The growth of the use of mobile banking services in Kenya has transformed the Kenyan credit industry. We now have very many apps you can borrow loans from in Kenya. This has happened as people abandon banks and other traditional credit facilities such as SACCOs for mobile loans. We cannot downplay how big of a role Safaricom’s M-Pesa has played in all this being pioneers. Kenyans can now borrow hundreds of thousands in unsecured instant loans from the comfort of their phones.
While we appreciate this as a growth in the credit sector, we are not oblivious to the predatory nature of some rogue lending apps. You should be wary of shady lending apps that have hidden charges and inflated interest rates. A huge leap in consumer protection is that an act of parliament was passed to the effect that all digital lending platforms are now licensed and regulated by the Central Bank Of Kenya. Below we list some of the apps to get quick collateral-free loans in Kenya.
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1. M-Shwari
This is a partnership between Safaricom’s M-PESA and the Commercial Bank of Africa (NCBA) that has existed since 2012 November. Users are allowed to borrow between Ksh100 and Ksh 50,000 at 7.5% interest rates. The loan repayment is 30 days and the loan is processed within 5 minutes. To qualify for bigger loan limits you need to pay your loans within the prescribed time limits.
Additionally, repaying your loan much earlier than required will also boost your chances of an increased loan limit. Also depositing savings into your Mshwari account will boost your credit score. All you need to get signed up is a Safaricom M-Pesa line Simcard that has been active for at least 6 months.
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2. KCB M-Pesa
As the name suggests, this is a partnership between Safaricom’s M-Pesa and the Kenya Commercial Bank that started in March 2015. You can borrow as low as Ksh 1,000 to a maximum of Ksh 1,000,000. The facility fees for this loan add up to a total of 8.64% per Month. To qualify you have to be registered and an active M-Pesa customer for at least 6 months. Similar to most of the facilities we will be discussing today, the repayment period is 1 Month. To grow your loan limit on KCB M-Pesa is similar to MShwari, and also most of the other platforms.
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3. Absa Timiza
The Timiza loan app from Absa Bank PLC is one of the more recent unsecured mobile loan facilities in Kenya. Since its inception in early 2018, the customer base has grown to surpass the 5 million mark. The unique feature of Timiza is that you do not need to be an Absa customer to qualify. Anyone can download the app and apply for a loan.
Timiza has allowable loan limits from as low as Ksh 50 all the way to Ksh 150,000 with a 30-day repayment period. The interest rate stands at 6%. You can also use the Timiza USSD code *848# to access the facility. To grow your limit, you know the drill, save with them by deposits via M-Pesa, and repay loans in time.
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4. Branch
Branch began operations in Kenya in 2015 and has been active ever since. The mother company, Branch International Inc. is headquartered in San Francisco. With the Branch app, customers do not need to have a savings account with Branch to qualify for a loan. The main requirement is an active M-Pesa line with a good credit history.
The minimum amount you can borrow is Ksh 250 and the maximum loan you can qualify for is Ksh 150,000. Branch’s monthly interest rates range between 1.7% and 17.6% which depends on customer risk profiles and credit history. There also are loan terms between 4 and 52 weeks where interests range from 17% to 35%.
Also Read: How to link your PayPal account to M-PESA
5. Tala
Tala is a global technology company with roots in India, Kenya, Tanzania, and the Philippines that claims to build the world’s most accessible financial services. Key to note is that Tala was first launched with the name Mkopo Rahisi and was later re-branded to Tala. Their credit limit starts from Ksh 2,000 all the way to a maximum of Ksh 30,000 with fairly flexible interest rates between 4% and 14% depending on the preferred repayment duration. The repayment duration varies up to 60days. Your credit limit is pegged on your M-Pesa Transaction history.
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Honourable Mentions
Other established apps to get quick collateral-free loans in Kenya include:
- Zenka
- Okash Loan APP
- Eazzy Loan App from Equity
- Mco-op cash From Cooperative Bank of Kenya
- Berry Loan App
- Zidisha App
- CreditHela Loan App
Also Read: Here’s Why M-PESA Is the King of Mobile Money in Kenya
Featured Image Courtesy: UGC
