Mobile loans in Kenya have really over the past decade risen. This due to the fact that most transactions in the country nowadays happen over the phone. Lending in this country is more mobile and it is set to increase rapidly.
Several lenders are opting for such avenues at the expense of banks and other traditional lending institutions. Although the Central bank of Kenya of late has appeared to not favor them.
Kenya being the pioneers in mobile money transfer using Mpesa, Kenyans have become addicted to instant loans that require little or no security at all.
Mobile loans in Kenya apps have been giving banks headaches until they too dived in. This is because, for most Kenyans, they prefer instant loans as opposed to bank loans where one has to go through a tedious process and then wait before the credit is given.
Loan apps and even some USSD codes remove the question of guarantors and security before they offer their loans. Banks, microfinance, and SACCOs on the other hand will ask you to seek guarantors and then you have to secure your loan.
While there are many disadvantages of loan apps, borrowers should be keen not to be conned by dubious apps. We have highlighted some of the best loan apps in Kenya.
Since this article is very long we have added a table of contents to help you navigate through.
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. The first loan cannot exceed Ksh. 500 and then the amount gradually rises to Ksh. 50,000. The service fee on Berry loans is charged at 9-16% of the principal amount. The repayment is done through the app and is a self-explanatory process.
Tala is available on Google Play Store, and once you have downloaded the app, you can sign up and start accessing quick mobile loans in Kenya. You must provide your details for your account to be verified. Tala provides personalised loans based on your digital credit history. Here you can track your credit using My Tala Status and repay the whole amount at once or in partial payments. You can repay your loan using Mpesa Xpress or through the paybill number 851900
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 in addition to 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 a Safaricom line.
4. KCB M-Pesa
This is another mobile money lender affiliated with Safaricom although it is owned the Kenya Commercial Bank. KCB M-Pesa also enables you to save, thus enabling you to borrow. KCB M-Pesa can be accessed through the M-Pesa menu on your phone, so you must have a Safaricom sim card as well. KCB M-Pesa has a special feature called top-up that allows you to request for a loan more than once as long as you have not exceeded your limit.
Its a product from Absa bank (formerly Barclays Bank) has not been left behind when it comes to mobile loan apps in Kenya. Timiza is an app by Barclays bank that allows users to do all kinds of banking from their phones. Services that are offered through Timiza include loans, fund transfers, insurance purchases, and many more. Timiza app is available on Google Play Store, but for those who can’t access it, they can dial #848 to register.
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 at any time. 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.
Shika is one of the credit apps that stand out by offering more than just loans. It is an SMS app with several cool features that facilitate text messaging. The app also provides the latest news on various topics ranging from politics, sports to entertainment. Shika acts like a portal for several lenders to give credit to their clients. The credits are tailored more towards startups in sectors such as agriculture, asset finance and invoice discounting.
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, your credit limit will be set at Ksh. 50,000.
If you have not used the Zenka app to borrow credits, you will love it. The first credit is interest and service fee-free. It means you only have to pay the amount you borrowed within the stipulated time, which is usually 61 days. You can download the Zenka app from their website Zenka and install it on your phone. After filling the application form, you will receive the requested amount in less than five minutes.
Zidisha loan app is available in Google Play Store. Download it, register, and start using the services. Zidisha functions as a non-profit peer to peer lending platform. It means that your credit will be coming from an independent lender and not the organization itself.
The app is a portal where lenders and borrowers meet and transact their business. To qualify for a credit, you have to be employed or running a business, be active on Facebook, have a working Safaricom sim card, provide a national ID, and have a good credit history.
Okash credit app provides both personal and business loans of up to Ksh. 60,000. You just need to download the app from Google Play Store, install it, and register. Using the personal details you provided, Okash determines your credit limit and the period within which you have to repay. The interest rate is slightly higher at 14%, but your credit will be time for you to sort your monetary needs.
Like other loan apps in Kenya, Jazika gives instant loans anytime, anywhere. As long as you have an M-Pesa line and the app in your advice, you are eligible for a credit. Fill the routine application form and wait for the officials to verify your details before the money is disbursed. Credits are repaid as a once-off sum or in installments through the pay bill number 687035. You will also receive notification alerts in case you forgot to repay.
14. Pesa Ulipo – KTDA Sacco
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 of the 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 are a 12% fee and interest of 12% in addition to a Ksh. 400 annual account management fee.
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.
17. HF Whizz
HF Whizz credit app works for both Android and IOS phones. HF Whiff belongs to the Housing Finance Group, making it among the most trusted lenders based on the reputation of the parent company. The mortgage company backs the app with its financial might hence giving clients assurance of transparency. Once the app has saved your details, you do not have to input the pay bill number, thus eliminating the risk of entering the wrong number. Many credit companies in Kenya are considering going the same route; hence we should see more apps in the future.
Saida credit app offers services both to M-Pesa and Airtel clients, unlike many other money lenders in Kenya. Saida uses a variety of criteria to check if you are eligible for a credit. The common criteria used to determine eligibility is your Mpesa transaction messages. Your limit is then established and then the money is disbursed to your phone.
The working of Haraka mobile money lending app is just like the above-listed apps. If you need emergency loans in Kenya then Haraka is the place to go. They offer instant nano-credits directly into your mobile wallet within minutes of your application. There are benefits for paying your credits in a good time as you will get rewarded.
To be a client, you must have a Facebook profile and then decide on your payment terms before your credit can be approved. There is considerable potential for loan apps in Kenya to thrive owing to the extensive coverage of mobile money. While it may seem that the loan app market is already saturated, it still cannot cater for all the money needs for Kenyans. That is why there is a new lending app every other day.
It becomes difficult for clients to distinguish between genuine and non-genuine lenders who are out to swindle unsuspecting Kenyans. If you stick to the above-listed loan apps, then you will be safe when it comes to mobile money borrowing.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!