Often times we find ourselves in the middle of a financial crisis which leads many of us to borrow money. In the past, you had to borrow money from family and friends or go through the long and tedious process of borrowing money from the bank.
With the introduction of mobile money lending apps in the country, borrowing money has never been this easy. Below are 10 of the best mobile lending apps in the country.
Tala was one of the first mobile loan apps in the country and it is still one of the best to date. All you need to do to borrow money from Tala is download the app from the play store and set up your account.
Once that is done, you can apply for a loan and if approved, it is disbursed to your MPESA instantly. The eligibility of the loan depends on your MPESA transaction history which is used to determine your creditworthiness. You can borrow a minimum of Ksh1000 and a maximum of Ksh30000.
The faster you repay your loan the higher your credit limit grows. The interest range between 11-15 percent with a repayment period of either 21 or 30 days.
M-Shwari is a product by NCBA bank in collaboration with Safaricom which allows its users to save and borrow money. It is actually the biggest mobile money lender in the country.
All you need to borrow money is an MPESA registered line that has been in use for at least six months. You can access the M-Shwari loan from the Mpesa menu or through MySafaricom/MPESA App and once approved the money is credited to your MPESA account instantly.
You can borrow a minimum of Ksh100 and a maximum of Ksh50000 with a facility fee of 7.5% and a repayment period of one month.
This is a product from Safaricom and Kenya Commercial Bank (KCB). You can access the loan from the MPESA menu, MySafaricom/Mpesa App or using the KCB bank app.
You have to be an active user of MPESA to be eligible for the loan. The money is deposited to your MPESA account upon approval.
The interest rate is 7.3% with a repayment period of one month. You can borrow anything between Ksh50 and Ksh50000.
Branch is another very well-established money lender in the country. You can easily download the app from the Google Play Store and follow the easy self-explanatory steps to register.
You can borrow from as little as Ksh.500 and as much as Ksh.70000. The interest rates are between 15%-34%. The repayment period is one month with four equal weekly instalments.
The loan is disbursed to your MPESA and it is approved within 24 hours after the request.
Zenka Loan App
Zenka has entered the money lending market recently and it is taking the industry by storm. It has gained popularity due to its fast loan disbursement and the flexible repayment period.
The first loan you take is also free of any interest fee. Customers can repay their loans in 61 days normally done in two equal instalments.
The interest rate is 11%. All you need to do is install the Zenka App from the play store, register and then apply for the loan. Once approved the money is sent to your MPESA account. You can borrow up to Ksh.20000.
With berry you can access low-cost loans with very flexible repayment plans. To access the loan, you need to install the Berry loan app from the play store and follow the easy registration process.
The interest rate is 9% -15% with a repayment period of 3 to 30 days. You can borrow from as low as Ksh500 and as much as Ksh50000.
First you need to download the ipesa app and register. They have an average interest rate of 12% with no service charge. The app accesses your messages and transaction history to determine your creditworthiness.
The minimum you can borrow is Ksh.500 with a maximum of Ksh.50000. The repayment period is 91 to 180 days therefore, enough time to settle your debt.
Kashway is another mobile lending app that has gained popularity in the country. You need to install the app and register in order to proceed to loan application.
The interest fee is 36% with no service charge and the money is sent to your MPESA on approval. The repayment period is between 91 and 180 days.
Timiza is an app from ABSA (formerly Barclays) that lends loans to both their account holders and non-account holders. Timiza charges an interest rate of 1.083% in addition to a facility charge of 5% which is quite low as compared to other lenders.
The app scans your mpesa transactions to determine your eligibility for the loan. You can borrow from as low as Ksh.50 and as much as Ksh.150000 depending on your limit.
After loan approval the money is deposited into your Timiza wallet and from there you can withdraw to your MPESA account. The repayment period is 30 days.
Okash is another mobile money lending app that you can download from the play store and register. It uses the data collected from your phone to determine your creditworthiness.
The minimum you can borrow is Ksh1500. The interest rate ranges from 14%-36% with a repayment period of 20 days.
In conclusion, the apps have made money borrowing easy therefore, personal responsibility is required to ensure that you borrow responsibly.
There are consequences of defaulting the loans such as being listed with the Credit Reference Bureau (CRB) and also the loans might accrue dramatic penalties.