Have you ever been in a situation where you were in dire need of a financial boost but nothing was forthcoming. Well, I have. The first thought that came to my mind was to borrow from friends and family which I find a tad disturbing (ego and all). The other option would be to go to a Shylock who will most certainly under value my collateral and charge an exorbitant amount of interest on the loan, that wouldn’t be wise either. At this point it would seem like all is lost, right? Wrong.
Due to the technological milestones that have taken place over the years, innovative minds have devised ways of creating platforms that provide unsecured loans with zero paper work or guarantors (Faulu Sacco) and you don’t even have to step into a bank.
Mshwari
I’m talking about Mobile Micro Loans. These are the likes of MShwari and KCB/Mpesa loans. Here with is a compilation of eight Mobile Micro Loan schemes from the most familiar to the least that you can use to get a bit of a boost in those tough times…
This is a paperless banking service offered through M-Pesa, it was conceptualized by Safaricom and Partners with CBA (Commercial Bank of Africa). It began operation in the year 2012 and has been active since.
To be able to access loans from Mshwari you have to be 18 years of age, have a registered and active Mpesa account for at least 6 months and have the updated Mpesa menu that facilitates Mshwari. The minimum loan limit is 100 shillings and the maximum loan limit is unknown. Repayment duration is 30 days and the interest is set at 7.5%. In case you default the 30 day extension and a further 7.5% facilitation fee will be charged on the outstanding loan balance.
KCB/Mpesa Loan.
It started in 2015, it is a savings account that allows you access instant loans of up to a million Kenyan shillings by dialing *844#
You are even able to borrow instantly without saving. Disbursement is to KCB M-PESA Account and the Loan limits are between Kshs.100 to KSh 500,000 and with an option to top up.
There is a flexible repayment program of 1 month at 6%, 3 months 5% per month and 6 months 4% per month. via KCB M-PESA Account, M-PESA, and Mobi/Branch/Mtaani. Partial payment option is also provided.
To qualify for loan and get a KCB M-PESA Account, you will need to: Be a registered Safaricom M-PESA customer. Have an active Safaricom M-PESA account. Have in your possesion any one of the following identification documents. Kenyan National ID, Kenyan Passport, Alien ID, Diplomatic ID (Registered on IPRS), Military ID
All frequent users of Safaricom services and existing KCB account holders will be allocated a loan limit upon opting into the KCB M-PESA Account. Please note that not all customers will qualify automatically for loans.
Tala (Formerly) Mkopo Rahisi
Tala began operation in 2014 as Mkopo Rahisi but Rebranded to Tala. To qualify for a loan on Tala you have to Download and Install the application known as Tala from Google Play Store and then link the App to your Facebook account.
There is a list of personal questions that you have to answer so as to qualify for the loan. The minimum Loan offered is 500 and the maximum is 50,000. Repayment is 3 equal weekly installments at 15% interest. The loan will be submitted to your Mpesa account and repayment will be via Mpesa to 851900 as the Paybill number.
Branch
Branch is a San Francisco and Nairobi based company that was Founded in 2015. Its primary objective is, by using technology deliver financial services to emerging markets at a reduced cost. The first product that they chose to begin with is providing a short term credit facility to their customers.
To be legible for this service you have to be a registered Mpesa user, you must posses a Facebook account that bears the same name as your legal documents. You will need to download and install the Branch app from Google Play Store. Link the app to your Facebook account. Fill in the required details. Mpesa number, National ID etc. You will also have to verify your account by clicking on the link that will be sent to your phone via SMS.
The minimum loan limit is 1000 shilling and the maximum is still unknown. Disbursement and repayment mode is via Mpesa on 3 weekly installments. The interest will be determined by your repayment, and ultimately increase or decrease your credit score/ worthiness.
Saida.
This is another mobile based money lending service that offers loans to customers at an interest rates that are tailored for the customer. To be legible for this service you have to be an active M-pesa user. You have to make calls receive and use data services daily. You also have to Download and Install the Saida App from Google PLay Store. Fill the required information to request for an invitation. The Invitation could take 3 to 7 days.
The least amount that can be borrowed is 600 shillings and the maximum limit is 25,000 shillings.
Loan repayment is via M-Pesa on paybill number 854400
Defaulting of payment might lead to you being handed over to a collection company or even being listed on the CRB as a defaulter.
Pesa Na Pesa
This is another mobile phone based borrowing and lending product developed by AVL Capital ltd that offers emergency loans to persons that need short term emergency financing. This facility is payable within 7 days for amounts up to Kes. 5,000.
The interest rates are at 10% but early repayments will attract no charges.
Disbursement of funds is to a customer’s M-Pesa account and repayments are to AVL CAPITAL on Paybill Number 990390 and the account number as the borrowing phone number. To avoid delays in updating customer details pay using the borrowing phone number.
To register dial *415*33# and follow the system prompts by filling your details.
An automatic limit will be given to you.
Kopa Chapaa.
This is a product of Airtel Ltd that began operation in 2012 and partners with Faulu Kenya. To be legible for this service you have to be a registered and active Airtel Money user. The loan limits are 500 shillings minimum and 10000 maximum. To apply for Kopa Chapaa, you dial *305*2# and follow the prompt. Repayment is via Airtel money. Loan interest rates vary with the amount.
Pesa Pata
This is another way to not only borrow money but to also lend money. It is called peer-to-peer lending. It allows lenders to interact with creditworthy personal loan borrowers, so both receive a much better deal. Peer to Peer lending (P2P) offers both borrowers and lenders significant efficiencies over the traditional banking model. This is done by cutting out the large financial institution in the middle, lenders receive great returns and borrowers receive low interest and flexible loans.
To be legible for this service as both a lender/ borrower you dial *269# Follow the easy prompts and become a member. There are minimal charges for both the lender and borrower. Follow the prompts and complete the process but if you experience any difficulty in any stage of this process please visit Pesapata.com
Getting instant loans in Kenya has been eased greatly by the platforms listed above and many more not mentioned. You only need to have a phone and mostly an active M-Pesa account to access funds and avoid the stress of having to borrow from friends or Shylocks.
N/B The loan platforms on this post have online presence. Please visit their sites for more and/or updated information.