List Of Mobile Loan Apps In Kenya And Their Interest Rates 2021
What comes to your mind before downloading a mobile loan app to your Smartphone? I know you will, first of all, want to know the interest rates of the loan before downloading. In this article, you will be given detailed information about the best and reliable mobile loan apps in Kenya and their interest rates.
Why mobile loans? To begin with, these financing alternatives have lower interest rates, are easy to access, no security needed, and have flexible repayment terms when compared to conventional bank loans.
Due to this, many banks have not been left behind in rolling out their versions of mobile loan app. The downsides of digital lending apps are that they have a loan limit, are addictive, and failure to repay will get you blacklisted on Credit Reference Bureau (CRB).
Mobile Loan Apps In Kenya And Their Interest Rates
Which is the best online loan app? Below we provide a detailed review of the most popular and dependable mobile phone loans as well as their interest rate.
1. Mshwari By Safaricom
Mshwari, a product of Safaricom launched in November 2012, is the mother of all other mobile loan apps. It is because of its success that other companies decided to join in and share the benefits. Even though it one of the most accessible mobile loans, you need a registered Safaricom SIM card that has been in use for at least 6 months.
You can easily access your Mshwari account on your Mpesa menu; you do not need internet. The mobile loan has a minimum loan limit of Ksh 100 and a Ksh. 50,000 maximum loan limit to be repaid within 30 days. The processed loan is deposited to your Mpesa account balance.
To advance your loan limit, you need to borrow more, make prompt loan repayments as well save more on your savings account. Mshwari will charge a 7.5% facilitation fee for each loan for 30 days. This levy fee will be doubled up in the following month in the event of a default.
2. KCB Mpesa
KCB Mpesa is a product of collaboration between Kenya Commercial Bank (KCB) and Safaricom’s Mpesa that was introduced in March 2015. The money lending service is not available to everyone but only Safaricom clients.
KCB Mpesa loans have a minimum limit of Ksh 50, and a maximum of up to 1 million. After receiving a confirmation of the processing of the loan, the cash is deposited on the customer’s Mpesa account.
Recently, KCB Mpesa announced an increase in their interest rate on loans from 4.08% to 7.5%. This piece of news shocked millions of customers that were loyal to the platform for its competitive interest rates.
3. Tala
Which app gives instant loans? With a rating of 4.7 and over 360,00 reviews on the Play Store as of August 8th, 2019, Tala formerly known as Mkopo Rahisi is arguably one of the leading instant loan apps in Kenya today. Tala mobile lending app offers credit to its over 3 million clients in Kenya, Tanzania, Mexico, and the Philippines.
To obtain a loan from Tala, you need an internet connection and a mobile phone. The next step is to download the mobile loan app from Play Store. Once you download, the app will ask permission to access your data on your phone. This is because Tala scans your SMS folder for Mpesa transaction history as well as voice call patterns all in an attempt to build your credit score.
Obtain a minimum loan of Ksh 500 and a maximum limit of Ksh. 50,000 on the Tala app depending on your previous repayment behaviour. Loan applications on this digital lending app take 5 minutes after which the funds are sent directly to you Mpesa. Tala mobile loan charges a service fee of 7%-15% for 30 days or 5%-11% for 21 days.
4. Branch
The Branch app is another popular mobile lending app in Kenya with a rating of 4.6 with over 204,000 reviews on the Play Store. The Branch mobile app was founded in San Francisco and launched in Kenya in 2015. To acquire a loan with Branch, you must be a registered Mpesa user and have a functional Facebook account with a name matching the one on your National ID card.
Download the Branch loan app and fill in all the required information. Next, accept the app to access your data on the phone to calculate your loan limit depending on the history of your Mpesa transactions.
The minimum loan you can get on the Branch loan app is Ksh 250, and the maximum limit is Ksh 70,000. Your credit will be processed in less than 3 hours after which it will be deposited into your Mpesa. Branch loan interest rate in Kenya can be 10% or 27% depending on how you pay your weekly installments translating to a 1%-21% monthly rate.
5. Okoa Stima
Okoa Stima is the brainchild of Kenya Power, and it advances loans to its clients to help them pay for their electricity bills. One can take a minimum loan of Ksh 100 and a maximum of Ksh 2,000 which has to be repaid with an interest of 10% within one week.
6. Okash
Okash is among the most popular mobile lending apps in Kenya for persons between 20 years and 55 years. Okash has a 4.1 rating with over 51,573 reviews on Play Store.
When registering on the app, it will need your details such as birth date, educational level, monthly income, and marital status. Okash proves loans from as low as Ksh 500 and charges a fixed 14% interest rate. To get the maximum loan limit, you will have to optimize your details.
7. Timiza
Timiza is another digital lending app powered by Barclays Bank of Kenya. Even though the app is by Barclays Bank, it is open to anyone who needs a loan provided you have a good credit score with CRB. The app has a 4.1 rating with over 11, 100 reviews on the Play store.
You can also use the Timiza app for your saving needs as this will augment your chances for higher loan limits. The best part about the Timiza lending service is that it is open even to persons without smartphone devices. You can access Timiza services by dialing *848# on your handset. One can access loans of up to Ksh 150,000 on the lending service which you will receive on your Mpesa. Timiza loan interest rate in Kenya is 6.17% to be repaid within 30 days.
8. Haraka
Haraka is powered by Getbucks, a South African based service provider. The money lending app is available in Kenya, Zimbabwe, Uganda, Tanzania, and Swaziland.
One can get a minimum loan amount of Ksh 500 to a maximum limit of Ksh 1,000. All Haraka loans are subject to a 23.45% interest rate. Even with a high-interest rate in Kenya, the app still manages a good rating score of 4.1 with over 12,140 reviews on the Play Store.
Other Mobile Loan Apps In Kenya
- Utunzi Loan App – 12% fees and 12% APR
- Zenka – First loan is free, commission fee from 9%
- Berry loan app – Service fee from 8% to 15%
- Stawi loan app
- CBA Loop
- Stawika Loan App
- Saida
- Zidisha
- HF Whizz
Remember terms and conditions apply in accessing these financial services, and in as much as some claim to not have interest rates on loans, other fees apply.
Mobile loans applications have changed the lives of many. This is especially true for small scale entrepreneurs who can take loans to increase their stock. Which of the above-mentioned mobile loan apps have you used in the past? Share your experience with us in the comment section below.
What’s your take on this? We believe this article was helpful, if yes, don’t hesitate to share this information with your friends on Facebook, Twitter, WhatsApp, and other Social Platforms.