidy that up. Also, hunger can not be endured till the end of the month when you receive a salary. It is better if you take up an emergency loan and buy foodstuffs and payoff at the end of the month.
6. Rent payment: if your rent is due and you run short of cash, an emergency loan can sort that. To avoid being thrown out of the house, it is better you sort for a better option and better later with an interest.
7. Funeral expenses: death does not knock on the door before it comes in. When a loved one passes away without leaving a funeral cost, you may take up the responsibility and go for an emergency loan.

Types of emergency loans

When you need a loan in time of emergency, there are several options out there that you can pick from. The type of loan you go for depends on your credit history.  They may also consider your capacity in repaying the loan. The types of emergency loans we have are:

1. Personal loans
2. Payday loans
3. Credit card cash advance 
4. Title loans and Shylocks loans

Personal loans

Unsecured personal loans is a type of an emergency loan that is rampant in Kenya. Your eligibility and amount are determined using your credit history. Some personal loans also are collected by presenting a collateral like logbook car loans.

Learn more on how to apply for personal loans in Kenya

Payday loans

This is also a form of an emergency loan that has a high interest rate and flow amount. You make repayment on your next payday and require no credit check. Unsecured personal loans are better when compared with payday loans.

Credit card cash advance

This involves borrowing funds through your current credit balance when you have a credit card. The interest rate for this type of emergency loan is also high. Transactions and processing are associated with this type of loan.

Title loan and Shylock loan

Here you need to provide your car or a tangible item, as requested by the lender for funds. When you cannot pay back the loan, the lender keeps the car or sells it off to recover the loan amount.

Check out other types of Loans in Kenya

Where to get an emergency loan

When there are options like credit card cash advance, payday loan and others, there are other options. You can also collect emergency loans from:

1. Bank
2. Online lenders
3. Credit union

Banks

You can get an emergency loan in the bank and have it transferred to your bank account. If you check and find out that you qualify and the process isn’t too long, you can go with the bank. 

Online lenders

Different online lenders in Kenya offer emergency loans quick and easy using a loan app. Some show you the pre-qualification on the app to check if you qualify. This option is also better once you are sure they are reputable lenders, have a secure site and legitimate as well.

Credit unions

A credit union can provide emergency loans. They transfer the money to your credit union account. It is a community or women or region based union. Their loan amounts vary, and they are fair to credit scores. Just meet the requirements and find out If they give to their members only or individuals that have covered their probation. 

How to choose an emergency loan

When doing your quick research and comparison both online and offline, know what you want. Avoid choosing the first person, each for the best lender by considering:

1. Fund arrival time and how soon to get the cash
2. The interest rate associated with the loan amount.
3. The repayment duration. Know that the emergency loan duration varies with lenders. It is important you go for a longer repayment duration to give you time to gather enough funds.
4. Check all other associated fees. Watch out for what lenders charge, especially the transaction fee and late payment penalties. 
5. Identify the credit score to meet. Your credit history affects your interest rates and the loan amount.

Emergency loan alternatives and alternatives when you have a bad credit

When you have weighed all options and there are many shortcomings. Seek for other alternatives. Often bad credit could be the cause. Look out for other escape route to this. Other options include:

1. Seek an advance cash offer from your employer 
2. Checkout charitable financial organisations 
3. Talk to a friend, family or neighbors.

Conclusion 

You can conquer any situation you find yourself in life that may require funds. Life issues knock on everyone’s door; the financial market has mapped out daily and several options to sort it out. Emergency loans are loans you receive to cover unexpected life issues. We have various types of emergency loan discussed in this article. Know them and select the one you need to go for. 

Also, note strategies or alternatives to take when commercial loans fail you. Be smart enough to penetrate the financial market quickly and smoothly to meet up and solve the emergency.