LOANS APPS IN KENYA

Looking for Loans apps in Kenya? Lucky, you. Kenya has many options for you to access instant loan apps online, that offer immediately processed loans.

Though there are many options out there, here we will highlight the 10 most popular Loans Apps in Kenya that make it the process of borrowing and repayment as simple as possible.

Featured are mobile loan apps, p2p borrowing sites, as well as mobile-based solutions.

Keep in mind that these services mostly provide micro-loans. Although they are quick and unsecured, the downside is that they are often small, but with a good repayment history you gradually gain access to bigger loans.

The loans disbursed range from Sh.1,000 up to Sh.1,000,000. If you are looking for a business loan.

MSHWARI

First on the list is the most common, but often abused micro-borrowing platform. You automatically qualify for Mshwari Loan once you have been active on Mpesa for at least six months. The platform has been around since 2012 and it has certainly served many Kenyans well. The best part about Mshwari Loan is that the loans are instant, only limited by your loan limit.

The minimum loan amount is Sh.100 and you can gradually raise your Mshwari loan limit to Sh.20,000. Your loan limit is determined by Safaricom, based on your Mpesa transaction history and past loan repayments.

All mshwari loans have a repayment duration of 30 days at a flat 7.5% interest rate. If you default on an Mshwari loan, the repayment period is extended by an additional 30 days while an additional 7.5% facilitation fee is applied. Thereafter, you will lose access to Mshwari for 30 days for late loan repayment.

• Eligibility: Be a registered & active Mpesa user for over (6 months)
• Minimum loan amount: Sh. 50
• Maximum loan amount: Sh. 1,000,000
• Repayment duration: 30 days
• Loan Interest: 7.5%

KCB MPESA LOAN

KCB Mpesa Loan is one of the favourites, in fact, I prefer it to Mshwari. To qualify, you only need to have an active Mpesa account. You can find the KCB Mpesa menu under the loans and savings option in Mpesa. The service is facilitated by KCB bank, but it is separately managed from the usual KCB accounts. You can have a KCB Mpesa even if you are a current customer of the bank.

The minimum loan amount issued is usually Sh.100. However, as compared KCB often offers much better loan limits compared to Mshwari. Plus, it is much easier for your loan limit to increase, with the maximum amount issued pegged at Sh.1,000,000.

Their repayment structure is preferred since they charge 1.16% per month with a one off negotiation fee of 2.5%. The cost for the one month loan is 3.66% with excise duty applicable on fees.

Eligibility: Be a registered & active Mpesa user for over (6 months)

• Minimum loan amount: kshs 50
• Maximum loan amount: kshs. 1,000,000
• Repayment duration: 1 – 3 months.

Loan Interest: 1.16% per month with a one off negotiation fee of 2.5%. The cost for the one month loan is 3.66% with excise duty applicable on fees.

BRANCH LOAN

Branch are one of the best providers of micro MPESA-loans. Branch works exclusively through a mobile app, though their mobile apps seems to invade ones privacy as it works by accessing your Facebook account.

The other providers on this list require you to have an android phone to make it easy for the app to gain access to your Mpesa transaction messages. These are used to determine your eligibility and loan limit.

You will have to start by accessing the minimum loan amount offered at Sh.1000. Each successful repayment increases your loan limit while lowering your interest rate. Branch is one of the best mobile loan app providers and is highly recommended.

The repayments must be completed through 3 equal weekly installments.

• Access Branch loans by downloading the Branch App from the Play Store
• Eligibility: Be a Registered and active Mpesa user, Facebook account, and access of more SMS and Mpesa transaction messages on your phone.
• Minimum loan amount: kshs.1000
• Maximum loan amount: Sh.20,000
• Repayment duration: 3 equal weekly installments

SAIDA LOAN APP

Saida is a Mobile app, that is very similar to Branch and Tala, although it is difficult to qualify for their loans. To be eligible, you need to be very active on Mpesa/Airtel Money and make transactions every two days; make and receive calls/sms daily; proof of income that is enough to allow you to pay back the loan.

• To access Saida, download the app from the Fill in your mobile number and wait for an invitation to access loans.
• Minimum loan amt: shs.600
• Maximum loan amt: Sh.15,000
• Repayment duration: 30 days
• Loan interest rate: 10%

ZIDISHA

Zidisha is a p2p lending platform. Peer-to-peer lending, sometimes abbreviated P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders directly with borrowers.

Zidisha is a non-profit organization that connects borrowers from Kenya and across Africa, with lenders from North America and Europe.

• Minimum loan amount: $100
• Maximum loan amount: $10,000
• Repayment duration: weekly or monthly installments
• Loan interest rate: None.

TALA INSTANT MOBILE LOANS

Tala was the the first instant mobile loans app launched in Kenya as Mkopo Rahisi in 2014. To access Tala loans , you need to have an android smartphone as well as an active Facebook account.
To start, simply download the Tala App from the Google PlayStore. Launch the app and link your Facebook account and you will be ready to start using the service.

Before borrowing a loan, you will be asked a few personal questions that will determine whether you qualify for a loan. However, the app mainly depends on reading your mpesa transaction history to determine whether you will be allowed access to Tala loans.
The minimum loan amount offered is Sh.500, while it can increase to Sh.50,000 on the back of a good repayment history. You are supposed to pay the loan back in 3 weekly installments while the interest rate is pegged at 15%.

• Minimum loan amt: ksh.500
• Maximum loan amt: kshs.50,000
• Repayment duration: 3 equal weekly installments
• Loan interest rate: 15%

KIVA

Kiva is a p2p borrowing platform that is quite similar to zidisha, although it does not work quite as well as Zidisha locally.

• Minimum loan amt: Dependent on lenders
• Maximum loan amt: Dependent on lenders
• Repayment duration: Not specified
• Loan interest rate: 34% (varies by country and partner)
• Loan disbursement mode: via PayPal/Kiva account

KOPA CHAPAA

Kopa Chapaa is Airtel’s Version of Mshwari although it has been around since 2012. While Mshwari loans are facilitated by CBA Bank, Kopa Chapaa is facilitated by Faulu Bank. To be eligible for the loan, you must have been an airtel money user for at least 6 months.
The minimum amount disbursed is Sh.500 while the maximum is Sh.100,000. However, the loan has a surprisingly short repayment duration of 10 days. I believe that this is a very major drawback since KCB Mpesa offers an option of paying back the loan in up to 3 months.

• Eligibility: Be an active Airtel Money User
• Minimum loan amt: kshs.500
• Maximum loan amt: kshs.10000
• Repayment duration: 10 days

PESA PATA

This service facilitated by Paddy Micro-investments is one of the lesser known, but still highly efficient provider of micro-loans in Kenya. Pesa pata has been around since 2012. To be eligible for the service, the only requirement is that you must be an active Mpesa user, along with an active Facebook account.
To use Pesa Pata, download the and install the App from the Playstore, and send in your loan application fro the App. However, you will be required to pay a Sh.100 processing fee before your loan is approved/declined.

The loan interest rate is one of the highest at 30% while you are expected to make weekly repayments via Mpesa.

PESA NA PESA (PNP)

Pesa na pesa goes last on the list because it requires physical registration with the company, but this is done only once. Also, you have to provide a form of collateral when borrowing larger loans.

• Minimum loan amt: kshs 500
• Maximum loan amt: kshs. 10,000
• Repayment duration: 10 days
• Loan interest rate: 10%

AIRTEL MFANISI

M-Fanisi the mobile based bank account that is available to only Airtel Money registered customers, bundles Loans, Savings and Fixed deposit options in the initial offer. ‘M-Fanisi’, is offered to Kenyans through Airtel who would like to have quick easy access to loans.

Airtel M-Fanisi offers:

• 7 to 30 days loans at 3% to 7.5% one-off facilitation fees respectively.
• Fixed deposit account for a period up to a maximum of 12 months and earn attractive interest of up to 11.25% p.a.
• Savings account and earn interest of 7% p.a.
• Money transfers in and out of the M-Fanisi to Airtel Money for FREE.

To apply for M-Fanisi using your Airtel Account follow the steps below:-

• Dial *222*3#and select M-Fanisi.
• Accept the product terms and conditions.
• Confirm your registration details.
• Then enter your Airtel Money PIN to activate.

Before taking a loan it is wise to read our 5 Questions to ask yourself before you take a Loan.

See: How to apply Fuliza Mpesa Loan

See how to apply for these top 10 Loan Apps in Kenya, KCB Mpesa Loan, Saida Loan, MShwari, Timiza Loan, Branch Loan, Okash loan, Tala Loan.

Mkopo Rahisi, is a mobile-based loan service owned by InVenture Mobile Limited (Tala).

Using an app they instantly scores individuals and offers Mpesa loans to those who lack access to formal financial services.

One does not need to have a bank account to access a loan, but he or she must own a mobile phone with mobile money platform MPesa and a connection to social media sites, such as Facebook.

Mkopo Rahisi profiles prospective customers using their financial transactions, as well as the data on their social media accounts and web searches. From this, it works out the terms of loans and delivers the money instantly through Mpesa to their mobile phones.

Mkopo Rahisi pays a maximum of Sh10,000 at interest rates of between 5 and 15 per cent.

Founded in 2012, InVenture is based in New York and has offices in Santa Monica, New York and Nairobi. The app’s main competitor is M-Shwari, which is a partnership between Commercial Bank of Africa (CBA) and Safaricom.

Mkopo Rahisi loan app was launched in Kenya in March 2014, and has since expanded to Tanzania, with its eye on more African markets.

The app, available through Android’s Google store, was as a result of more than 3, 000 interviews of individual borrowers across countries in Africa over two-and-a-half years.

Currently, it has been downloaded over a million times. By end of 2015 it had more than 50,000 active customers and disbursed 120,000 loans to middle and low-income Kenyans.

“From the start of the loan application to the receipt of money can take as little as two minutes. Of our users, 88 per cent are done with the loan application in under 10 minutes,” said Mkopo Rahisi Kenya Business Director Ronald Maira.

He added that the idea of short-term loans requiring no collateral has been a key selling point for them, which has seen the app register a client return rate of 92 per cent.

The credit company depends on social media platforms and testimonials from previous beneficiaries to grow its customer base. Some of the key components that Mkopo’s risk analysis encompasses are M-Pesa transaction history, social network activity, education, employment, browsing history, spending patterns and previous loan history.

The company plans to increase its credit limit to Sh100,000 in the future, especially for customers with a strong repayment history. Of the loans disbursed so far, 55 per cent have been for purposes of business, and 19 per cent for travel expenses.

A further 14 per cent have been taken by customers who wanted to attend to emergencies. Among those who took out loans for business, 42 per cent used the money to boost their stock, while 23 per cent used it to start a business. Vincent Mbogori runs an electronics shop in Nairobi, and said he has so far taken 43 loans at an average Sh6,000 each time to boost his business. “I have established a good relationship with Mkopo Rahisi since last year, and now I borrow up to Sh7,000, sometimes at an interest rate of 10 per cent,” he said, adding that he hopes to see the credit limit increased to at least Sh20,000. The app determines interest rates based on a customer’s credit score.

Top on the list of worries of any financial lender is borrowers who default on their loans, a concern Mkopo Rahisi shares. The app relies on information from InVenture — which currently operates in Eastern Africa, South Africa and India — that is collected from an applicant’s mobile phone for a real-time credit score. With this, defaults have remained below 12 per cent, Mr Maira said.

“With the user’s permission, InVenture collects data from the applicant’s mobile device to verify identity, build financial, behavioural, and social characteristics for our proprietary algorithm, and to customise the loan terms to his or her unique circumstances,” he added.

Financial muscle: The capital required to get Mkopo Rahisi off the ground was injected by InVenture and other institutional capital providers. Since then, the app has built its financial muscle through Google Ventures, Lowercase Capital, Data Collective and Collaborative Fund.

Having tested the Tanzanian market, Mkopo hopes to get into more African markets in the next three to six months, and plans to hire a regional director to oversee East African markets. It will also soon migrate from a web app to a native app to increase its service speed and optimise it for low-speed data connections in Kenya. “We hope that through this, we will be able to provide all Kenyans with fair and flexible financial products,” said Maira.

Before taking a loan it is wise to read our 5 Questions to ask yourself before you take a Loan.

See: How to apply Fuliza Mpesa Loan

Check out these Top 10 Loan Apps in Kenya, KCB Mpesa Loan, Saida Loan, MShwari, Timiza Loan, Branch Loan, Okash loan, Tala Loan.

Tala loan app formerly Mkopo Rahisi has been nominated for Google Play Awards 2018 which takes place on Monday, May 7^th.

Google Play Awards (Google I/O 2018) recognize top apps and games on Google Play every year, represent some of the best experiences available on Android, with an emphasis on overall quality, strong design, technical performance, and innovation.

Tala loan app as one of the nominees, has been selected by various teams across Google, meeting the criteria thresholds covering high star rating, Android vitals, and have had a launch or major update since April 2017.

The nominated Apps including the Tala loan app were picked by looking at the following features:

• The best experiences available on Android
• Good quality
• Design
• (Technical) Performance
• Innovation
• High star rating on the Play Store
• Received at least one major update over the last one year
• Get all the Android vitals right

The apps that are picked by the Google teams, 5 per category, are considered as nominees out of which the winners will be picked and announced during Google I/O.

Tala, a global leader in mobile-first financial services for underserved consumers, has also announces a Ksh 6.5billion (US$65 million) in new investment to power the growth of its Tala loan app.

Tala operates in Kenya, Tanzania, and the Philippines, where it has delivered credit to nearly 1.3 million customers and originated more than $300 million.

Tala plans utilize the funds to focus on product development and growing human talent capacity in Kenya and expand its services to cover Mexico and India.

In Kenya, Tala has disbursed over 5.6 Million loans to over 1 million customers with an origination value Ksh 28 billion (US$280 million). Tala loan app, which was Kenya’s first unsecured smartphone lender, has over 2.7 million APP downloads in Kenya and it’s ranked as one of the top financial applications in Kenya.

Early in the year, Google also recognized numerous apps in the Android Excellence Awards.

Congratulations to Tala loan app and all the other nominated apps on this year’s list of apps on Google Play Awards Google I/O 2018.

Before taking a loan it is wise to read our 5 Questions to ask yourself before you take a Loan.

To apply for an Mpesa Loan check out these Top 10 Loan Apps in Kenya, KCB Mpesa Loan, Saida Loan, MShwari, Timiza Loan, okolea Loan, Okash Loan, Branch Loan.

See: How to apply Fuliza Mpesa Loan

Tala formerly Mkopo Rahisi is used by most Kenyans taking out its Tala app loan to help them keep their business running.

For most business owners in Kenya, their customers buy their products on credit forcing them to borrow so that they can go to the market and buy goods for sale as they wait for payment. Accessing these numerous mobile loans to start a business has become a quick solutions for most entrepreneurs.

Mobile loan companies such as Tala formerly Mkopo Rahisi are expanding their business in Kenya, using it as a testing ground for the financial industry. Kenya has faced criticism recently, driven by fears that without effective regulation, these efforts to spread loans to borrowers could damage the achievements of mobile payments.

Effects of the Tala app loan

A study conducted by Tala formerly Mkopo Rahisi, highlights the effects these Tala app loan have and why access to the loans alone is not enough. The study pulled data from 795 randomly selected Tala customers, most of whom are educated, between the age of 25 to 34 years, and earning $2 to $19 a day. The Tala loans supports customers deal with unforeseen emergencies, enable them finance their small businesses, and also helps reduce the borrower’s stress levels.

15% of Tala customers say they use Tala app loan to start a business, a side hustle as Tala formerly Mkopo Rahisi calls it. 70% of business people who use Tala loans, use it to cushion irregular income and expenses. Only 15% used the Tala loan primarily for business expansion, possibly because these loans are short-term loans that usually range from 2,000 to 10,000 Kenyan shillings. Tala is at present working to offer higher value loans.

According to Tala, some Kenyans do repeat borrowing even when they don’t need the loan just to build their credit limit, which will allow them secure a bigger loan amount when they need it. Tala loan app has membership categories (bronze, silver, and gold) that set the allowed loan amount a member can borrow. Gold category allows the member to borrow between 10,000 to 50,000 Kenyan shillings.

It is also important to note Tala formerly Mkopo Rahisi shares their credit history file both positive and negative performance on their Tala app loan to credit reference bureau in Kenya. About 95% of Tala customers do not know this.

Understand the terms of your loans

Kenyans new to mobile loans must get support from loan suppliers like Tala formerly Mkopo Rahisi to understand the terms of these loans, their advantages and consequences. The financial industry in Kenya must consider how to address financial literacy in addition to loan delivery.

Some of the improvements Tala has brought to the table for their Tala app loan is the new reminders, like the importance of paying bills on time, or the risk of taking on too much debt before the holidays, then testing which messages appear to work well with their customer base. Tala has also launched a Q&A discussion they call “Q&A Friday” on their Facebook page so that they can reply to customer questions on social media.

Most of Tala customers in Kenya have fairly high access to loans, with about 2 percent of Tala customers in Kenya using “shylocks,” or loan sharks, who can be exploitative. There are also fears about risks including over borrowing since mobile loans have become too easy to access and common.

In 2013 Tala formerly Mkopo Rahisi launched their Tala app loan in Kenya. It was one of the few if not the only mobile loan company in service. Kenya was also their first market, today they are in Kenya, Tanzania, Mexico, and the Philippines, with a pilot in India. Tala also has an investment from PayPal, working on its $65 million Series C funding round, which will assist the company grow its worldwide reach.

Before taking a loan it is wise to read our 5 Questions to ask yourself before you take a Loan.

Check out these Top 10 Loan Apps in Kenya, KCB Mpesa Loan, Saida Loan, MShwari, Timiza Loan, Branch Loan, okolea loa, Okash loan, Tala Loan.

See: How to apply Fuliza Mpesa Loan

Tala formerly Mkopo Rahisi is used by most Kenyans taking out its Tala app loan to help them keep their business running.

For most business owners in Kenya, their customers buy their products on credit forcing them to borrow so that they can go to the market and buy goods for sale as they wait for payment. Accessing these numerous mobile loans to start a business has become a quick solutions for most entrepreneurs.

Mobile loan companies such as Tala formerly Mkopo Rahisi are expanding their business in Kenya, using it as a testing ground for the financial industry. Kenya has faced criticism recently, driven by fears that without effective regulation, these efforts to spread loans to borrowers could damage the achievements of mobile payments.

Effects of the Tala app loan

A study conducted by Tala formerly Mkopo Rahisi, highlights the effects these Tala app loan have and why access to the loans alone is not enough. The study pulled data from 795 randomly selected Tala customers, most of whom are educated, between the age of 25 to 34 years, and earning $2 to $19 a day. The Tala loans supports customers deal with unforeseen emergencies, enable them finance their small businesses, and also helps reduce the borrower’s stress levels.

15% of Tala customers say they use Tala app loan to start a business, a side hustle as Tala formerly Mkopo Rahisi calls it. 70% of business people who use Tala loans, use it to cushion irregular income and expenses. Only 15% used the Tala loan primarily for business expansion, possibly because these loans are short-term loans that usually range from 2,000 to 10,000 Kenyan shillings. Tala is at present working to offer higher value loans.

According to Tala, some Kenyans do repeat borrowing even when they don’t need the loan just to build their credit limit, which will allow them secure a bigger loan amount when they need it. Tala loan app has membership categories (bronze, silver, and gold) that set the allowed loan amount a member can borrow. Gold category allows the member to borrow between 10,000 to 50,000 Kenyan shillings.

It is also important to note Tala formerly Mkopo Rahisi shares their credit history file both positive and negative performance on their Tala app loan to credit reference bureau in Kenya. About 95% of Tala customers do not know this.

Understand the terms of your loans

Kenyans new to mobile loans must get support from loan suppliers like Tala formerly Mkopo Rahisi to understand the terms of these loans, their advantages and consequences. The financial industry in Kenya must consider how to address financial literacy in addition to loan delivery.

Some of the improvements Tala has brought to the table for their Tala app loan is the new reminders, like the importance of paying bills on time, or the risk of taking on too much debt before the holidays, then testing which messages appear to work well with their customer base. Tala has also launched a Q&A discussion they call “Q&A Friday” on their Facebook page so that they can reply to customer questions on social media.

Most of Tala customers in Kenya have fairly high access to loans, with about 2 percent of Tala customers in Kenya using “shylocks,” or loan sharks, who can be exploitative. There are also fears about risks including over borrowing since mobile loans have become too easy to access and common.

In 2013 Tala formerly Mkopo Rahisi launched their Tala app loan in Kenya. It was one of the few if not the only mobile loan company in service. Kenya was also their first market, today they are in Kenya, Tanzania, Mexico, and the Philippines, with a pilot in India. Tala also has an investment from PayPal, working on its $65 million Series C funding round, which will assist the company grow its worldwide reach.

Before taking a loan it is wise to read our 5 Questions to ask yourself before you take a Loan.

Check out these Top 10 Loan Apps in Kenya, KCB Mpesa Loan, Saida Loan, MShwari, Timiza Loan, Branch Loan, okolea loa, Okash loan, Tala Loan.

See: How to apply Fuliza Mpesa Loan