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How To Borrow Airtime From Safaricom Line – The Dial Code

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Safaricom offers users a means of borrowing credit and paying it back later as they top up, more like a bank overdraft on their airtime, but at a small fee. How does this work? Let us learn about how to borrow airtime from Safaricom line.

How to borrow airtime from Safaricom line.

About Safaricom Kenya

Safaricom PLC is a Kenyan mobile network operator headquartered in Nairobi, Kenya. Founded in 1997, it is the largest telecommunications provider in Kenya and one of the top 10 most profitable companies in the country.

There are five mobile telecommunication services offered by Safaricom – Simu ya jamii, M-PESA, Prepaid and Postpaid, Business and Enterprise, International Roaming, and Data and Messaging. But Safaricom’s M-PESA application is mostly used and it allows users to transfer money using their mobile phones.

Moreso, in the Data and messaging section, Safaricom provides instant airtime to users through Okoa Jahazi. You can repay later the airtime when you top up.

Okoa Jahazi Code

Eligible individuals or subscribers who meet the requirements can dial *131# or *456*2#, then choose “Auto-Okoa” and select “Subscribe” and choose the amount of Okoa Jahazi loan you want to borrow.

About Safaricom’s Okoa Jahazi Service

This is a service platform where Safaricom PrePay subscribers can borrow airtime when they request it. Services of Safaricom’s Okoa Jahazi:

  1. Subscribers who meet the eligibility criteria can request an advance of mobile airtime using the Okoa Jahazi service.
  2. Credit Advances are credited to their PrePay accounts after they deduct their service charges. 
  3. Safaricom charges an advance fee of 10% for each Credit Advance that you request.

Eligibility For Safaricom’s Okoa Jahazi Airtime Advance 

You must meet a few criteria before you can borrow Safaricom airtime, some of which are listed below:

  1. Sign up for the Safaricom PrePay service.
  2. In order to qualify for the Credit Advance, you must have spent airtime equivalent to the amount requested for the last seven (7) days.
  3. Your account balance must be less than Ksh 2.
  4. Be able to top up over 180 days in order to maintain an active line.

How to Borrow Airtime From Safaricom Line

You can request credit advances by completing the following steps:

  1. By dialing *131#, you will receive a confirmation SMS message which confirms you have received the credit advance.
  2. They cannot cancel once they have submitted credit advance requests.
  3. Tracking your Credit Advance usage is possible by dialling *144*4# and sending an SMS to 144.

Rates For Service Charge on Safaricom Line 

AMOUNT REQUESTED FORSERVICE CHARGEAIRTIME CREDITED 
1000100900
50050450
25025225
1001090
50545
20218
1019

Conclusion

If you have fully repaid your previous credit advance, you can request the credit advance every day. Kenya’s Safaricom is the largest and strongest communications company in the country. It offers several services, including M-PESA, the famous mobile money service.

They offer a platform where you can borrow and pay back airtime. We advise you to read the terms and conditions of these borrowing services in Kenya before getting involved.

Read Also: Where to lease your car in Kenya

6 ways to manage debts- All you need to know

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We will explore 6 ways to manage debts. Nevertheless, amid the current pandemic and the poverty it brought to everyone, people borrow for survival. Notwithstanding the economic crisis, if you have debts, you have to keep up with payments and not allow it to get out of control.

Make a list if you are confused. You can use your credit report to make the list. Then pay off your debts bit by bit while you juggle payments on the other you are not currently paying. Remember, everyone with even a bit of debt has to manage it, else it gets out of control.

6 ways to manage debts

What is debt management? 

Debt management is the procedure or ways you plan to control your debts. It is a way of curtailing extravagant spending which might get out of control. Debt management also has to do with strategies of designing a monthly budget and paying off outstanding debts in order to be debt free. Being debt free gives peace of mind and integrity.

6 ways to manage debts

You have been wondering ways to manage and tackle your debts and ensure you have control over it. Below are 6 ways to manage debts and they are:

  1. Be sure you identify how much you owe
  2. Make monthly repayment on time
  3. Raise a calendar to guide your monthly repayment
  4. Identify the debt to pay off first
  5. Make sure to commit a payment every month
  6. You can make use of your retirement fund and consult your credit counsellor

Be sure you identify how much you owe

If you know exactly how much you owe, you will know how to repay to repay your debts faster, and you will not miss any. As a first step, write all the debts, creditors, their total amount, and their due date. Be sure to write out everything on your list. Then Start with either the one with the nearest due date. Pay sequentially till you clear off all debts.

Make monthly repayments on time

Pay off as much of your debt as you can each month and on time. Pay at least the minimum amount due on each loan and early enough before the due date. This will protect your credit rating. If you can afford to pay more, pay off the loan with the highest interest rate first. As you pay off each loan, start paying more on the next debt in line.

Raise a calendar to guide your monthly repayment

If you have more than one debt, ensure that you make all monthly payments on time, create a monthly calendar and a schedule. You can show which bill you have cleared or still owing and note the bill payment date. The calendar will show detailed information on all your debts and how you plan to pay them off.

Identify the debt to pay off first

Determine which loans you should pay off first; credit card debt and payday loans usually attract higher interest rates than other obligations. Prioritize debts with high interest rates. Attend to it first and it goes on sequentially.

Make sure to commit a payment every month

 Make sure you at least pay a minimum amount each month rather than not paying anything. By doing so, you will keep your debts from growing, ensuring that your account remains in good condition. However, when you miss payments, it becomes difficult to pay the increased amount, which can lower your credit score.

In the future, you may find it difficult to qualify for the most helpful loan because of bad credit. But if your credit score is good, you can get a loan anytime.

Make use of your retirement fund and consult your credit counsellor

Consider talking to a financial planner or credit counselor if you cannot figure out how to reduce your debt. Credit counseling agencies help people deal with their debt problems. With their help, you can develop a plan, help you apply for your retirement fund and get you out of debt.

5 Tips on how to achieve debt management 

The ropes to achieving these 6 ways of debt management are:

  1. Always bear the risks and consequences of debt owning in mind
  2. Be mindful of your integrity. This would make you source for genuine ways of managing debts
  3. Continue to look for genuine ways to make more money
  4. Never relax till you make the last payment 
  5. Be patience enough and hold still 

4 disadvantages of growing debts and joking with debt management 

The disadvantages to debt growing are:

  1. It stains your integrity 
  2. CRBs shortlist your name and you won’t be able to borrow from any lender again
  3. You salvage your business and such comes at a steep price
  4. People lose trust in you and financial institutions wouldn’t want to lend you money again.

Conclusion 

You should read the fine print carefully before working with this agency. Debt settlement plans can come with serious stipulations. Just as losing weight takes time, so does getting out of debt. But diligence can make it happen. Don’t fret if you need to make adjustments along the way or if you slip up. The answer is not to do a quick fix, but to change your attitudes and behaviors to realize your financial goals.

Watu Kenya Loan- How To Get A Loan From Watu Credit

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

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

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

Let’s delve in!

About Watu Credit 

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

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

Here’s what sets Watu Credit apart:

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

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

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

How to Apply for a Watu Credit Loan 

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

1. Choose Your Loan Product:

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

2. Check Eligibility:

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

3. Gather Required Documents:

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

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

4. Visit a Branch:

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

5. Await Approval:

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

6. Loan Disbursement and Repayment:

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

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

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

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

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

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

Watu Credit Motorbike Financing

Does Watu Credit Offer Cash Loans?

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

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

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

How do I check my Watu credit balance?

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

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

How to Repay Watu Credit Loan

In repaying Watu Credit, follow the steps below:

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

Watu Credit Offices in Kenya

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

Conclusion

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

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

Frequently Asked Questions

How do I check my balance on Watu?

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

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

What is Watu credit Paybill number?

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

How do I contact Watu Credit?

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

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

Email address: info@watucredit.com. 

Loan Application And Agreement Form – What You Should Know

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Loans aren’t always a bad idea if you go about it right. Technology has revolutionized loans, making them accessible with a few taps on your phone. Our goal is to educate you on loan application and agreement forms and how to write a simple loan agreement.

What is a Loan Agreement?

Informally, a loan agreement is a contract between two parties – a lender and a borrower defining the conditions of the loan. In the event that one of the parties fails to fulfill their obligations, the other party may enforce the loan conditions in court.

In return, the borrower promises to repay the lender the loan at a later date, possibly with interest. Moreover, the lender cannot suddenly decide not to lend money to the borrower, especially if the borrower made a purchase with the expectation of receiving money soon from the lender.

What is a Loan Agreement Form

A Loan Agreement is a document that is signed between two parties that want to get into a transaction involving a Loan. The loan agreement document is signed by a Lender (the individual or company giving the loan) and a Borrower (the individual or company receiving the loan).

Loan application 

A loan application is a procedure for obtaining a loan. Applicants for a loan use loan applications to request financing. Borrowers reveal key information in their loan applications. An application for a loan is critical to determining whether the lender will approve the loan or not.

what should be included in a loan agreement form

What should be included in a loan agreement?

  1. Details of the borrower 
  2. About the lender
  3. Loan amount 
  4. Interest rate
  5. Repayment date and duration 
  6. Collateral 
  7. Late charges
  8. Other fees like origination fees, legal fees, insurance fees, etc.
  9. Prepayment for a discount
  10. Governing law in case there is a problem with the agreement 

Personal Loan Agreement form template 

The loan agreement sample below details an agreement between a borrower and a lender. The lender agrees to give the borrower a loan, who agrees to pay back the loan according to the conditions specified.

How do I write a simple loan agreement?

Here are 6 easy steps to writing a personal loan agreement:

  1. In starting the Document, write the date at the top of the page. 
  2. Write the terms of the Loan and state the purpose of the personal payment agreement and the terms for returning the money. 
  3. Date the Document of Agreement
  4. Sign the Document
  5. Record the Document

Who Needs a Loan Agreement?

  1. Borrower 
  2. Buyer of a home
  3. Buyer of a car
  4. Seller of a home or a car
  5. Investors 
  6. Business men
  7. Family members 

When To Use a Loan Agreement Form

Often, relying on only a verbal promise can result in one person falling short. A written agreement can specify a loan’s terms and the amount of interest owed by the borrower. 

Here are some situations where you may need a Loan Agreement:

  1. Starting a business and need a capital loan
  2. Purchasing land or a home with a real estate loan
  3. Investing in a higher education or repaying a student loan
  4. Buying a new car or boat for personal reasons
  5. An employee loans from their employer
  6. Helping a friend or family out with a personal loan

Sample loan agreement in Kenya

The loan agreement template in Kenya addresses the following details:

  1. Who: The borrower and the lender, or the person taking money and the person giving money
  2. What: The amount of money or “principal” that is being borrowed, and whether interest or a percentage of the principal is also owed
  3. When: The duration of the loan or date the principal and any interest should be repaid back to the lender.

Conclusion 

Borrowing money could be one of the best decisions you ever make. Those trying to apply for a loan often do not know how to go about it. In contrast to traditional loan applications at banks that take a lot of time and are filled with procedures, online applications are far easier. Find out how to write a loan agreement, how to complete a loan application, and when to use a loan agreement form. With all these, you are good to go.

Ipesa Loan Review – What you should know

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Ipesa offers instant loans without collateral.  Ipesa loan review is what this article targeted, and we discovered it is one of the best loan lender apps in Kenya. They provide quick loans to the citizens, both salary earners and business owners. Just be sure that you have a good credit score and proceed for the loans.

We will review Ipesa loans and we believe that all the information gathered will do a lot for you.

About Ipesa loans

Ipesa loan is owned by Osome Fintech Company, whose office is in Kenya. It is among the best and leading financial apps in Kenya. They are currently receiving a lot of positive reviews, rating and good accolades online. The system uses algorithms to track your creditworthiness. It scans your mobile phone information to determine your readiness to repay loans on time.

What you need to know about Ipesa loans

Ipesa uses data on your phone to verify your identity to make lending approval decisions. Follow a few steps and you are ready to be a beneficiary of Ipesa loans. The steps are:

  1. Download and install the app on your mobile
  2. Create an account on the app
  3. Enter your details where necessary 
  4. View your loan limit. You can apply immediately if you wish
  5. Loan disbursement is directly paid into your M-Pesa account 
  6. Make early repayment and increase your loan limits.

Minimum and maximum Amount to borrow 

The minimum amount to borrow ranges from ksh.500 to Ksh.50,000. Repayment duration also ranges from 91 days to 180 days. In addition, Ipesa maximum APR on loans is 36%.

How to get Ipesa loans

To get Ipesa loans, follow the procedures below:

  1. Download the app on google play store
  2. Create an account with your Safaricom phone number 
  3. Input all your personal information 
  4. View the loan amount you qualify for and fill the application form
  5. Select your loan repayment duration 
  6. If approved, you will receive your loan within minutes.

Interest rates for Ipesa loans

For a loan duration of 14days, Ipesa will charge you 15% taking so many factors into consideration. Their average interest rate is 12% APR. They also have 0% service charge. The charges also depend on your repayment history and lending cost.

Ipesa loan requirements 

To obtain loan through Ipesa, you have to provide the following requirements;

  1. Posses a Safaricom phone number linked to your M-Pesa account 
  2. Have a national ID
  3. Open an M-Pesa account 
  4. A smart android phone 
  5. Be willing to grant Ipesa access to read your phone data.

Ipesa loan app

Features of Ipesa loan app range from:

  1. 23,067 reviews on Google play store
  2. 4.2 star ratings
  3. Has over 1million downloads on Google play store 
  4. Memory space of 7.0MB.

Benefits of Ipesa loans

The various things you would gain why using Ipesa app are:

  1. No sort of hidden  or secret extra charges 
  2. They do not need collateral or any form of documents 
  3. You data and processed information is secured
  4. They have good customer support team
  5. As you pay up your loan, you can borrow up to Ksh. 50,000

How to repay Ipesa loans

Follow through the steps on how to repay your Ipesa loans;

  1. Launch your M-Pesa account 
  2. Choose lips na M-Pesa and select paybill 
  3. Input paybill number as 192010
  4. On the account number section,  enter only your M-Pesa number linked to your account 
  5. Type in the amount you wish to repay
  6. Enter your M-Pesa pin
  7. Confirm details you provided press Ok
  8. Receive SMS for successful repayment 

Frequently asked questions and answers

What should I do when my payment does not reflect. 

When payment is made and it doesn’t reflect,  contact the customer care immediately.  Note down your transaction information. Wait for few hours to get feedback. 

What happens when I overpay 

Try as much as possible to contact the support team. They will work on your account and reconcile all excesses and deposit it to your M-Pesa account within  15 days.

What happens during late repayments

2% fee is charged per day on the principal amount. You are urged to repay your loans early so as not to exceed the due date. Exceeding the due date will lower your creditworthiness. 

Example: 

Assuming you borrowed Ksh. 1000 to pay back within 180 days and you exceeded with a week, you will pay the following:

Interest: 1000 x 12% = Ksh. 120

Penalty: 1000 x 2% x 7days = Ksh. 140

Total Amount = Principal + interest = penalty

= 1000 + 120 + 140 = Ksh. 1,260

This is what the analysis looks like but you can avoid all of these if you try as much as possible to repay early.

When you don’t repay early your name and other details will be forwarded to the Credit Reference Bureau (CRB). It will affect your next borrowing and you won’t even be able to borrow from other lending app.

Can I request to repay later aside from the date.

The answer is No. Start early to pay in bits so you can pay off all debt before the duration date. Avoid borrowing amount that you can’t repay

How to contact Ipesa loans

To contact Ipesa loans, reach them out on their customer care service on +05488888888. You can also email them at help@ipesa.cc. Contact them on Facebook @ Facebook page: https://www.facebook.com/iPesaKenya/

You can also visit their office at: ADLIFE PLAZA, CHANIA AVENUE, NAIROBI.

Conclusion 

Ipesa is one of the best lending apps in Kenya, they take loan repayments with utmost importance. As a result, endeavour to repay your loan as at when due to avoid any sort of penalties. Your loan limit also progresses as you borrow and repay early. It is a convenient, easy, fast, and reliable lending agency. Besides, the steps taken to borrow loans are quick.

10 Mortgage providers in Kenya (2024)

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

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

What is a mortgage?

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

What you need to get a mortgage loan in Kenya

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

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

10 mortgage providers in Kenya

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

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

Ownership of mortgage 

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

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

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

What do mortgage providers consider 

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

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

Types of mortgages in Kenya

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

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

Fixed-rate mortgages 

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

Adjustable rate mortgage

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

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

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

Conclusion 

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

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

6 Small Loan Apps- Interest Rates And How To Apply

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Capital shortfalls, whether in operating, capital, maintaining the business, or expanding the business, are common causes of business failure. Despite this shortfall in finance, sourcing funds from small loan apps is simple and convenient.

They facilitate access to financial services, to a large segment of small businesses loans, individuals, and enterprises. People who would otherwise have little or no access to small loan facilities run to these apps. In this article, we explore the various small loan apps in Kenya and how they function.

Small-loan-apps-in kenya

What are Small Loan Apps?

Small loan applications are platforms built by lending companies to render small financial products to the people. It is available for individuals with an excellent credit history.

Some apps go as far as reading all your phone’s data. You download the app on Google play store, install and register. Small loan apps are the best platforms to get finance for all your unexpected needs.

6 Eligibility Requirements for Small Loan Apps

  1. Be 18years and above
  2. Have a valid national ID
  3. possess a registered phone number 
  4. Have a smartphone to download the app
  5. Have a good credit history 
  6. Accumulate enough data on your phone to prove your authenticity as a non-dubious customer 

How to Apply for Small Loan Apps

Below are the steps to apply for the loan:

  1. Identify the small loan app you wish to apply from
  2. Download the app on Google play store and install
  3. Register in the app by supplying necessary information 
  4. Apply for the loan

Small Loan Apps Interest Rates 

The interest rates for small loan apps vary as per the platform and the small amount. It can be as low as 1% to 15%. There could be many factors that would affect the interest rate for small loan apps.

Small loan apps in Kenya

The following below are some lists of small loan apps in Kenya. They include:

Berry

Described as a unique mobile money lending app, Berry offers low-cost instant mobile loans in Kenya with flexible repayment schedules.

First, you have to download the app from Google Play Store and then register on Berry. Once the system officials have verified your identity, you can then access their loans.

Mshwari by Safaricom

Mshwari is one of the most widely used mobile loan services in Kenya. It is not just a lending platform, but a paperless banking service that allows users to save besides borrowing.

Saving money through Mshwari earns you a 6.65% interest per annum. You access loans of a minimum of Ksh. 100 and the limit rises based on your credit history. You can only access Mshwari loans if you have Safaricom line.

Branch

Branch is one of the most established mobile money lenders in and outside of the country. Through Branch, one can access up to Ksh. 70,000 from their smartphones. All you have to do is download the Branch app on Google Play Store and follow easy steps to register.

Loans are approved in less than 24 hours, and there are no hidden fees. The lender does not charge late fees or rollover fees, which is why the app is preferred by many people.

iPesa

iPesa loan app offers credits from as low as Ksh. 500 to Ksh. 50,000. The shortest tenor for credits is 91 days while the longest is 180 days, so you will have enough time to repay your credit. Their interest rate stands at 12% with no service fee.

Once you download the app, register with your M-Pesa number and then apply for the exact amount you need. If you repay your credits on time, they will set your credit limit at Ksh. 50,000.

Utunzi

Utunzi credit app is just one of the many such products in the market. It provides you with variety in case you do not want any of the other apps. The mobile money credit platform works through M-Pesa just like many other similar lenders.

The app lends both personal and business credits from Ksh. 300 to Ksh. 1,000,000. The shortest credit tenor is 91 days, while the longest is 36 months. There is a 12% fee and interest of 12% in addition to a Ksh. 400 annual account management fee.

International loans in Kenya

Kopakash

Kopakash credit app applies a service based on the product you choose, and it is in return used to assess your credit score. The credit amount can range from as low as Ksh. 1,000 to Ksh. 50,000 and the repayment tenor has a minimum of 91 days and a maximum of 120 days. The loan amount can be disbursed directly into your M-Pesa or even bank account.

Other loan apps include Zash and Fadhili. Also, with Fadhili loan, borrowers can qualify for a maximum of Ksh. 100,000.

Documents needed for loans on small loan app

  1. ID card proof
  2. Passport 

Things to consider before you apply for loans on a small loan apps

Before applying for loans, you need to take into consideration a lot of factors and they are:

  1. Available for all citizens of Kenyans above 18 years
  2. Opening a bank account or M-Pesa account is required 
  3. knowing that repayment is mostly at the end of the month
  4. The loan amounts are small and not too large
  5. Checking the loan limit and other fees, which are displayed on the app
  6. All necessary checks and steps are mandatory.

Why choose small loans apps

Small loan applications are built programmes that aid in processing and dispensing of funds into various individual’s accounts. The importance ranges from;

  1. Easy to apply
  2. Takes less time 
  3. No long documentation processes
  4. Customer support 
  5. Affordable loan offer
  6. Easy in repayment (manage debts)
  7. For personal urgent purposes
  8. Quick disbursal
  9. Transparent processes 

Conclusion 

Small business apps are aided by Fintech lending companies operating in Kenya. These companies are passionate about using technology to deepen financial inclusion. They offer small and instant personal and business loans from Ksh.100 to Ksh. 50,000 to individuals and entrepreneurs. It goes with a maximum interest rate, savings on some of the apps and fixed deposits.

How Can I Get 20000 Loan in Kenya

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We will explore how can I get 20000 loan in Kenya in this article. There are times in your life when you might have to borrow money. When you might want to borrow as much as Ksh. 20,000. How can I get a ksh.20,000 loan is a question you would probably ask.

Small and Large personal loans can be accessed easily depending on how you approach it. It’s important to consider as many lenders as possible to find a larger loan that fits your needs.

What You should Know Before Getting a 20,000 Loan

There are certain things you need to know before looking to get Ksh. 20,000 loan. They are listed below:

  1. Where to get the loan
  2. How to qualify for the loan
  3. What to consider before applying for the loan

How to Get 20,000 Loan in Kenya

To get kshs. 20,000 loan in Kenya, follow the steps below:

  1. Visit the bank branch or fill the application form online. For SACCOs, you have to be a registered member. 
  2. Submit all personal and necessary information 
  3. Upload all required documents 
  4. Apply and Submit your account number 
  5. Wait for loan approval 
  6. Once approved, get your loan.

Eligibility to Qualify for 20,000 Loan in Kenya

To qualify for Kshs 20,000 loan in Kenya, check the list below:

  1. Be 18years and above
  2. Have a national ID
  3. Have a good credit score
  4. Lenders will check your debt-to-income ratio
  5. Evidence of steady income
  6. possess a bank account 
  7. Get a registered Sim card
  8. Banks request for bank statements and payslips covering 6 months
  9. KRA pin certificate 
  10. Some request for M-Pesa account 

What to Consider Before Applying for 20,000 Loan

Before applying for Kshs 20,000 loan, consider the following:

  1. Know the repayment duration 
  2. Be fully aware of the interest rates 
  3. Know the fees, discounts and additional fees

Where to Get 20,000 Loan

Below are different option when choosing where to get Kshs 20,000 loan:

  1. Online lenders
  2. Banks
  3. Credit unions and SACCOs

Online Lenders

Getting online loans is convenient and simple. You can log in to the website and apply from there. Their site is open 24 hours daily.

List of online lenders that can give you Kshs 20,000 loan in Kenya are:

  1. Tala
  2. Branch
  3. KCB online loans
  4. M-shwari
  5. Shika
  6. Saida
  7. Zenka
  8. Izwe loans

Banks

Banks offer loans to new and existing customers once you are eligible for the loan.

Some banks allow you to apply for loans online, others require you to apply in person at a branch. List of some banks that can offer you Kshs. 20,000 loan in Kenya are:

  1. NIC bank
  2. KCB
  3. Bank of Africa Kenya Limited 
  4. National bank of Kenya
  5. Equity bank
  6. Co-operative bank Kenya
  7. Musoni microfinance bank e.t.c.

Credit Unions/SACCOs

Credit unions can also be a good choice to get Kshs. 20,000 loans. They are non-profit organizations and provide lower rates to their members.

Many have flexible policies on membership. Some SACCOs admit members by allowing you to make small donations or contributions during their monthly “Table” meetings.

Examples include: Joywo loans (Kiva) e.t.c.

Conclusion 

If you are ready to check how you can get kshs. 20,000 loan, be sure to shop around. Consider as many lenders as possible to find the right loan for you. Loanspot makes this easy. This article explained:

  1. How to get Ksh. 20,000 loan in Kenya
  2. Where to get Ksh. 20,000 loan
  3. How to qualify for Ksh. 20,000 loan
  4. What to consider before applying for Ksh. 20,0000 and 
  5. What you should know about Ksh. 20,000 loans in Kenya. 

You can also compare your pre-qualified rates from multiple lenders in two minutes on this platform. 

How To Pay NHIF: All Your Payment Options Explained

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Now that you have joined the NHIF scheme, the next step is to learn more about NHIF payment. Members of the NHIF both self-employed and salaried, must make their monthly contributions.

Paying your NHIF contribution late results in penalties and prevents you from receiving medical care from accredited facilities.

About NHIF and its payment methods

In Kenya, the NHIF provides the best healthcare services at an affordable cost for the citizens of the nation. The National Health Insurance Fund has revised its payment packages to provide quality healthcare to Kenyans from all walks of life.

The payment is simple to make and can be through M-Pesa or via the bank. You are free to choose any method of your choice. NHIF issues a card as evidence of complete registration and card replacement.

NHIF payment methods 

The health platform accepts payment of monthly subscriptions through:

  1.  M-Pesa and,
  2. Bank

How to Pay NHIF via M-Pesa

The most common question we hear from people is, “How can I pay my NHIF subscription via M-Pesa?” If you are self-employed, you can pay your monthly subscriptions using M-Pesa pay bill number 200222 and follow the procedure below:

  1. Click on Lipa na M-Pesa in your M-Pesa menu.
  2. Select Paybill and enter business number 200222. 
  3. Enter the account number and the contributor’s ID number.
  4.  Type the amount, usually in Kshs. 500.00 per month. 
  5. Put in your M-Pesa pin. 
  6. Verify that all details are correct, and then click OK. M-Pesa will send you a confirmation message. It takes 2 to 3 days for the payment to reflect. 
  7. NHIF payments made through M-Pesa are convenient because they can be made at any time and from any location. 

NHIF payment via bank

Alternatively, you can make your monthly payment through any of the four bank accounts: 

  1. National bank 
  2. Co-operative bank 
  3. KCB bank and,
  4. Equity bank. 

NHIF Paybill number 

NHIF’s pay bill number is 200222. Payments should be made via M-Pesa using the paybill number.

What to do when NHIF payment does not reflect 

Once the systems are working properly, the payment will update automatically. To determine whether they have received your payment, check your account status. If it takes time to reflect, you can always contact the NHIF office for help.

NHIF payment deadline 

The payment due date for NHIF is usually on the 9th day of every month. 

NHIF Payment Penalty 

To avoid penalties, members are encouraged to pay on time. Late payments usually incur a penalty charge of 50%. For example, if you were supposed to pay Kshs. 1000, you will have to pay an additional Kshs. 500 as a penalty if you pay after the due date.

If an employer fails to submit his employees’ standard contribution, he will be liable for a penalty under the NHIF Act. Employees in this scenario will not have to pay any penalty for the time they were employed by the employer. The reactivation fee for NHIF cards will be Kshs 1500 if you haven’t contributed for more than 12 months.

You can still access NHIF services once you start paying after defaulting for a while. Paying penalties is the same as paying monthly contributions. 

NHIF payment rates for salaried employees 

Anyone who is 18 years or older and is a Kenyan citizen can make their contributions directly to NHIF for their medical insurance.

How much should you pay for NHIF per month? Under the voluntary category, members pay Kshs. 500 per month, that is, Kshs. 6000 per year.

Depending on how much each member makes per month, the contributions are usually deducted directly from their salaries. For salaried employees, here’s the NHIF rate breakdown: Up to ksh. 5,999 pay Kshs. 150.

Kshs. 6000 – 7999 pays Kshs. 300. 

Kshs. 8000 – 11,999 – Kshs. 400. 

Kshs. 12,000 – 14,999 – Kshs. 500. 

Kshs. 15,000 – 19,999 – Kshs. 600. 

Kshs. 20,000 – 24,999 – Kshs. 750. 

Ksh 25,000 – 29,999 – Kshs. 850. 

Kshs. 30,000 – 34,999 – Kshs. 900. 

Kshs. 35,000 – 39,000 – Kshs. 950. 

Kshs. 40,000 – 44,999 – Kshs. 1,000. 

Kshs. 45,000 – 49,000 – Kshs. 1,100. 

Kshs. 50,000 – 59,999 – Kshs. 1,200. 

Kshs. 60, 000 – 69,999 – Kshs. 1,300. Kshs.70, 000 – 79,999 – Kshs. 1,400. 

Kshs. 80,000 – 89,000 – Kshs. 1,500. 

Kshs. 90,000 – 99,999 – Kshs. 1,600. 

Kshs. 100,000 and above – Kshs. 1,700.

NHIF contact 

NHIF can be reached at 0800720601 toll-free or at customercare@nhif.or.ke. The service points are also available to provide assistance. For enquiries, you can use the following contact details:

 Enquiry: customercare@nhif.or.ke

 Complaints: complaints@nhif.or.ke

 Laise: info@nhif.or.ke

 Fraud: fraud@nhif.or.ke or (020) 271 4803

 Fax: (020) 271 4806

Phone: (020) 272 3246

Working Hours are usually Monday to Friday from 8am to 5pm

NHIF portal login account login 

Login to the portal by visiting http://www.nhif.or.ke. If you want to know what your account status is via your mobile phone, compose a new text message.

Type the letters “ID”, a space, then your ID number (or passport number if applicable ) e.g ID 12345678 and send to 21101

Note: Charge for this service is Kshs 10 only.

Conclusion 

The above information in this article should answer all of your questions about NHIF payments. NHIF rates are very affordable, so you should not hesitate to join if you have not already done so.

To avoid penalties and receive the best treatment options, be sure to pay your monthly contribution on time. 

How to borrow Airtime from Telkom Kenya

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Imagine this scenario: You’re in the middle of an important conversation, and suddenly, your airtime runs out. Or perhaps you need to send an urgent message, but you’ve exhausted your balance. These situations can be frustrating and inconvenient, especially when you have no immediate access to a recharge outlet.

Fear not! Telkom’s PEWA allows you to borrow emergency airtime by just dialing *133#. The PEWA service is similar to Safaricom’s Okoa Jahazi and Airtel’s Kopa and is available to Telkom prepaid subscribers.

One stand-out thing is that you can borrow airtime in the middle of a call. No matter the situation, PEWA enables you to remain connected to the people you care about.

How-To-Borrow-Airtime-On-Telkom-Kenya

About PEWA emergency airtime

Telkom Kenya’s PEWA Emergency Credit service is designed to provide a lifeline when you run out of airtime, similar to Kopa Kredo and Okoa Jahazi from other carriers.

Eligible Telkom prepaid customers can access PEWA by dialing the simple code *133# on their phones. Depending on your needs, you can borrow PEWA 20, PEWA 50, or PEWA 100 on your Telkom line.

A 10% service fee applies to each request, meaning if you borrow PEWA 100, you’ll receive Ksh 90 worth of airtime. With PEWA, Telkom ensures you stay connected even during unexpected moments.

It’s important to note that a 10% service fee is applied to each PEWA request. This means if you borrow PEWA 100, you will receive Ksh 90 worth of airtime, with Ksh 10 being the service fee.

How to borrow airtime from Telkom 

Accessing PEWA emergency airtime is an easy process. Dial *133# on a phone with a Telkom number to initiate the process. Select the amount of airtime that best suits your needs(typically Kshs. 20, 50, or 100). Follow the prompts to complete the loan and get back to calling or texting!

Eligibility for Telkom airtime

To be eligible for this service, Telkom requires the subscribers:

  1. To must have been an active user for the previous two months. 
  2. To have your account airtime balance between Ksh 10 and Ksh 20. 
  3. To have an accumulated spend of at least Ksh 50 in the previous month.

Understanding PEWA’s Terms and Conditions

Being familiar with PEWA’s terms and conditions is just as important as meeting their eligibility criteria. Here’s a breakdown of key points to remember:

  • PEWA charges a 10% advance fee on each request. This means you’ll receive the requested airtime minus the 10% fee. For example, requesting Ksh 50 will result in Ksh 45 of usable airtime.
  • PEWA airtime is valid for 30 days and cannot be used for international roaming.
  • You have 7 days to settle your PEWA advance. If payment isn’t received within that timeframe, your access to the service will be suspended for 14 days.

Benefits of PEWA emergency airtime

  1. PEWA gives you instant airtime on loan if you are eligible
  2. It enhances quick airtime when there is no shop around to purchase airtime
  3. It is simple to master and convenient to use.

How to Check Your Telkom PEWA Balance

To check your Telkom PEWA balance, dial *131# on your phone.

how-to-check-your-telkom-pewa-balance. *131#

How to repay airtime from Telkom Kenya

There are two main ways to repay airtime borrowed through Telkom Kenya’s PEWA service:

1. Top-up your Telkom Line:

  • This is the most straightforward method. Simply recharge your Telkom phone number with enough credit to cover the borrowed amount and the 10% service fee. Once the top-up is successful, Telkom will automatically deduct the PEWA amount and fee from your main balance.
  • You can top up your phone using various methods: Mobile Money services like M-Pesa, Agent shops, Telkom Self-care platforms (*160# or My Telkom App), or by purchasing a scratch card.

2. Pay Bill using T-Kash:

  • If you’re a registered T-Kash user, you can use it to repay your PEWA balance directly.
  • Dial *160# or access the My Telkom App and navigate to the T-Kash menu.
  • Select “Pay Bill” and then choose “Popular Paybills.”
  • Find “Telkom Kenya” from the list or enter the business number (220220).
  • Enter your Telkom phone number as the “Account Number” and the total amount to be paid (borrowed amount + 10% fee).
  • Confirm the transaction by entering your T-Kash PIN.
  • You’ll receive a confirmation SMS upon successful repayment.

Conclusion

Telkom Kenya renders integrated telecommunications solutions to individuals and agencies in Kenya. They can give you instant airtime through a service called PEWA by charging a 10% fee.

You should always read the terms and conditions before you engage in any borrowing service in Kenya, since it is important to know what you are getting into.

Frequently Asked Questions

1. Can I get Okoa Jahazi on Telkom?

No, Telkom’s airtime borrowing service is called PEWA, not Okoa Jahazi. While both offer emergency airtime, PEWA is specific to Telkom.

2. What are PEWA Telkom bundles?

PEWA doesn’t function like traditional data or airtime bundles. Instead, it provides you with a set amount of emergency airtime – Kshs. 20, Kshs. 50, or Kshs. 100 – to make calls or send SMS.

3. How long do I have to repay PEWA?

You have seven days to repay the borrowed PEWA amount.

4. What happens if I don’t repay PEWA on time?

If you default on repayment, you won’t be able to access PEWA services for 14 days as a penalty.

5. Is PEWA free to use?

No, PEWA is not free. Telkom charges a 10% advance fee on every PEWA request you make.