MShwari

MShwari is a paperless banking service offered through MPESA.

• Enable you open and operate an MShwari bank account through your mobile phone, via MPESA, without having to visit banks or fill out any forms.
• Provide you the ability to move money in and out of your MShwari savings account to your MPESA account at no charge.
• Give you an opportunity to save as little as KSh 1 and earn interest on your saving balance. This cash is moved into the savings account via M-PESA.
• Enable you to access an Mshwari loan of a minimum of KSh 100 any time and receive your loan instantly on your MPESA account.

This is a product for everyone who feels that banking should be hassle-free. No forms to fill in, no branches to visit. Just one click on your phone and you have a savings account!

Now you can get going, Lainisha maisha na MShwari.

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

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.

Fuliza Mpesa loan, rates, limit, app and how it works from Safaricom describes how the new overdraft service allows Safaricom Mpesa customers complete their Mpesa transactions when you have insufficient funds during payment.

Safaricom Fuliza overdraft facility was announced in late 2018 with it going live just a few days ago. In less than 1 week since its launch, Fuliza attracted more than 1 million users borrowing over 1 Billion Kenyan sillings according to Safaricom CEO Bob Collymore who spoke with Reuters.

Fuliza Mpesa Loan

Fuliza Mpesa loan is actually an overdraft service and not a loan as most of Kenyans think. This overdraft facility enables you to complete your MPESA transactions when you have insufficient funds. Within less than an a week Safaricom Mpesa customers have drawn more than KES 1.5 billion, which is quite impressive and scary at the same time.

How Fuliza Mpesa works

How Fuliza Mpesa works, is pretty straight forward.

Like a bank overdraft facility, when you are buying an item say at KES 4,000 and you only have KES 3,500 in your Mpesa account, depending on the Safaricom Fuliza Mpesa “loan” amount Safaricom has in place on your account (your overdraft facility), Fuliza will allow you to borrow the difference KES 500 for a maximum period of 30days.

When you make the payment of KES 4,000 with your Mpesa including the added Fuliza facility, your Mpesa balance will now show as KES – 500 (negative) since you are now overdrawn by KES 500.

It’s important to note: Once you take the Safaricom Fuliza Mpesa loan or rather overdraft facility you will first incur a 1% one off access fee, and an additional daily charge depending on the Fuliza Mpesa Rates as listed below until the day you fully pay your Fuliza overdraft.

If you borrow between.

KES 0 to 100 you will only pay a one-time fee of KES 2 and no daily charge.

Borrow between KES 101 to 500 and you pay KES 5 everyday till you pay off in full.

Borrow between KES 501 to 1,000 and you pay KES 10 everyday till you pay off in full.

Borrow between KES 1,001 to 1,500 and you pay KES 20 everyday till you pay off in full.

Borrow between KES 1,501 to 2,500 and you pay KES 25 everyday till you pay off in full.

Borrow between KES 2,501 to 70,000 and you pay KES 30 everyday till you pay off in full.

These are also the Fuliza Mpesa Rates Safaricom uses for the charges that they place on the Fuliza overdraft facility on offer.

Before taking the Safaricom Fuliza Mpesa “loan” – overdraft it is wise to read our 5 Questions to ask yourself before you take a Loan.

How to apply Fuliza loan

If you are looking on how to apply fuliza loan, you need to have a registered Mpesa account with an active Safaricom line.

To apply for Fuliza loan, dial *234# then select Fuliza Mpesa and opt in.

apply Fuliza loan – Dial *234# & opt in

That simple, every Mpesa registered line can be registered for a new Fuliza account, with its own Fuliza account limit. Fuliza limit is reviewed every 3 months depending on your Fuliza Mpesa usage.

You cannot withdraw funds from your Fuliza MPESA account.

Fuliza Mpesa Rates

Fuliza Mpesa Rates as shown below. 1% access fee and a maintenance fee will be charged on the outstanding balance as per the Fuliza rates table shown below. Additionally standard MPESA transaction charges also apply.

Fuliza Mpesa Rates

The current Fuliza Mpesa Rates shown here are promotional rates Safaricom is offering for the next 30 days. Check again as these Fuliza rates may change soon.

How to pay Fuliza Loan

Once you take the Fuliza loan, you really don’t have to worry so much about how to pay Fuliza Loan. Much of the repayment process happens automatically through your Mpesa account. When you receive funds or deposit cash to your Mpesa account, any outstanding Fuliza Mpesa balance will be automatically deducted from your Mpesa balance immediately funds hit your Mpesa after taking the Fuliza overdraft.

Fuliza Mpesa loan Penalties for late repayment

If you don’t pay your Fuliza Mpesa loan within the 30 days that you are given for your overdraft facility, Safaricom will stop access to your Fuliza Mpesa limit and you won’t be able to borrow until you fully repay your Fuliza balance in full.

Safaricom Fuliza Mpesa and M-Shwari are run by Safaricom in partnership with CBA. CBA also has a similar service called CBA Loop, through their Loop app.

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

Get instant Timiza loans on your phone, pay bills, transfer funds and purchase insurance with Timiza.

Timiza Features

• Get instant Timiza loans on your phone
• Deposit funds into your Timiza Account
• Pay for KPLC/ZUKU/DSTV/GOTV bills with your loan
• Purchase insurance
• Buy airtime

How to Apply for Timiza Loans: Simply Dial *848# or download it from Google PlayStore.

Barclays TIMIZA Loans

1. What are the requirements for a customer to have a Timiza Account?
   1. Be a registered Safaricom
   2. Be a registered Safaricom MPESA
   3. Have an active Safaricom MPESA account/line.
   4. Hold a Kenyan National Identification Document (ID) Kindly note that Kenyan passports are not
2. What are the services that Timiza offers?
   1. Transfer from MPesa to Timiza
   2. Transfer from Timiza to M-Pesa
   3. Make a loan request
   4. Repay loan
   5. Balance enquiry
   6. Mini statement
   7. Bill Payments
   8. Insurance
   9. Airtime Purchase
   10. Book a Cab – Little Cab (App only)
   11. Invite Contacts (App only)
   12. Fx Rates (App only)
3. Can I access Timiza through a Barclays Branch or through any electronic channel?
   1. Timiza is operated entirely from the mobile phone and cannot be accessed

through a Barclay’s branch. Timiza is a separate bank account and is NOT linked to your Barclays account or any other bank account.

Timiza Tariffs and Guides

1. What are the interest rates applicable on the Timiza Deposit Account?
   7. In line with the Banking (Amendment) Act 2016, all deposits on the loan will earn interest of 7.00% p.a being 70% of CBR. The deposit account will be available
2. What are the transactional charges for a deposit account?

**all fees are subject to a 10% government excise duty

3. What are the transactional charges for the loan product?

Timiza Loan Product

1. What are the features of the Loan?
   1. Quick access to credit
   2. Loan repayment period is 30 days
   3. One time facility fee of 5%
   4. Rollover fee of 5% if the customer does not pay within the 30 day
   5. Loan is disbursed to the customers account (not directly to Mpesa). Customer will access the funds by withdrawing from their loan account to Mpesa
2. Who is eligible for the loan?
3. In order to qualify for a loan all you need is to be an M-PESA subscriber for 6 months, transact on the app and actively use other Safaricom services such as voice, data and M-PESA.
4. How do I check how much I can borrow?
5. Upon activating the account, you will be issued with a loan limit from where you can borrow
6. Is there any interest charged on my loan?
7. Loans attract an interest charge of 1.17% with a facility fee of 5% charged on the cost of processing the

8. Can you request for a loan immediately you opt-in?
   1. Yes your loan limit will be displayed when you log in to the app
9. Can you have more than one loan at a time?
   1. You have to repay your outstanding loan first before you can borrow another loan.
10. Can you pay a loan on behalf of another person?
    1. You can send money to their loan account and they can pay the
11. If you have not paid your loan within 30 days, what will happen?
    1. Your loan repayment period will be extended for an additional 30 days and you will be charged an additional 5% facilitation fee on your outstanding loan
12. What happens if you pay in excess of the loan amount?
    1. The outstanding loan balance will be paid off and the extra amount will be moved to your Timiza
13. If you pay your loan before the due date, will you still be charged the loan facilitation fee of 5% on the loan amount?
    1. Yes, the 5% is a facilitation fee charged on the cost of processing the loan. Early repayment will increase your future loan limit
14. I cannot access my loan. What are some of the reasons for this?
    1. You have been listed with the Credit Reference
    2. You already have an existing account
    3. You have a low credit
15. How do I grow my loan limit?
    1. Increase activity on your Barclays Loan Account by moving money in and out of your
    2. Increase savings on your Barclays Loan
    3. Increase usage of MPESA

Timiza Insurance

1. What insurance products are available on your loan account
   1. We offer Personal Accident(100K) and Funeral Cover
2. What are the features of the insurance products
   1. The insurance products offered cover death and permanent total disability
3. What are the charges?
   1. Your policy will be covered at Kes 42 per month
4. How do I apply?
   1. Log in to to loan account by dialling *848#
   2. Pick the insurance option
   3. Accept the terms and Conditions
   4. Subscribe to the insurance option
5. How do I make premium payments?
   1. The premium payments will be deducted from the deposit in your Timiza It is important to ensure that there are funds in the account to cater for the premium.
   2. Can I make the premium payment from a my loan account? YES, If Premium amount is deposited in the virtual account
6. What are the charges?
   1. There are no additional charges to the insurance payment other than the Premium payment

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

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

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

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

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