Best Mobile Loan Companies & Products in Kenya
Traditional banking services are being quickly overtaken by mobile banking platforms. Bank customers can now pay bills, withdraw money, transfer money, or access loans via their mobile phones. Several years ago, you had to either visit a bank branch or go to a shylock. Of course, bank loans did not always come easy. On the other hand, Shylocks undervalue collateral and charge exorbitant interests. That explains why the idea of mobile loans is a much welcome change. We definitely love the idea of accessing unsecured mobile loans in Kenya.
Technological developments have revolutionized how we access loans. Thanks to this, you can now access instant mobile loans in Kenya. The idea of accessing unsecured loans with no paperwork could not come at a much better time. Well, maybe it could have come earlier to save us the hustle. Bottom line is that we are glad that there exist companies that offer loans via mobile phones.
Below are the best, or most popular, mobile loan companies in Kenya:
1. Safaricom – Mshawari
Safaricom is the biggest communications company in Kenya. The company was founded in 1997 and it introduced its mobile loan service in 2012. Mshwari is Safaricom’s product that offers loans via M-Pesa. To be eligible for loans, you have to have attained 18-years of age, be a registered and active M-Pesa user for 6 months minimum, and activate Mshwari. The loans come at an interest of 7.5% with a repayment period of 30 days. The minimum loan limit is Ksh. 100.
2. KCB – KCB M-Pesa
Product: KCB M-Pesa
The KCB M-Pesa loan product is as a result of a partnership between Kenya Commercial Bank (KCB) and Safaricom. KCB M-Pesa allows you to borrow loans of between Ksh. 50 and Ksh. 1M. To be eligible, you must be at least 18 years old, have a registered M-Pesa account that has been active for at least 6 months, and an updated M-Pesa menu. The interest rates are 1.16% per month with a one-off negotiation fee of 2.5%. This product is found in the M-Pesa Menu under the ‘Loans and Savings’ option. This is undeniable one of the best mobile phone loans in Kenya.
3. Equity Bank – Eazzy Loan
Product: Eazzy Loan
In 2016, Equity Bank introduced a suite of digital products. Eazzy Loan was among them and it allows Equitel subscribers to access loans easily. After downloading the banking app, you are required to open an account so that you can be eligible for an Equitel line. You are required to have saved same money for some time before accessing the loan product. Eazzy Loan features an interest rate of between 2% p.m and 10% p.m. The exact rate is determined by your risk rating. Delayed payments are charged an extra 6% pa above normal rates. The minimum loan amount is Ksh. 1,000.
4. Branch International – Branch
If you are a registered and active M-Pesa user with a Facebook account, you can access Branch loans. The minimum loan amount is Ksh. 1,000 repayable in three weekly installments. The interest rates are dependent on the repayment period.
5. Tala Mobile – formerly Mkopo Rahisi
Tala was formerly known as Mkopo Rahisi. This is one of the most popular loan apps in Kenya. To qualify for a loan, you first download the app and then link it to your Facebook account. The minimum amount of loan that you can access is Ksh. 500. The interest rate is 11% with a repayment period of three months. This app is popular for giving instant online loans in Kenya.
Other popular mobile lenders are Saida, Pesa na Pesa, Kopa Chapaa, and Pesa Pata. Access to mobile loans in 2016 in Kenya rose and that may explain the increase in the number of companies offering similar services. The idea of instant online loans in Kenya has been received well. It is likely that more mobile lenders will emerge in 2017 and beyond.