Do you need cash so much and you don’t have where to get some cash urgently? Okay, you are in right place, we will guide you through some unsecured loans in Kenya.
Unsecured means you can access a loan with no collateral and in case you are unable to pay the borrower can’t responses your items. This kind of loan is given to borrowers depending on their credit history and income. But some platforms completely don’t look at your income.
With technology developments, securing a loan it’s more simple that there before. With this technology, you can get a loan instantly in less than a minute as long as you have a smartphone.
The only problem with this kind of unsecured loan is getting a small amount of money.
But, having a good repayment history makes a lender have trust in you hence enabling you to gain access to a larger amount of loans.
Most of the lenders give out loans from as low as Ksh. 500 to Ksh.1,000,000. If you need money so urgently then look at the unsecured loans outlined.
Formerly known as Mkopo Rahisi Tala was the first extract to the Kenyan market as a mobile loan application. It was launched in Kenya in 2014. If you have a Facebook account, and an Android Smartphone, then you are good to go. To access a loan from Tala, you need to download the Tala application from the Google Play store. After downloading the next step is to link it with your Facebook account, then you will be able to borrow.
Although Tala gives out unsecured loans, several steps are taken for purposes of eligibility. There is a series of personal questions asked to determine if a client is eligible to be given the loan. Another way the system determines whether a borrower qualifies for s loan is through reading their mpesa transaction history.
Tala offers its customers with a minimum loan of Sh. 500, and a maximum of 50,000 when one makes payments on time. The interest rate is 15% and the client is supposed to make weekly payments of 4 weeks.
Mshwari was established in 2012, and since that time it has changed several people’s lives by the services they offer. Anyone who is Safaricom customer automatically qualifies for a loan once they stay active on Mpesa for at least six months prior date of registration.
It is one of the best-rated micro-borrowing platform offering unsecured loans in Kenya at pocket-friendly interests.
The minimum loan amount one can get is Sh. 100, which gradually increases with a positive repayment history. An individual can get a loan of up to Sh. 20,000, but only Safaricom determine when to increase the loan amount depending on individual mpesa transactions.
Mshwari loans are supposed to be paid within a period of 30 days with a flat rate of 7.5% interest. In case you default, you are given an extra 30 days to clear the balance, with an additional application of a 7.5% facilitation fee. If you won’t be able to pay the loan within 60 days, you will not be able to access any other loan for 30 days because of late repayment.
Branch is a google play store app providing Kenyans with quick unsecured loans. Like any other Apps providing micro-loans, with a branch, you also get a loan but you need to have an Android phone. The app uses mpesa transaction messages, to help it determine how the money will be loaned out.
For one to qualify for a loan, you also need to have an active Facebook account. The first loan you can qualify Ksh.1000. Each on-time repayment increases your loan limit. Branch is more competitive since the interest rate reduces with each on-time repayment. Payments are done weekly.
4. KCB Mpesa
Its a product of the Kenya Commercial Bank, one of the banks offering unsecured business loans in Kenya. Qualifying for their loan is easy as all you need is an active Mpesa account holder.
To access it just go to your Mpesa, then to loans and savings options where you can access KCB. Another option to access a loan through KCB Mpesa is by being a KCB bank client.
The minimum loan amount one can get is Sh. 100. But compared to M-Shwari, their loan limit is much better. The rate at which your loan limit increases is much faster than M-Shwari. The maximum amount one can receive is Sh. 1,000,000.
Apart from that, they have a fantastic payment structure where they charge a 1.16% interest per month. One you service you can pay with an interest of 3.66%, with an excise duty which applies to the fees.
5. Kopa Chapaa
It’s an Airtel’s version kind of Mshwari. It was established in 2012. This kind of unsecured loan is facilitated by Faulu Bank. For one to be eligible for a Kopa Chapaa loan it requires an individual to have used airtel money for at least six months.
The minimum amount to be disbursed is Sh. 500, and a limit of up to 100,000. The worst thing about this kind of a loan is that a repayment duration of only ten days.
6. Pesa Pata
Although it is not known to many it is an excellent provider of unsecured business loans for a startup. Pesa Pata is facilitated by Paddy micro-investments. It has been operational since 2012. For one to qualify for a loan you need to have used Mpesa services for at least six months.
To access their services, download and install an app from the Google Play store, and request a loan application from the app. Before you proceed, you need to pay a processing fee for Sh.100. Their interest is very very high, at 30% and you are required to make payments weekly.
Timiza if offered by Barclays bank. Besides offering their customers with loans, one can also use the Timiza app for airtime top-up, paying bills, paying for a taxi, and buying insurance Forex. To qualify for a loan one, one needs to be above 18 years, have an Android device, and have an active Mpesa account.
In case you don’t get a loan limit right away, you may start saving with your virtual Timiza account to qualify for a loan within 30 days.
Zidisha it’s the first peer-to-peer (p2) lending platform in the world. They lend money to businesses or individuals through online services, which directly matches borrowers and lenders.
Its a non-profit organization connecting borrowers from different parts of Africa and Asia with lenders from Europe and North America.
They do not have any loan interest, but they have service charges.
Okash its a mobile app owned by Opera Group. It gives out small unsecured loans to people using Smartphones in Kenya. It can give up to a maximum of 500,000 within minutes to qualified borrowers. The interest rate is 5% per month.
Repayments can be once for two weeks.
Its application courtesy of Getbucks. Its services are run across the continent. At the moment of writing this article, the amount given out is between Sh. 500 to 5,000, and a repayment period of seven to one month.
11. Pesa na Pesa (PNP)
With Pesa na Pesa one needs to register a physical company before you can borrow.
Apart from registering a company, a borrower needs to provide collateral security to be used to acquire large loans.
Their loan interest rate is 10%, with repayment duration of 10 days. The maximum loan one can borrow is Sh. 10,000, while the minimum loan amount is Sh. 500.
It is also a peer to peer borrowing platform. However, it doesn’t operate locally well as compared to Zidisha.
They disburse loans through Paypal or Kiva platform.
They have a 34% interest rate, which varies by partner or country you are applying from. The minimum and maximum loan amounts one can receive are dependent on lenders.
Bitbond is a peer to peer lending site.
The good thing about a bit bond is that you can apply from anywhere in the world. Secondly, no Credit score is required to receive a loan.
With Bitbond one can get a 24-hour approval and get the money instantly.
The maximum amount of loan one can receive is $25,000.
Access loans here BitBond
14. Kopo Kopo
Kopokopo is an online merchant platform that enables small scale and medium enterprises to accept payments through Lipa na Mpesa. Kopokopo offers unsecured loans to its clients depending on the number and volume of transactions that are carried out through their platform.
Your ability to borrow is determined by how many payments you receive from Lipa Na M-Pesa or Masterpass QR. Secondly, you need to use their platform for at least 6 months.
One can receive an unsecured cash advance of up to Ksh 5M. Applying for a cash advance takes less than a minute, and the amount is disbursed into your KopoKopo account immediately, once it is approved.
You can acquire a Till Number by signing up here Kopokopo
It’s a new entrant to the mobile apps loans. It’s one of the competitive loans around that one cannot miss using incase of an emergency.
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Why do you need to get unguaranteed loans?
If you need an unsecured loan you don’t need to pledge any of your items as collateral.
All the lender is supposed to do is evaluating your loan application based on your possibility to repay. There are several factors lenders look at to determine whether you are likely to repay or not and what amount you qualify for.
Moneylender wants to ascertain that you have enough capabilities to enable you to repay back their loan.
Lenders will also check your borrowing history to see if you have paid off your previous loans successfully or if you have defaulted.
With the change in technology, the world of mobile micro-loans is becoming more effective.
The reason behind being that they offer unsecured loans that are provided by various institutions to assist borrowers during tough financial times. If you offer or you know of other unsecured loans in Kenya you can contact us so that we can add the information.
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