For numerous individuals, borrowing from creditors has become the ultimate solution.
Unfortunately, banks have been widely known for imposing exorbitant interest rates.
However, the silver lining is that there is now a diverse range of loan providers in Kenya who offer instant online loans, providing a lifeline to those in need and helping to resolve financial challenges.
Best online loans in Kenya via Mpesa
We will jump into the most renowned online loan providers in Kenya.
1. Shika loan App
Shika loan Application belongs to Alternative Circle which is a credit company in Kenya. Credit companies are mushrooming at a very high rate in Kenya. However, only a few are able to meet the need of the borrowers.
As you are about to find out, Shika is one of these heavens sent instant loan creditors. Owing to the economic hardships and the responsibilities bestowed on Kenyans, instant loans have found popularity among people.
What you should know about Shika Online Loan App
- This app is available for Android mobile users in Kenya.
- The loan limit is between Ksh 500 and Ksh 20000
- Only Safaricom mobile subscribers can benefit from this service presently.
- Upon approval, the loan is sent to you via M-Pesa in a span of 3 minutes.
- A 15% facilitation fee is charged with the loan amount.
- The loan should be repaid in full in a period not exceeding one month (30 days)
- In Case of late payment, a 10% rollover fee is charged on the owed amount
- A rollover exceeding 60 days will attract a CRB listing
See more on how to borrow from Shika Loan App in Kenya
Tala was among the first instant loan apps in Kenya launched as Mkopo Rahisi in 2014 and later rebranded to Tala. This Loan App requires one to have a smartphone and a good Mpesa Track record in order to access their loans.
How does Tala Loan App work?
- To determine your loan limit, The App depends on your loan repayment behaviour and on reading your Mpesa transaction activities. You shouldn’t delete your Mpesa messages.
- Download & install Tala App from Google Play store
- Link app to your Facebook account
- Answer a few personal questions
The loan is disbursed through your Mpesa account and the minimum loan limit is Ksh 500 with a maximum of Ksh 50,000 at an interest rate of 15%.
The loan is to be paid back in weekly instalments for a period of 3 weeks through Mpesa PayBill number 851900. Loan defaulters are restricted from qualifying for future loans.
See more on how to borrow from Tala Loan App
Branch International Inc is a San Fransico based company with a branch in Nairobi. It was launched in Kenya in 2015 and has been active ever since.
To qualify for a loan using this app, you need to be a registered Mpesa user and have a genuine active Facebook account with usernames matching those in your National ID card.
- Download and install Branch app from Google Play store
- link the app to your Facebook account
- provide the required details like Phone number
- National ID number
- Verify your Phone number by clicking on the link sent to your phone via SMS
The minimum Loan limit is Ksh 1000, and the maximum loan limit is currently unknown. The loan is disbursed via Mpesa and the interest rate is dependent on the repayment of the weekly instalments.
See more on how to borrow from Branch Loan App
4. Saida Loan App
Saida is also using a mobile app to grant loans just like Tala and branch. To be eligible for a Saida Loan, your Mpesa/Airtel Money accounts must be very active. The app reads and monitors your transaction and calls activities to determine if you can be able to repay their loan.
To access Saida, download the app from the Play store. Fill in your mobile number and wait for an invitation to access loans, the invitation could take up to 3 -7 days for approval. Saida offers a Minimum loan limit of Ksh 600 with a maximum of Ksh 25,000 at an interest rate of 10%.
This loan is disbursed through Mpesa and is repaid in the same way via Mpesa Paybill number 854400 for 30 Days. Defaulters are handed over to CRB to be blacklisted.
See more on how to borrow from Saida Loan App
5. OKOA Loan App
Okoa Stima was founded by Kenya Power in partnership with Safaricom in 2015 and is currently active. It comes in handy when you don’t have enough fund to pay for electricity.
The minimum loan amount is Ksh 100 and a maximum of Ksh 2000 at an interest rate of 10%. The loan is disbursed and repaid through Mpesa and has a duration of 7 Days.
See how to Okoa Stima
6. Zidisha Loans
Zidisha an international firm which was found in 2008 and has been active ever since. It is a peer to peer lending platform which basically means that it is a platform for lending money to individual or business organizations via an online platform that matches creditors directly to borrowers.
Zidisha is a non-profit organization which connects borrowers from Kenya and across Africa, with creditors from North America and Europe. To qualify for a loan with Zidisha, you need to;
- Be employed or have an active business
- Have good conduct and reputation
- Have a good credit score record
- One should also have a good online presence to be able to respond to Zidisha queries and products on their website
- You need also to hold a Facebook account with good social connections
- Reside in a country where Zidisha currently operates.
- Be able and committed to posting frequent updates and reviews regarding the use of the loan and progress of the business on the Zidisha website.
7. Timiza App by Barclays
One of the recently launched Loan Apps in Kenya is a wonderful loan product from Barclays Kenya. The best thing about Timiza is that it is open to anybody with a mobile phone. This is good since you don’t need a Barclays account to use the Timiza App.
It is also good for saving and you increase your chances of getting a loan by depositing money into the App through M-Pesa.
If you are not using a Smartphone, you still can access the loan services from Timiza by dialling *848# on your mobile phone.
How to borrow from Timiza App by Barclays
8. Stawika Loan App
Stawika loan App is a revolutionary platform that offers mobile loans in Kenya. This article will tell you more about the App and how you can secure a loan with Stawika App.
Stawika loan App is one of the mobile lending apps which is versatile compared to other apps. This application gives you various options that other mobile loan apps won’t offer you.
This app from Stawika Capital Limited has been giving small loans and credit support to Kenyans for a while now. Stawika Loans are sent within minutes to the borrower.
One thing you can’t help but admire about Stawika Loan App is that their registration process is very simple and free, unlike some apps that will require you to pay some money.
The last I checked, Stawika had a customer base of more than 170,000 people which means that people are quite pleased by the lending app.
What’s more, Stawika Loan App has played a significant role in the development of SMEs by dispatching specific credits such as Capital lending and invoice factoring.
How to Borrow from Stawika Loan App
10. PesaZone Loan App
NO Paperwork, NO Questions Asked! You can borrow from KES 250 to KES 15,000/= from the App and receive the cash via M-Pesa from anywhere in Kenya without any guarantors, security or office visits!
To start with, PesaZone is the most simplified peer to peer lending application in Kenya. Peer to peer lending is a form of borrowing where one person with money lends money to someone else who needs money.
But there has to be a referee who oversees the transactions and makes sure that the debtor pays back the money to the lender.
So I have 500Ksh and you need 500Ksh, let’s meet at PesaZone so I can lend you the money and in case you refuse to pay back, PesaZone already has your details, so they can list you on CRB or follow up and penalize you. I hope you got what I was trying to explain there.
How to borrow from PesaZone Loan App
How to Increase Your Loan Limit
We have been receiving numerous emails from our readers, talking about Mobile Loan Apps in Kenya and how or what can be done to increase the loan limit. One subscriber called Jane wrote to me asking me how she can advance her M-shwari loan limit from Ksh 200 to a higher amount.
Well after doing my research and contacting the loan providers, I was able to learn a few tactics which are actually true and confirmed by the loanees. Mobile loans are usually given with no security at all. Some rely on your CRB Status.
As you know, most of the loan providers are afraid of losing their money and that is why they ask for some form of security such as a payslip or log book before advancing a loan.
However, with loan App’s NO security is required at all. All they need is some valid information from you to confirm that you are indeed human and not a ghost. So how do they know what to give you?
Loan apps in Kenya depend on the information you give them like full name and National ID number and data that collected from your sim cards, such as Mpesa transactions and your call history to determine the amount of loan you qualify for.
This information helps them to determine your creditworthiness. So if you are used to topping up your Airtime with Ksh 20 twice a week, it’s high time you change your habit by increasing your top up amount and frequency.
Mobile loan App is usually an automated program which can handle a large number of requests at a given time. The App is programmed so as to look at given figures before advancing a loan to a clientele. So in-case you do not qualify for a mobile loan, do not take it personally… It’s just the system.
Here is how you Increase your loan limit
Here, I have listed options and steps you can take to qualify for a higher loan limit.
1. Download and keep your Loan app in advance
As human beings, you never know when you run out of cash. And as mentioned above Loan app read information from your phone from time to time.
2. Use mobile payments frequently
Many mobile carriers offer a wide range of mobile payment services e.g Mpesa, Lipa Na Mpesa etc
Ensure you frequently use these services whether buying airtime credit or paying for goods or services. Doing this enables you to leave behind transaction trails in the system database that proves that you actually use that particular service.
Do not delete mobile payment SMS messages
Whenever you receive or send money via any mobile payment service (Mpesa, Airtel Money, Orange Money etc) do NOT delete the messages.
This goes for when you purchase airtime or pay for goods and services via these platforms.
Most of the loan apps actually scan your SMS messages for proof that you indeed transact via this channel and hence sees your ability in repaying the loan.
Activate your social media status
In this digital age, it would be almost criminal to lack any online footprint of your existence. Being on social networks e.g Facebook and Twitter pose a great advantage because most loan apps require one to link the app to Facebook in order to make one eligible for a loan via the app.
Invest in a reliable smartphone device
It is great to keep up with the ever-changing trends of technology. However, do not misinterpret us. We are not telling you to buy the most expensive and latest phone or tablet in order to stay technologically relevant.
Try and invest in a low budget smartphone preferably android phone to be on the safe side because most loan apps require a compatible smartphone as a pre-requisite to enable you to access a loan via their app.
Earlier loan repayments
Like we said earlier, mobile loan provider services are mostly run by automated systems. The nicer the trail you leave in their database, the nicer they will ‘treat’ you.
Request for a loan occasionally
Requesting a loan and making early repayments increases your digital footprint in their system, thereby increasing your creditworthiness thus provides you access to a much larger loan amount in the future.
Although this may not be applicable to loan apps, it definitely applies to loans offered directly by carrier operators e.g Mshwari. As they usually say, “The more you save, the more your chances of increasing your loan amount.”