Loans come with several benefits; for instance, a loan can fund your business project or investment. You can acquire an asset that would have been impossible to get if you did not take out the loan. To most people, loans became our salvation when we were short on cash, be it for food, rent, or other expenses.
After talking to a financial expert, we discovered that this motive behind getting into credit leads to the debt cycle. When we take loans to cater for daily/monthly expenditure, we end up with a ‘habit’ that lands us in a debt cycle and inevitably affects our credit rating.
The main rule of life is to avoid debt as much as possible. This approach will help you save more because you don’t have to deal with inflated interests. Whatsmore, you’ll have less to worry about plus the freedom that comes with being debt-free.
One of my favourite quotes says, “Quick borrow, slow pay.” It is fast to get a loan these days with all the apps out there. But as a rule of thumb, remember to be responsible over how much loan you take. Avoid taking a loan of an amount that you’ll most likely struggle to pay back.
Again! When it comes to alcohol, we say, “drink responsibly.” When it comes to loans, we say “take them responsibly as well.”
|Utunzi Loan App|
|Timiza Loan app|
|Tala Loan App|
|KCB Mpesa Loan|
|Zenka Loan App|
Best Loan Apps That Okoa Kenyans From the Economy
After conducting thorough research and consulting several people, we discovered that these 10 apps are the best loan apps in Kenya.
- Utunzi Loan App
The Utunzi loan app gives low-interest loans that you can access from anywhere through mpesa. Similar to most of its competitors, no paperwork is required. All you have to do is download the app for free on Google Play. Next, you sign up, fill in a short-questionnaire and start using the app.
You can learn more about the Utunzi loan application process here.
The Utunzi application process requires you to fill out a short-questionnaire in the app. You’re encouraged to answer the questions truthfully, and whatever information you give will be used to determine your creditworthiness.
Similar to most apps in Kenya, factors such as education level, history of paying other loans, and unemployment level determine whether the loan is approved or denied.
Overall, Utunzi stands out because it’s simple to use. On the downside, you have to pay a 12% fee and an interest rate of up to 12%. The interest rate is up to 12% and you have to pay an account management fee of KES 400.
- Timiza Loan app
Timiza loan app was launched by Barclays Bank Kenya. This app stands out as among the best because it allows its users to do a variety of things, like pay bills, buy credit, do your banking, and get instant loans. Whatsmore, you can save earn returns when you open a Zidisha savings account.
There are two ways to get the Timiza Loan app. You can download the app for free from the Google play store. Alternatively, you can dial *848# by using your Safaricom line. You can learn more about the application process from this link.
Some of the requirements for getting your loan approved is:-
-You must have an active Mpesa account. You must be an active Mpesa subscriber for at least 6 months before using the app.
The amount of loan that you get heavily relies on your Mpesa history. The maximum you can borrow from the app is KES 1,000,000 and the lowest amount that you can get is KES 50. A key feature with Timiza is that they have one of the lowest interest rates in the market, which is 5%. The duration for paying back the loan is 30 days.
Aside from that, the app is simple to use and getting a loan is fast.
Tala is an app that has received high praise from Kenyans. Like its counterparts, the app looks at your personal credit history to determine whether you should get the loan or not. Tala users don’t have to offer a lot of details to use the app. All you need is a valid national ID and a smartphone.
Tala loan amounts range from KES 500 to 30,000. Users get an interest rate of 5% to 15% depending on the repayment duration. You can learn more about their services here.
Similar to Tala, Branch is one of the best instant loan apps in Kenya. The app gives loans of up to KES 70,000. The Branch loan application process is fast and easy. Once you download the app and sign up, your loans get approved in less than 24 hours. Some of the benefits of Branch is that there are no rollover fees when you delay in repaying the loan. On the downside, the interest rates are high.
It’s important to note that Branch is owned by a U.S. based company. When one delays with payment, you get an alert message with the name “ACORNS.” This name is associated with one of America’s leading investments apps. Yet this is where it gets painful. It is sad to see these businesses enter the market with the aim of issuing loans to a society that’s struggling with poverty and poor wages. Loans are not a path to riches but a sure path to financial struggles. Yet in their homeland, the company offers investment opportunities that help even the simplest American work on towards building wealth.
We long for the day that these companies will offer us the same opportunities that they give their own.
- KCB Mpesa Loan
KCB Mpesa is a product of KCB Commercial bank, in partnership with Safaricom. You don’t have to download the app as you can access it from the mpesa menu list. One of the benefits of KCB Mpesa loan is that it allows you to take another loan even if you have an existing loan. You can do this for as long as you have not exceeded your loan limit.
KCB Mpesa loan allows you to borrow as low as KES 100 and as high as KES 50,000. The interest rates are low, 7.35% depending on the amount of cash. However, the repayement period is one month.
Kopa kash is another online lending platform that offers fast loans depending on your credit score. The app charges a service fee depending on the product you choose. E.g. school fees, emergencies, business. The loan ranges from KES 1000 to KES 50,000, and the repayement period is 90 to 120 days. A key feature about KopaKash is that its fast and easy to use. On the downside, it can take upto 48 hours for your loan to be approved, and this can be frustrating if the loan is for emergencies. Furthermore, users have to be a fee of KES 100 known as a commitment fee which is annoying, considering that there are apps on the market that don’t ask for fees.
Okash loan app offers instant loans of up to KES70,000. So far the app enjoys positive reviews from its users who state that the app is simple to use. All you have to do is download the app, sign up with your personal phone number, key in your personal information, and request for a loan. The app quickly checks your credit rankings to determine whether you are loan worthy.
One of the benefits of Okash is that it takes at least 15 seconds for you to get the loan. The lending decisions are made almost instantly and deliver you cash via Mpesa.
However, there are concerns that the app shames people when they default on a loan. That said, be careful with Okash.
iPesa loan app is another good and reliable app that you can use to get instant cash. The app offers loans from as low as KES 500 to as high as KES50,000. However, their interest rate is quite high as it stands at 12%, and you have to repay the loan after 14 days. You can find details on how to apply for an iPesa loan here.
iPesa is one of the latest apps in the market that’s receiving alot of positive reviews.
- Zenka Loan App
Zenka Loan app stands out because of its excellent customer service. The app is fast, efficient, and easy to use and you can get loans from KES 500 to KES 30,000. The simplest way to borrow money from Zenka is to download the app. Alternatively, you can dial *841#. The second alternative works for those who don’t have a smartphone.
Similar to other apps, Zenka does a quick review of your credit rating using complex algorithms. Once that’s done you can get a loan within 5 minutes.
Zenka charges a on-time processing fee of 9-30% of the principal amount. Also, there’s no minimum payment period for repayment and customers may make payments towards their principal at any time following disbursement.
So far, Zenka stands out from all the rest, thanks to their awesome customer service.
- Zash Loan
Zash is another popular loan app that has positively hit the Kenyan market. So far, the app has positive reviews with users praising it for its simple registration process. On the downside, the interest rate for the loans is among the highest in the land (20%). Also, one you delay with payment, the app lowers the amount that you qualify for in their platform.
Their loan amount ranges from KES 500 to KES 50,000.
These are the ten best apps that we could find online. No doubt, each of these apps has their pros and cons. Yet, so far they have been performing well in the market. Overall, discipline is the secret to success with these apps. If you can pay your loan in time, then you will not have challenges and you can enjoy regular access to loans.
Be sure to check out our next article: 5 Major Ways Kenyans can get out of CRB and Debt.