Are you searching for fast unsecured loans in Kenya without needing guarantors? Look no further! In this comprehensive list, we’ve curated the top 10 hassle-free places where you can easily apply for unsecured loans.
Securing an unsecured loan in the modern digital era has become more convenient than ever. Gone are the days of complex paperwork and lengthy processes. With a mobile phone, you can access the funds you need without the hassle. Don’t miss out on this opportunity – discover the best places in Kenya to get your unsecured loan today!
However, there is only one disadvantage: the loans are limited. For instance, the minimum amount one could borrow ranges from Sh.100 to Sh.1,000,000. The main requirement for acquiring big unsecured loans is having a good past borrowing history.
This involves avoiding, at all costs, having your name forwarded to the Credit Reference Bureau (CRB) as it acts like the blocklist.
Where to Get Unsecured Loans in Kenya
The following are great places to access a loan without security in Kenya.
1. M-Pesa by Safaricom
One of the most significant developments for Kenyans in recent years was the introduction of M-Pesa by Safaricom in 2007.This mobile payment system has revolutionized how Kenyans access financial services, with over 30 million active users in Kenya alone.
Among the many benefits of M-Pesa are the various loan products available to users where one can access unsecured loans in Kenya. These include:
- KCB M-Pesa loans: Registered customers of M-Pesa can access loan services of KCB M-Pesa loans. You can deposit and withdraw through the services. You can also get a loan between Ksh.50 and Ksh. 1 million based on the loan limit you qualify for.
- Fuliza by Safaricom: This overdraft service allows M-PESA customers to complete their M-PESA transactions when they have insufficient funds in their M-PESA account.
- Mshwari: This savings and loan service enables M-PESA customers to save as little as Kshs. 1, and access credit from Kshs. 1,000.
These products provide a quick and easy way for Kenyans to access secured loans without the need for collateral or lengthy application processes. It’s no wonder that M-Pesa has become such an essential service for so many people in Kenya.
2. Traditional Mobile Loan Apps
The widespread use of mobile phones in Kenya has brought many advantages, including the ability to access loans quickly and easily. With traditional mobile loan apps, there’s no need to visit a lender in person – you can download an app and get a loan within minutes.
These traditional mobile loan apps focus on offering unsecured and quick loans to Kenyans.
Some of the most popular traditional loan apps include:
- Tala Loan: Tala is a mobile loan app that offers instant loans to Kenyans. The app uses data from your mobile device to determine your creditworthiness and loan limit. You can apply for a loan of up to Ksh 30,000, with repayment terms of up to 30 days.
- Branch Loan: Branch is another popular mobile loan app in Kenya that offers instant loans without required physical documentation. The app uses data science and advanced customer insights to determine your creditworthiness and loan limit. You can apply for a loan of up to Ksh 70,000 with flexible repayment terms.
- Zenka Loan: Zenka is a flexible personal loan platform that gives Kenyans more control over their finances. The app offers a simple registration and application process, and you can receive your loan straight to your M-Pesa account in as little as 5 minutes. Customers can apply for a first loan of a fixed term of 61 days, with a one-time interest fee of 9-30% (risk-based pricing).
- Okash Loan: Okash is another popular mobile loan app in Kenya, with over 1 million downloads on the Google Play Store. The app offers instant loans to qualifying users, with the money sent directly to their M-Pesa accounts. To apply for a loan from Okash, you must be between 20-55 years old, have a valid national ID or passport, be a registered Safaricom line holder, have M-Pesa active on your Android phone, and have a steady income.
All you need is a mobile phone, an M-Pesa account, and an ID number, and you can get a loan sent straight to your M-Pesa account in minutes.
3. Digital Banking Apps
In response to the rise of traditional mobile lending apps, many banks in Kenya have launched their mobile loan products. Initially, only a few banks offered digital banking apps that allowed customers to transact on their mobile devices. However, almost all regulated banks in Kenya offer unsecured loans through mobile phones.
This has made it easier for customers to access loans without spending weeks chasing loans in banking halls. The loans are instant; the only requirement is a good borrowing history and credit status. With digital banking apps, customers can apply for and receive loans quickly and easily from their mobile devices.
The best banking apps where one can get an unsecured loan in Kenya are:
- Timiza Loans from Absa
- HF Whizz Loan
- NCBA Loop
- Eazy loans from Equity
- KCB Mobi Loans
- PesaPap Wallet Loan
- MCo-op Cash Loans
One of the main advantages of mobile bank loans is their convenience. With mobile bank loans, customers can apply for and receive loans quickly and easily from their mobile devices. This eliminates the need to visit a bank branch in person and undergo a lengthy application process.
Mobile bank loans also often have less stringent requirements than traditional bank loans, making it easier for customers to qualify for a loan. Additionally, mobile bank loans often offer competitive interest rates and flexible repayment terms, making them an attractive option for many borrowers.
Unlike Traditional mobile loan apps, loans from banks are regulated by the CBK, so they will handle you well when you default.
4. Family and Friends
For many Africans and Kenyans, family members and friends have long been a reliable source of financial support. Many people turn to their family and friends for help when needing a loan. These loans are often offered with little or no interest, and repayment terms are usually flexible.
Borrowing from family and friends can quickly and easily access funds without collateral or a credit check.
However, it’s important to remember that borrowing from family and friends can also come with challenges, such as the potential for strained relationships if the loan is not repaid on time.
Chamas, or informal savings and investment groups, have been a popular source of financial support for many Kenyans since the 1970s. It is estimated that there are more than 300,000 Chamas in Kenya, controlling a total of KSh 300 billion (USD 3.0 billion) in assets. Some even estimate that 1 in every 3 Kenyans is a member of a Chama.
Chamas have become so successful in Kenya that many people turn to them for loans. Members can borrow from their Chama and receive money without collateral. The only requirement is membership and the payment of a small interest rate. This makes Chamas an attractive option for many Kenyans looking to access funds quickly and easily.
Are you a member of any Chama? Let us know in the comments below this article.
6. Savings and Credit Cooperative Organizations (SACCOs)
SACCOs are an integral part of Kenya’s financial system, providing affordable and accessible financial services to millions of people nationwide. SACCOs are owned and controlled by their members, both borrowers and depositors.
SACCOs offer their members a range of financial products and services, including savings accounts, loans, and investment opportunities. Because SACCOs are member-owned and operated, they often offer more favourable terms and interest rates than traditional banks. This makes them an attractive option for many Kenyans looking to save, invest, or borrow money.
According to the Sacco Societies Regulatory Authority (SASRA), Kenya has over 176 licensed deposit-taking SACCOs. Some of Kenya’s largest and most well-known SACCOs include Mwalimu SACCO, Stima SACCO, and Safaricom SACCO.
If you are a member of a SACCO, you will find some products do not require Guarantors or Security, and one can borrow within their savings.
7. Commercial Banks
Commercial banks in Kenya offer unsecured loans to their customers. These loans do not require collateral, meaning borrowers do not have to pledge any assets as security. Instead, the bank will evaluate the borrower’s creditworthiness, income, and financial history to determine their eligibility for a loan.
Unsecured loans from commercial banks can be convenient and flexible for borrowers to access funds quickly. Because these loans do not require collateral, the application process is often faster and less complicated than secured loans. Additionally, unsecured loans from commercial banks often come with competitive interest rates and flexible repayment terms.
To apply for an unsecured loan from a commercial bank in Kenya, borrowers can visit the bank’s website or branch office and fill out an application. The bank will review the borrower’s credit history, income, and financial information to determine their eligibility for a loan. If approved, the borrower will receive the loan funds directly into their bank account.
Many employers in Kenya offer employee loans as part of their benefits package. These loans are typically unsecured, meaning the employee does not have to provide any collateral to secure the loan. Instead, the employer will evaluate the employee’s job performance, income, and financial history to determine their eligibility for a loan.
Employer-provided loans can be convenient and flexible for employees to access funds quickly. Because these loans do not require collateral, the application process is often faster and less complicated than other loans. Additionally, employer-provided loans often come with competitive interest rates and flexible repayment terms.
Employees can contact their human resources department to apply for a loan from their employer to learn more about the application process and requirements. If approved, the employee will receive the loan funds directly into their bank account.
Some come to inform of an advance which will be deducted from the employee’s salary.
9. Development Institutions
Development financial institutions, such as the Kenya Industrial Estates (KIE) and the Youth Enterprise Development Fund (YEDF), offer unsecured loans to support specific sectors of the economy. These institutions aim to promote economic growth and development by financing businesses and entrepreneurs in targeted industries.
For example, the Kenya Industrial Estates (KIE) provides financing to small and medium-sized enterprises in the industrial sector to promote industrial development and job creation. On the other hand, the Youth Enterprise Development Fund (YEDF) provides financing to young entrepreneurs to help them start and grow their businesses.
Unsecured loans from development financial institutions can be a valuable source of funding for businesses and entrepreneurs in targeted industries. These loans often come with competitive interest rates and flexible repayment terms, making them an attractive option for borrowers. Additionally, development financial institutions may provide other support forms, such as business training and mentorship, to help borrowers succeed.
Unsecured Loans in Kenya Conclusion
In conclusion, unsecured loans are a popular and widely available form of financing in Kenya. These loans do not require collateral, making them a convenient and flexible option for borrowers who need to access funds quickly. Various institutions offer Unsecured loans, including commercial banks, development financial institutions, employers, and SACCOs.
Each institution has its own eligibility criteria and application process for unsecured loans. Borrowers can choose the institution that best meets their needs and apply for a loan. They will receive the loan funds directly into their bank account if approved.
Unsecured loans can be a valuable funding source for individuals and businesses in Kenya. They offer competitive interest rates and flexible repayment terms, making them an attractive option for many borrowers. However, it’s important to remember that unsecured loans are still loans, and borrowers should carefully evaluate their ability to repay them before applying.