where to get Emergency loans in Kenya

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Emergency loans in Kenya

In this post, I will show you where to get quick emergency loans in Kenya. I know there at times comes a time when we are in dire need of quick cash but with lower chances of getting it from other platforms like Banks, but you can find any.

Well, worry no more since Financial technology has come to save our lives. But to begin, let me help you explain what the meaning of emergency loans is.

Emergency loans are quick or instant money received in a short period meant to satisfy an immediate necessity. Way before the emerging of financial technology, there were regular banking systems where one would take many days or even weeks to get a loan.

Nevertheless, that seems to have ended with the introduction of several loan apps where you get money on the go.

Where to get emergency loans in Kenya

There are various apps where you can get quick money to in case of an important need.

1. Tala App

This is one of the very first loan apps to be established. It was previously known as Mkopo Rahisi. The loan app is available on all Android OS smartphones, and anyone can apply and get a quick instant loan.

To set up the Tala loan app go to google play store, download and then install the app

How to download Tala App

  • Visit Google Play Store with your Google account, this is for all Android smartphones
  • Download the Tala App and wait till it installs on your phone automatically.
  • Once installed, get set to start using Tala Loan App.
  • The app has a limit of up to Kshs 30,000
  • Loans are given through Mpesa

2. KCB M-Pesa

This is a quick mobile loan app for M-Pesa users. Consumers who use M-Pesa services can only obtain these services.

To get started, follow these Steps:

  • Go to your M-Pesa menu
  • Click on Loans & Savings
  • Select KCB M-PESA
  • Select the loan > Request Loan > Enter Amount
  • Enter your KCB M-PESA PIN the OK

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3. Branch

Just like Tala app, Branch is a financial credit service through an app and Mpesa. It gives the user the flexibility to obtain an instant loan anytime, anywhere.

The branch loan app is available for download on google play store

According to the apps user statistics, they have approximately 3 million users, more than 15 million mobile loans issued, and more than 300 million dollars disbursed.

To download Branch App Go to google play>Click on install to download the app.

Once the app is installed, fill in the details needed to start using Branch.

4. Mshwari

Mshwari by Safaricom is a product of Commercial Bank of Africa in partnership with Safaricom.

The product enables you to Save and borrow money via mobile phone as you earn interest as you saved.

For you to fit for a Mshwari loan, all you require is to be an M-PESA subscriber for six (6) months, save on M-Shwari and actively use some other Safaricom services such as voice calls, data, and M-PESA.

5. MCoop Cash

This is a quick loan app which enables co-operative bank of Kenya customers to obtain the bank services, including emergency loans in Kenya.

It gives access consumers account balances, transfer money from their MCO-op cash account to Mpesa, Airtel.

It also supports the bank costumers to buy airtime for their phones from m-coop cash account among other numerous services.

With MCOOP Cash App, you can easily apply for up to a maximum of Ksh200,000 shillings of 1.5 times your net salary.

6.Saccos

This is Savings and Credit Cooperative Organisations which are managed by a group of individuals with the same purpose. In most cases, they are formed by people who work together, Church members, family, or a community with a common goal.

Saccos are best when it comes to savings. They then use the savings to loan lend to their members.

The savings can also be used for different investments like purchasing of lands, houses, etc.

In Kenya today, we have some of the known Saccos including Harambee Sacco, Safaricom Sacco, Stima Sacco, Waumini Sacco, among others.

Nevertheless, Saccos have their advantages and disadvantages.

Advantages of Saccos

  • The more you save there, the more you get, particularly when you require an emergency loan.
  • The money you save in Saccos never gets lost once you leave the Sacco you given all your saved money.
  • Saccos also give members chances to own properties
  • Saccos enable members to use their dividends to pay back the loans
  • You earn dividends from your money.
  • You can likewise use your dividends to increase your shares.

Disadvantages of Saccos

Without many members, there is no Sacco
Due to their limited capital, they may be forced to employ unqualified professionals

7.Shylock

This is an individual quick money lender or Creditor and in most cases known to be outrageous, cruel with ridiculous, high-interest rates.

Being an individual money lender, there are advantages and also disadvantages to getting money from them.

Advantages

  • Loans are quick
  • You can get them at your own comfortable time.
  • Get value for your loan

Disadvantage

  • Very High-interest rates
  • There are no regulations put in place
  • Most of these money lenders operate illegally with no documentation
  • Loans are on the lender terms. The debtor is not given an opportunity to negotiate.

8. Banks

This is the institution where we, well, some of us keep and deposit our money. Banks have a higher reputation, particularly in most countries, including Kenya.

They carry out lending enterprises to both individuals and institutions.

For you to get a service eg, loans from the bank could be a loan or want to deposit, you are expected to open a bank account which you will use for all your transaction activities.

Banks have various types of loans including:

Salary advance loans – for any short notice or emergencies

fixed asset loans – for buying different assets where the asset itself is collateral

factoring loans – loans based on cash owed to your business by customers

hire purchase loans – for a long-term purchase of assets such as vehicles or machinery

Nevertheless, as much as we all run to the bank to borrow loans, we ought to understand some pros and cons of borrowing from these institutions

Advantages of banks

Banks gives you a very flexible way of paying your loan

The interest rate is not that high compared with other emergency loans lenders like apps

You can regularly secure your loan with whatever asset you may be your business premise, land, home or even business

Disadvantages

Consumers may sometimes not pay on time hence creating cashflow problems.

In some instances, you put valuable possession as security for the loan that is borrowed.

There may be a cost if you want to repay the loan before the end of the loan duration, particularly if the interest rate on loan is fixed.

While you are considering to take emergency loans in Kenya, it is necessary to learn about the current ones and lean their terms and conditions, from there you get to determine which one will favour you most. You can also check out our guide on Tala loans and leave us a comment below.

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