Top 5 Apps for Quick Loans without Collateral in Kenya

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The growth in the use of mobile banking services in Kenya has transformed the Kenyan credit industry. We now have very many applications from which you can borrow loans in Kenya. This has come as people are moving away from banks and other traditional credit facilities such as SACCOs for mobile loans. We cannot understate the importance of the role Safaricom’s M-Pesa has played in all of this as pioneers. Kenyans can now borrow hundreds of thousands of dollars in instant unsecured loans from the comfort of their phones.

While we appreciate this as growth in the credit industry, we are not oblivious to the predatory nature of some fraudulent loan applications. You should be wary of shady loan apps that have hidden fees and inflated interest rates. A huge leap forward in consumer protection is that an Act of Parliament has been passed that all digital lending platforms are now licensed and regulated by the Central Bank of Kenya. Below we list some of the applications to get fast unsecured loans in Kenya.

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Read also : What is Safaricom Fuliza? And how does it work ?


1. M-Shwari

It is a partnership between Safaricom’s M-PESA and the Commercial Bank of Africa (NCBA) which has been in existence since November 2012. Users are allowed to borrow between Ksh 100 and Ksh 50,000 at interest rates of 7 .5%. The repayment of the loan is 30 days and the loan is processed in 5 minutes. To qualify for larger loan limits, you must repay your loans on time.

Additionally, paying off your loan much sooner than necessary will also increase your chances of increasing the loan limit. Depositing savings into your Mshwari account will also boost your credit score. All you need to register is an active Safaricom M-Pesa line SIM card for at least 6 months.


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2. KCB M-Pesa

As the name suggests, it is a partnership between Safaricom’s M-Pesa and Kenya Commercial Bank which started in March 2015. You can borrow from Ksh 1,000 up to a maximum of Ksh 1,000 Kshs 000. The service charge for this loan amounts to a total of 8.64% per month. To be eligible, you must be registered and have been an active M-Pesa customer for at least 6 months. Similar to most of the facilities we will discuss today, the repayment period is 1 month. To increase your loan limit on KCB, M-Pesa is similar to MShwari, as well as most other platforms.


Also read: CBA Loop is a new way to bank for digital natives

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3. Absa Timiza

Absa Bank PLC’s Timiza loan app is one of the newest unsecured mobile loan facilities in Kenya. Since its creation in early 2018, the clientele has exceeded the 5 million mark. The unique feature of Timiza is that you don’t need to be an Absa customer to qualify. Anyone can download the app and apply for a loan.

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Timiza has authorized loan limits ranging from Ksh 50 to Ksh 150,000 with a repayment period of 30 days. The interest rate is 6%. You can also use the code Timiza USSD * 848 # to access the installation. To increase your limit, you know the drill, save with them by depositing through M-Pesa and repay loans on time.


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4. Branch

Branch began operations in Kenya in 2015 and has been active ever since. The parent company, Branch International Inc., is headquartered in San Francisco. With the Branch app, customers do not need to have a savings account with Branch to qualify for a loan. The main requirement is an active M-Pesa line with a good credit history.

The minimum amount you can borrow is Ksh 250 and the maximum loan you can qualify for is Ksh 150,000. Branch’s monthly interest rates vary between 1.7% and 17.6%, which depends on the risk profiles and credit history of the clients. There are also loan terms between 4 and 52 weeks where interest varies from 17% to 35%.


Read also : How to link your PayPal account to M-PESA


5. Tala

Tala is a global technology company with roots in India, Kenya, Tanzania and the Philippines that claims to create the most accessible financial services in the world. It is important to note that Tala was first launched as Mkopo Rahisi and later renamed Tala. Their credit limit starts from 2,000 Ksh up to a maximum of 30,000 Ksh with quite flexible interest rates between 4% and 14% depending on the desired repayment term. The repayment term varies up to 60 days. Your credit limit is linked to your M-Pesa transaction history.

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Honorable mentions

Some of the other established apps for getting quick no-collateral loans in Kenya include:

  • Zenka
  • Okash Loan App
  • Equity’s Eazzy Loan App
  • Mcoop cash From Cooperative Bank of Kenya
  • Berry Loan Application
  • Zidisha app
  • CreditHela loan app

Read also : Here’s why M-PESA is the king of mobile money in Kenya

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