Thinking of borrowing a loan? Then below are loan apps available in Kenya that you can resort to.
As an individual or business owner, you may encounter situations where you require swift financial assistance to address unexpected and urgent personal or business needs. Obtaining such assistance through traditional financial systems can be arduous. Often, loan approvals may take up to a week, burdened by suffocating bureaucracy, leading to significant delays between application and receipt.
For starters: A loan app is an application on your phone that you can use to borrow loans. Most of them are easy to use and simple to navigate.
1. Loans provided by Safaricom
Despite being a network telecommunications company, it also provides loans that can be easily accessed. There are three usual ones, which are:
Fuliza, Mshwari, and KCB Mpesa, If you still don’t know how to use them, you can consider visiting the nearest Safaricom Shop or even an agent to learn how to access the loans, or even better, dial *100#.
What follows are apps that can be downloaded from the Google Play Store.
2. Zenka Loan App, Kenya
The Zenka loan app provides users with access to loans of up to KSh 50,000, making it a reliable choice for individuals in need of immediate financial assistance.
The lender offers loans ranging from Ksh 500 to Ksh 30,000, attracting an interest rate of 9–30% of the loan amount.
3. Tala Loan App
Tala loan app has extended over 3.4 billion to its customers to start businesses, pay fees and bills, and build better financial lives. It is CBK-regulated, so you are protected as a borrower.
You can access up to Ksh. 50,000 in loans at a daily interest rate of 0.3% per day. Tala also charges a one-time fee per loan of 15%, which reduces to as low as 5% as you build your credit history with the app.
4. KCB Mpesa
This is a mobile loan facility due to a collaboration between Safaricom and KCB Bank. It comes integrated into your Mpesa menu, so you only need to use your Mpesa app.
The minimum amount you can get from KCB Mpesa is Ksh. 50, while the maximum amount is Ksh. One million, making it one of the highest-limit mobile loan service providers.
5. Opesa Loans
This is one of the older loan apps popular among Kenyans. The minimum amount you can get from the app is Ksh. 1,500, while the maximum amount you can get is Ksh. 50,000.
The app’s interest rate is 16.8%, with a repayment period of 65–91 days.
6. MCO-op Cash
In Kenya, Mcoopcash also provides excellent mobile lending services. However, in order to be eligible for and receive a loan, one must be an account member. Depending on your eligibility, you can borrow between Ksh 1,000 and Ksh 500,000 using this mobile loan app. Interest rates are typically 8% each month.
The loans must be repaid in one to three months. To apply, you will want a valid salary account, a KRA pin, and a national ID or passport.
7. Tala App
With Tala, you can borrow Ksh 2,000–KKsh 30,000, depending on your creditworthiness. Tala loans mostly come with a 14-day repayment period and attract a 15% interest rate.
After failing to beat the deadline, Tala levies an 8% flat rate penalty. You need a smartphone, a national ID, and good CRB standing to qualify for a Tala loan.
8. iPesa Loan App
One of the most popular mobile lending apps on Google Play is called iPesa. With this iPesa Limited loan product, you can borrow between Ksh 500 and Ksh 50,000 at an interest rate of 18% of the total loan amount.
The loan terms begin after 14 days, and there is a 2% daily penalty for missing the short-term deadline. To be eligible for an iPesa mobile loan, you must have a smartphone, an M-PESA registered line, a valid national ID, and excellent credit standing.
How to Choose the Right Loan App
Below are some of the things that you will need put into consideration before applying for that loan.
Interest Rates and Fees
Generally, all loan apps in Kenya charge higher interest rates and fees. This is because of the increased risk associated with issuing collateral-free loans.
Loan Term and Repayment Options
Make sure you have read the terms of the loan and understand them all before agreeing to them. You can find certain lending applications to contain terms for loans that are not to your liking. Make sure to interpret the hints given.
Reputation and customer reviews
A loan app’s reputation is another crucial factor to consider. You do not want to end up with a loan from an app that will charge you exorbitant hidden fees or bully you around because they lent you some cash.
One way you can know about a loan app’s reputation is by going through the customer reviews section in the Google Play Store or Apple Store. This will give you a feel for what previous customers have said about the app.