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Ways of accessing unsecured loan on your mobile phone in Kenya

When processing a loan from a bank in Kenya there are plenty of requirements that a bank requests for before one qualifies for a loan.  One of the major problems that hinder individuals from acquiring loans from banks is access to security.  Application for a bank loan requires an individual to provide land title deed, log book or any other document to prove one’s creditworthy.  These requirements have hindered so many people from accessing finance since most of the loan seekers are young people or high risk start-ups usually SMEs who lack collateral. Another requirement is guarantors; anyone wishing to   access a loan from a bank will be asked to give names of one or more people to serve as guarantors. Guarantors are not easy to come by, as they fear being asked to settle the loan in case of default. Apart from the mentioned setbacks, there is too much paperwork and waiting before a loan is released. 
The emergence of mobile banking and mobile loan facilities has changed the way people can access loans in Kenya.  One does not need to adhere to all the requirements needed by the traditional banks.
Below are some of the viable, sure and tested ways of accessing unsecured loans onlineand via mobile phones:-

Mshwariis a loan provided by Safaricom Limited a mobile telecommunication service provider in Kenya. To qualify for a loan with Mshwari, one needs to be an active registered Mpesa user for a period of not less than six months. Mshwari loans are based on Mpesa transaction and loan repayment history.  Loans are given at an interest rate of 7.5% for a period of one month.  The minimum loan amount is Kshs. 50.00 and the maximum is Kshs. 1,000,000.00

Easy pay loan
This is a service offered by Equitel,a subsidiary of Equity Bank. The service is offered to Equity Bank account holders with Equitel line.The loan amount is determined by a person’s banking and repayment history.   Loans are advanced at an interest rate of 1.16% plus a one off insurance fee based on the about loaned.
                                                    
KCB Mpesais a service offered by Kenya Commercial Bank in partnership with Mpesa. One doesn’t have to be a customer of Kenya Commercial Bank to qualify for KCB Mpesa loan as long as you are a registered Mpesa user you are ready to go.  KCB Mpesa loan can be accessed via Mpesa menu under Mshwari loans.  The interest rate is 1.16% per month with a one off 2.5% negotiation fee.  The minimum loan amount that can be borrowed is Kshs.50upto a maximum of Kshs. 1,000,000.00 payable in 1 to 3 months as per a customer’s preference.

Branch International is a company that offers loans on mobile phones.  To access Branch loan, one needs to install Branch application on an android phone, register by giving a few personal details then apply for a loan.
The amount offered is based on Mpesa transaction details. The minimum loan amount offered is Kshs. 1,000 payable in four equal installments while the maximum amount of loan offered is Ksh. 20,000.00. The interest rate is variable depending on repayment history.

Tala

Formerly known as Mkopo Rahisi, Tala is an application once downloaded on a smart phone,one is able to access loan by registering with the app.  Tala uses Mpesa information to verify a client’s identity, creditworthiness and the amount to be offered. The amount of loan advanced increases when a client builds a good reputation by paying on time.The minimum amount one can borrow is Kshs. 500.00 upto Kshs. 50,000.00. Credit is offered at an interest rate of 15% payable within a month in weekly installments.

 To use Saida services, download Saidia app on a smart phone and answer a few personal questions. Loan eligibility depends on Mpesa and Airtel Money transactions history.  The minimum amount advanced is Kshs. 600 and the maximum is Kshs. 15,000.00.  One also needs to be an active user of voice calls, sms and data services.  Loans are given at an interest rate of a 10% for a period of one month.

Zidisha
An online lending community, Zidisha directly connects lenders and borrowers all over the world.Zidisha loan is interest free, however a one off 5% service fee is charged. To use Zidisha service one needs to have a smart phone or internet access.For a start, one is offered a small amount of loan to test a person’s creditworthy, thereafter the amount increases gradually with each consecutive loan repaid on time.Repayment terms are weekly and monthly depending on the amount and an individual’s choice.
Zidisha loan is a bit inflexible as apart from providing personal details one is required to give mobile numbers of seven people close to the loanee as referees.

Apart from the mentioned loan providers, various banks are now encouraging their costumers to transact on phone thus enabling them to access loans anywhere at any time. Go on and acquire a loan from a service provider of your choice.
Feel free to comment or ask a question.  We would love to hear your feedback.

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