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.

Blockchain microfinance micro loans will be extended to 220 food stall retailers across Kenya through a partnership between IBM Research and Twiga Foods.

Twiga Foods which is a business to business logistics platform for kiosks and food stalls in Kenya were looking to extend their logistic services into a total market ecosystem by adding financial services.

According to Isaac Markus, the IBM Kenya Researcher, IBM has been looking to spearhead efforts for blockchain rollout on their open standards. They choose Kenya to introduce blockchain microfinance because their targets aligned with the Kenyan government’s big four agenda which includes:

1. Affordable and decent housing
2. Manufacturing
3. Food security
4. Universal healthcare

IBM Kenya Researcher partnership with Twiga Foods is a first of its kind and the result of the project will be the evidence to the positive effect of the blockchain technology and its use to our everyday life.

There has already been an 8-week pilot this year which processed more than 220 blockchain microfinance micro loans with the average loan worth $30. The loans were for 4 and 8 days with an interest rate of 1% and 2% respectively. The loans were cashless and went directly to the capital for the businesses.

When a retailer had an order delivered, they would receive an SMS with the blockchain microfinance micro loan options for financing that order. They would then reply to the SMS confirming the loan option that they wanted.

At the end of the pilot, users reported the value and utility for the technology with many of them becoming repeat users.

IBM said that they are looking at opportunities locally to offer more blockchain microfinance. They said that financial services, supply chains, IoT, risk management, digital rights management and healthcare are some of the areas that are poised for dramatic change using blockchain networks in South Africa.

This project will see Twiga Foods, the Kenya based startup, use machine learning and the blockchain technology to determine a credit score and distribute blockchain microfinance micro loans for small food stands across Nairobi.

The technologies address a basic challenge in the region, how can businesses get access to microloans without a credit rating to scale-up their businesses.

This platform links SME’s, banks and FMCG’s to enable access to working capital and assist the SME in developing a financial profile or identity.

OKash loan app by Opera Group subsidiary Opay has hit over Sh10 Million transactions daily, only just two months after its launch.

The mobile phone-based loan app available on Google Play, was launched in March and currently has over 100,000 daily active users with total downloads of about 300,000.

Opera managing director Eddie Ndichu said this shows demand for shorter term loans in the market with incentive for earlier repayment.

“We know that there are more than 20 million people in Kenya who use loans actively every day and we want to give them a high-end product with an exceptional user experience to make their life more comfortable when applying for and making payments with loans,” said Mr Ndichu.

Users download OKash loan app and set up accounts using their MPesa accounts. By filling out a set of questions, users get an answer on their loan application through their mobile phones.

OKash loans start as low as Sh1,500 and go up to Sh500,000 at an interest rate of one per cent daily, repayable within 14 days. The faster a user pays off an active OKash loan, the sooner they can request for a new loan.

Customers paying their loans on time and consistently can apply for a single loan of up to Sh500,000 at five per cent.

To repay the OKash loan, the customer needs clicks on the payment button on the app and it’s processed through the MPesa STK push service. The amount is debited directly from the user’s MPesa wallet.

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

Check out the other Top 10 Loan Apps in Kenya, KCB Mpesa Loan, Saida Loan, MShwari, Timiza Loan, okolea Loan, Branch Loan, Tala Loan.

See: How to apply Fuliza Mpesa Loan

Bad debt and how to get out of debt in Kenya may not be the easiest thing for most Kenyans.

Kenyans are under increasing financial pressure due to high unemployment and increase in living expenses such as food, rent, utility bills, transport, and the VAT rate. As a result it has become a challenge to manage and pay off bad debt.

Most people fall into a bad debt spiral because of unforeseen circumstances. This may include medical expenses, job loss, divorce, not saving enough or ones income not keeping up with increased costs of living in Kenya.

Then there are some “foreseen circumstances” that can be avoided, but often are not. These include uncontrolled gambling habits especially with the rise of betting firms in Kenya and poor money management.

Kenyans with who managed to keep up with their renegotiated debt repayments for many years are now struggling to maintain their monthly instalments in debt review which raises their risk on entering into bad debt.

Most banks and lending firms have had to renegotiate some of their agreements because Kenyans are simply unable to make ends meet.

Below, we have provide advice on how to manage and pay off your bad debt, and what to do when you’re in over your head.

How much bad debt can you handle?

There are some general rules of thumb to determine how much bad debt one can take on. Although the decisions may vary from person to person, you should not spend more than 30% of your income on a mortgage bond, as this is generally the largest chunk of household debt.

“It is important to draft an honest budget and carefully look at your current spending patterns and what your current income is.”

Always allows for an “expense buffer” for unforeseen expenditure such as medical expenses or a car that breaks down or gets stolen.

The minute you find that you are unable to service your bad debt, the trouble starts.

If you are in the unfortunate position of having to sell your house at short notice, you might find yourself being in an even worse situation.

For example, during the 2007/08 financial crisis in Europe and America, many people were forced to sell their homes. But because of market conditions at the time, many consumers still had outstanding debts, even after selling their homes.

Honest budgeting is also important, because many credit providers still offer more credit than what people can afford.

“Do not fall into the trap of buying things you do not need to impress people you don’t even know.”

Good debt versus bad debt

Debt is normally considered “good” when you use it to obtain an asset that increases in value over time or has “income producing capacity”,

A study loan (income-producing capacity) or a mortgage bond on a property (increased value) is generally considered good debt.

Some people consider vehicle financing “good debt” if it has income-producing capacity (If you consider using it for Uber), but this mostly doesn’t work as well as it’s perceived.

Because a car depreciates in value, this kind of debt cannot really be considered good. “Anything where you have to finance spending, such as short-term loans for a holiday, or for clothes, is considered bad debt.”

“If you start using loans and credit cards to fund your lifestyle, you are on a treacherous path, and it might lead to a debt spiral. That is a difficult space to be in,”

Debt can be broadly broken down into secured and unsecured debt. Secured debt is a loan that is granted against an asset, usually land, a house or vehicle, which is used as collateral against the loan.

Simply put, if the borrower does not honour his debt repayments over time, the lender can seize the asset and sell it to recoup their money.

The interest rate on this type of debt depends largely on the credit rating of an individual; the more creditworthy a person is, the lower the interest charged.

Unsecured debt such as credit cards and personal loans, don’t have the backing of assets to serve as collateral: “If the borrower defaults, the credit providers have to implement legal action, which can be lengthy and expensive with no guarantee of success.”

This type of debt usually comes with a higher interest rate to enrich the risk of the loan. If people have more unsecured debt in their portfolio, they are classified as “high risk” when applying for more credit.

Not only is the consumer’s credit report and credit score taken into account in the assessment, the debt-to income ratio is also considered, as well as the credit provider’s ability to collect the debt in terms of the debt-to-asset ratio.

Consumers can determine their debt-to-asset ratio by dividing their total debt by their total assets. Simply put, this ratio shows how many of one’s assets one will have to sell to cover the cost of the debt.

The right ratio is more complex to determine, as it depends on a number of factors like the type of debt and life stage of the individual.

However, if your debt is significantly higher than the value of your assets, you will be considered a risk to creditors.

Consumers should avoid using credit on “unnecessary items” and instead pay cash if they can afford it. Close unused credit accounts that are fully paid. Forgotten retail debt can have a negative impact on your credit record, especially now that a huge number of retail stores in Kenya have started giving long term credit facilities “buy now pay later”.

Also avoid using one credit card to pay off another credit card. This is not paying off debt. It is merely delaying repayment and attracting more interest.

Although there is a cap on the minimum and maximum interest rates credit providers are allowed to charge, these institutions still find ways of making money. Many try to make up the “interest cap” by charging more for insurance or upping management fees.

There are several measures available to consumers who have fallen into a bad debt spiral. But ignoring the matter is not one of them.

Getting out of a debt spiral

If you have additional funds available and are looking to pay off your debt sooner, you should aim to first pay off the debt that carries the highest interest rate.

This is unsecured bad debt such as credit cards and personal loans. Many store cards, such as clothing accounts, for example, have interest-free credit windows. Try to pay off the total bill within this period to avoid interest charges.

Do not spend more on the card before you have paid off the total, and avoid extending your payment period.

It is advantageous for consumers to pay more than their monthly instalment amount. This will reflect positively on their payment history.

Consolidating debt

Consolidating one’s debt offers consumers the opportunity to take out one large loan to cover several smaller loans. It simply means that all your debts are consolidated into one lump sum.

It might sound counter-intuitive, but if used wisely, consolidation can be an effective way to get yourself out of unmanageable bad debt.

Consolidated loans are usually longer term loans that come at a lower overall interest rate and have lower monthly instalments. However, because they are longer-term loans, it may mean consumers end up paying more.

Furthermore, consolidation loans only work if the consumer is truly disciplined. Many use the loan to pay off credit-card debt, but immediately start using the credit card once the debt has been paid.

Then they need another consolidation loan to pay the card. The debt spiral gets so out of control that nobody wants to lend them money any more.

Consumers may also consider consolidating their debt under their existing home loan. This is applicable to people whose outstanding loans are less than the value of the property.

The consumer may be able to secure a loan against their home and consolidate all their unsecured bad debt into one facility.

It is, however, important to look at the term and interest rate of the new home loan when considering this option.

Paying debt versus saving

Very few investments offer or guarantee a return of 15% or more. Consumers who have personal loans or credit card debt would be wise to first pay off these debts before starting to save. The question becomes more difficult if you have a home loan with an interest rate of, say, 10%, where there are investments where you can make a higher return.

The advice is to continue with the monthly bond payments and invest in another asset class.

The question is easier in terms of the short-term personal loans. The repayment of short-term expensive bad debt is a ‘no-brainer’.

How to get out and stay out of bad debt

There are spending habits you can control and strategies you can follow to stop digging yourself into bad debt.

When people find themselves in bad debt spiral, they should start their recovery by talking to their credit providers to try and renegotiate the terms and period of repayment.

If all feels lost, it may be a good time to reach out to a registered debt counsellor who will be able to guide you on the way forward.

The first step is to see where your debt is and what you can pay off first. The most obvious debt is to be found on credit cards and through personal loans because of the high interest rates charged.

You do want to have good debt such as a home loan or a student loan because that is how you accumulate wealth. Once you have gotten rid of your bad debt, which influences your credit score, you may even approach your credit provider or bank for better rates on your home or student loans.

Credit providers will consider your spending patterns over a period of time. Once you have got rid of your bad debt, you can certainly try to renegotiate the interest rate on your good debt, though it will not happen overnight.

Only enter into debt when you can afford it. If you cannot afford a new pair of shoes, do not give in to impulse spending. If you cannot afford to repay debt, think twice about putting another person at risk by asking them to take credit on your behalf.

Their problem is eventually going to become your problem. You should always have a basic principle of a monthly budget.

The 50/20/30 budget rule divides after-tax income into spending of 50% on needs, 30% on wants and allocating 20% to savings.

Needs include rent or mortgage payments, car payments, groceries, insurance, healthcare, minimum debt payment and utilities.

Wants include dinner, movies out, a new handbag, and holidays.

Savings include adding money to an emergency fund in a bank savings account, making retirement annuity contributions or investing in equities.

Savings can also include debt repayments. While minimum payments are part of the “needs” category, any extra payments reduce principle and future interest owed, so they are in fact savings.

The 50/30/20 rule of budgeting can help to keep spending in check. If spending in one category seems to be “abnormal” such as for clothing or entertainment, find ways to reduce spending in those categories.

New data from Transunion Credit Reference Bureau shows that more than 500,000 people in Kenya are currently blacklisted for up to seven years with Credit Reference Bureau (CRB) for defaulting on mobile loan.

Some of the borrowers defaulttalaed on loans of as little as Sh500, reducing their future probability of getting similar or much higher loan amounts from local banks.

Currently Kenyans have access to more than 50 mobile phone loan apps, making it much easier for them to get access to these 30-days repayment loans.

Most people taking these loans cannot afford them, later defaulting on payments when it’s time to pay back. This has led to more than 500,000 people in Kenya getting blacklisted by the Credit Reference Bureau (CRB).

As soon as you get blacklisted, you cannot access another loan until you repays that loan. After repaying, you may still remain in CRB’s book with a low credit rating for up to seven years, a situation that can keep banks from extending a loan to you within that blacklist period of seven years.

The blacklisted Kenyans are mostly those borrowing through mobile and simple online platforms such as Tala App, M-Shwari, KCB MPesa and the like.

Transunion Chief Executive Officer Billy Owino said most of these individuals are finding themselves blacklisted for lack of information on the penalties of defaulting paying a loan, which can even be as little as Sh500.

“Most of the borrowers do not know how they got blacklisted. We get like 200 calls daily from individuals in this category asking how they ended up in the blacklist,” said Mr Owino.

Kenyans have a pattern of borrowing from a number of platforms at the same time, without thinking about the risk they are putting themselves into, also the lenders don’t take time to check what other platforms these people have borrowed from before they give them the loans.

Considering in Kenya we have more than 50 mobile loan platforms, an individual can borrow from Tala App, M-Shwari and other platforms in a single day, and get the cash from all of them.

This is possible because most of the mobile and online loan platforms process the loan in a few minutes without checking the borrowing habits of that lender using the data provided by Credit Reference Bureau (CRB).

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

Now that you are aware of the Credit Reference Bureau (CRB) in Kenya and how it affects your file…. if you still want to get a loan, check out these Top 10 Loan Apps in Kenya, KCB Mpesa Loan, Saida Loan, MShwari, Timiza Loan, okolea loan, Branch loan, Okash loan, Tala Loan.

Okolea loan app from Okolea International has launched in Kenya.

Using your phone you can now register in just a few minutes and receive your loan through your mobile phone. According to Okolea International CEO Peter Muraya, the Okolea loan app makes it easier and faster to access money in emergency situations, and the use of mobile money makes instant payments possible.

Variety in the mobile money loan sector has grown with the launch of this new Okolea loan app. The Okolea International mobile loan app will now offer its customers a range of online loans and investment opportunities. It takes less than 10 minutes to register and receive your loan on through your mobile phone. “The app makes it easier and faster for the technology savvy and consumers who need emergency money to access it.” said Okolea International CEO Peter Muraya,

The growth of mobile money technology enables distribution of loans to Kenyans wherever they are in the country possible in real time. Okolea loan App offers loan services in a simple accessible manner. As a customer, when you want to apply for an Okolea loan; Go to Google play store and download the Okolea App, register and borrow.

In 2016 the Kenyan Government capped lending rates resulting to banks picking up competition with mobile phone service providers like Safaricom and Airtel in embracing mobile money loan apps in a bid to cut costs. The Okolea loan app joins other established money lending apps in the market such as Tala loans, Branch, Saida, Utunzi and Jazika.

The huge demand for mobile internet connectivity and mobile money transfer services has enticed prime investors into Kenya’s exciting fintech. Banks have in some cases closed some of their conventional branches in favour of more user friendly mobile phone apps.

Investors in mobile loans have been able to roll out billions of loans without necessarily attaching stringent conditions. There are currently over 25 mobile loan service providers in Kenya, with more and more new entries launching like the Okolea loan app.

Most of these mobile loan apps require the borrower to allow their apps access to their Facebook accounts, in some cases text messages and call logs. This enables them build a customer report. Loan application and payments has really been instant, creating an extremely fantastic experience for the borrowers, unlike the conventional unfriendly process by the banks, Saccos and microfinance institutions (MFIs).

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, Okash loan, Tala Loan.

See: How to apply Fuliza Mpesa Loan

We’re an information site with an opinion, offering you straightforward, trustworthy down-to-earth financial advice on how to go about getting Mobile Loans in Kenya. We want to simplify and demystify the world of consumer finance. Through simply guides we will tell you all you need to know to make an informed decision that’s best you for when seeking to apply for an Mpesa Mobile Loan in Kenya.

MPESA MOBILE LOANS ARE EXCELLENT!

The idea that today you can go online or use your phone to apply and be able to get “instant” Mpesa Loans without stepping into a bank is fabulous, but maybe you don’t know exactly which provider to choose or where to start. We also will help you with great information that will assist you make informed decisions and save you money and stress when you are ready to apply for an Mpesa Loan.

HOW WE ARE DIFFERENT

Our aim is to give you enough information on Mobile Mpesa Loans in Kenya that will help you make decisions without giving you so much that you feel completely overwhelmed and give up.

Remember as much as you may get excited about applying for a Mobile Mpesa Loan, most times you may have other avenues of making or getting the cash you very much need without necessarily applying for that loan, that’s where we come in.

Our job is to take all that information on Mobile Mpesa Loans in Kenya and pick out the important bits so you can TAKE ACTION to apply or not.

WHAT WE LIKE…

FEEDBACK AND HEARING HOW YOU GOT YOUR MPESA LOANS OR NOT.

We listen to you through MobileloansinKenya.com online comments and Facebook. We use this feedback to understand what YOU want to know and then we write about it, post new simple guides and we highlight your concerns wherever we can.

Who we are

MobileloansinKenya.com is a product of Super Cloud Services Kenya. We write for lots of other newspapers and magazines online and are obsessed with saving you money and not letting the big giants get away with wrong doing. You can email us directly with your questions through the contact us form, feedback and requests or post your comments on any news article on MobileloansinKenya.com.

Feel most welcome and see you around.

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, Okash loan, Tala Loan.

See: How to apply Fuliza Mpesa Loan

Reasons for business failure in Kenya are numerous but there are some that have more weight on why small business fail in the first year especially.

How is your business currently doing? Do you feel like your business is growing? Are you making profits? Today more than ever, we are experiencing one of the highest level of business failure in Kenya. Business failure doesn’t just happen overnight, generally there are early signs that are usually ignored. When running your own business, it’s crucial to pay attention for the red flags highlighted here.

Why small business fail is always going to be more or less the same, keep a close eye on your business to enable you identify the causes of business failure. Things to watch out for are:

1. Problems paying regular PAYE, TAX or VAT bills is one of the early warning signs why small business fail. This can worsen very fast into an uncontrollable level of debt. If you are failing to file for taxes for your business or have Tax issues, speak to the good guys at the Kenya Revenue Authority, and find out if they can offer you any payment arrangements that can help you pay.

2. Regular cash flow problems. Kenya’s unique business ethic is quite energetic. It’s because of this that you will hear many Kenyan business owners saying how much they have owed to them. Plenty or profits in the pipeline, but then again why small business fail is because they lack the working capital to keep the business operating until the payments are made.

They say in Kenya there is a lot of work but no one wants to pay for it, at least not immediately after you finish the work. The customer would rather pay part payment with a promise to pay the rest later not realizing its actually killing our small businesses.

When you are running a business in Kenya, make sure you have enough working capital to avoid cash flow disasters. Avoid collecting client debt too late or paying creditors too early to allow you make the most out of your working capital which will then help you grow your business.

3. Being busy, but not making extra money.

There is plenty of work in Kenya as long as you are ready to work for free or better still wait for the payment when it “rains”. You would rather walk on water if your business is too busy grinding but not making any money. This is a bad sign, part of the reasons for business failure that cannot be ignored. Find out what is going wrong before you can correct this. Ask yourself, are you spending more time dealing with customer problems as they show up rather than planning strategically to avoid them?

Take time to look at your business as a whole to find out what the main problem is. Once you have identified the problem then this is the opportune moment to fix it. Feeling there is a problem and not doing anything about it, is the same as burying your head in the sand and expecting your problems to go away.

Make a clear strategy with goals in place that will guide you monitor the progress in bettering your business going forward.

4. Customer complaints as part of the reasons for business failure

The increase in number of customer complaints and returns could mean that you are spending too much time chasing new business and forgetting existing customers. This is one of the business failure indicators that can’t be ignored adding on our list of top reasons for business failure in Kenya. We have business with a lot of customer complaints yet the business owners or staff never take these signs seriously until the day they are forced to close up shop.

New business is essential, but existing customers and clients are possibly even more important. Make sure you look after existing customers, as well as working on acquiring new ones.

5. Not investing in your business is why small business fail in Kenya.

Since finances are mostly tight for small businesses in Kenya, most fail to invest and instead choose to save which can sometimes be fatal. With time, failure to invest in new gear, for example, can lead to higher maintenance bills for your old stuff and result in reduced efficiency and loss of market share.

6. Constantly looking for business loans

If you’re constantly looking for a higher overdraft limit or larger business loan, or considering borrowing from friends to help run your business, you should immediately take a step back and ask yourself why?

Putting more money in your business is hardly the solution for business failure in Kenya. It’s could be something important that needs changing, so think about what it is.

As you work on your business, stay focused and remember when you identify one of the reasons for business failure do not panic. It doesn’t automatically mean your business is destined to fail the red flags mean you should take urgent action to save your business from failure. The sooner you solve the problems of why small business fail in Kenya, the more chance you will have of growing your business, serving Kenyans and changing lives for the better.

Barclays loans Timiza now available instantly via mobile phone in Kenya.

Barclays Bank of Kenya (BBK) on Friday launched a virtual banking product that will enable customers’ access Barclays loans Timiza and allow payment of utility bills using their mobile phones.

The virtual product called ‘Timiza’ will operate as a mobile virtual account giving both its customers and non-customers an opportunity to borrow 30-days loans at an interest rate of 6.17 per cent.

BBK Managing Director Jeremy Awori said “All studies show that more people want to do their banking on phone. We want to be as relevant as possible to the needs of customers and this is demonstrated in this digital product that offers flexibility to customers,”

Mr Awori additional said that branch transactions could reduce to as low as 10 per cent from the current 35 per cent of entire transactions as more customers seek faster, efficient and consistent digital products.

Customers will access instant Barclays Timiza loans of up to Sh150,000 depending on their individual credit score even as Awori hinted at increasing this as uptake rises. The entry of Barclays into this space heats up competition for Commercial Bank of Africa’s Mshwari product.

Partnering with Safaricom opens up Barclays loans Timiza to over 29 million registered users of Safaricom line to boost revenue for Barclays bank while offering digital solution to customers.

“About 50 to 60 per cent of people across age groups prefer to do their transactions on their phone or a combination as social pressures make it hard for people to visit branches,” said Awori.

Through Barclays loans Timiza, it will also be possible to deposit funds from Mpesa to your Barclays Timiza loans account, pay utility bills, send and receive money directly to other Timiza users and also purchase airtime. The app also comes embedded with a taxi hailing option in partnership with LittleCab.

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

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

See: How to apply Fuliza Mpesa Loan

Saida Loan App offers Kenyans access to fast and convenient loans to their Mpesa account. This can come in handy especially during emergencies, or when one needs to pay their bills and even as a means to grow your business.

Unlike conventional lending, Saida Loan app does not require any paper work or several meetings before you secure your loan. The days for vetting at the bank just to secure a loan are long gone. To get a Saida loan, you just need to download the Saida loan app.

BORROW UPTO KSH 25,000 USING SAIDA LOAN APP

If it’s your first time getting a loan with Saida, the initial offer amount will be on the lower amount and increase as you pay back on time and take on more loan. With a good Saida account you can get up to Ksh 25,000 loan through the Saida loan app.

Saida builds your credit score (decides on the loan amount to offer you) from data collected from your phone usage of SMS / Calls / Internet, your Mpesa transactions and your social connections especially your Facebook page.

HOW TO APPLY FOR A SAIDA LOAN

1. Create a Saida account using the Saida loan app and answer a couple of questions for them to build your profile.
2. Using your phone data, Saida checks history details of how you have been using your phone to make calls, sms, data and your MPesa usage history. This will enable Saida calculate the amount of money they can offer you as a loan.
3. Once you complete the application and hoping you are suitable for a loan Saida will update you within an hour and send the loan amount offered to your MPesa account instantly with details of the repayment terms. Unfortunately, if you cannot be offered the loan Saida will explain the reasons as to why they cannot give you the loan.

Saida interest rates on their loans can be as low as 7.5%. The interest charged is personalised per person, meaning every single customer gets a different interest rate.

HOW DO I REPAY SAIDA LOAN?

It is always good practice to pay your loan on time, this helps in building a healthy credit score for yourself. Repaying the Saida loan on time also helps you get bigger loan amounts, it also saves you the penalty payments you may have to make for late payments.

Repaying Saida loan is pretty easy, payment is done through their Safaricom Paybill number

SAIDA PAYBILL #854400

Note: Saida Paybill number 854400 is registered as Suave Business Solutions

Using your mobile phone these are the steps you would follow to pay for your Saida loan.

1. Go to your Mpesa Icon on your phone
2. Select Lipa na Mpesa
3. Select Pay bill
4. Type Saida Paybill Number 854400
5. Select Account number
6. Type your phone number as your Account Number
7. Type Amount (here enter the loan amount you want to pay)
8. Press OK to complete the Saida loan payment

PAY YOUR SAIDA LOAN IN GOOD TIME

Taking a loan these days can be very easy, but things can turn ugly very quick when you fail to make your loan repayments.

It’s always wise to call or get in touch with the lender early enough when you encounter difficulties when it’s time to pay up. Saida loan can give you 3 months to pay, and better still they can work with you to schedule a repayment plan that will work for you.

Should you ignore the sensible thing of contacting them to make this payment plan and stick to paying as agreed will only lead to the most stressful situation of being chased by collection companies. Worse still you will have your name forwarded to the Credit Bureau, which will end up giving you a bad credit history.

CONTACT SAIDA THROUGH SAIDA LOAN APP

Once you have installed the Saida loan app, you will be able to get help by contact Saida using the Saida Help menu. If you are not a Saida customer or don’t have the Saida app, you will need to download the app to be able to reach for help.

I hope this has been helpful in assisting you make the right decision should you be thinking of getting a Saida loan.

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

Check out the other Top 10 Loan Apps in Kenya, KCB Mpesa Loan, Branch Loan, MShwari, Timiza Loan, okolea loan, Okash loan, Tala Loan.

See: How to apply Fuliza Mpesa Loan