M-Pesa by Safaricom is a branchless mobile-based banking service that was started in 2007 by Vodafone, the parent organisation, on behalf of Vodacom and Safaricom. The founders of M-Pesa are Nick Hughes and Susie Lonie. Since then, M-Pesa services have expanded beyond borders to other countries such as India, Romania, South Africa, Afghanistan, and Albania. The service offers a broad range of services which covers money withdrawal and deposit, transfer money to other mobile phone users or bank accounts, payment of bills (Lipa Na M-Pesa), buying of airtime, payment delivery as well as microcredit provision popularly known as M-Shwari which provides instant loans via Mpesa.
M-Pesa consumers can deposit and withdraw money from any M-Pesa agent or banks in some instances. Users of the service are imposed a small fee for withdrawing or sending cash through the platform. Presently, M-Pesa serves approximately thirty million customers and approximately 287,400 agents across ten countries.
There are various occasions when someone is in desperate need of cash to sort out an important matter. In most cases, the fastest way of sourcing for money is from family and friends. Nonetheless, they might not always be in a position to come to your aid. You might also think of getting a bank loan, but it takes time to go through. The quickest and easiest answer on a rainy day is to use mobile loan services with minimal bother. The M-Pesa platform enables lenders to give borrowers immediate instant loans via M-Pesa. Here are some of the most well-known instant Mpesa loans used in Kenya.
M-Shwari is a micro-savings program started in 2012, a collaboration of Safaricom and CBA bank that is currently taking the country by storm. M-Shwari is the most in-common platform that issues online loans in Kenya via MPesa. M-Shwari also enables subscribers to store their money safely for an unexpected event in the future. The M-Shwari loan account allows people to borrow cash in times of need at a one-time convenience fee of 7.5% levied per loan offered. To qualify for an M-Shwari quick loan, you need to have been an active Safaricom M-PESA subscriber for a minimum of six (6) months, actively use other Safaricom services and save on M-Shwari. Additionally, to be eligible for a Mshwari loan you need to be over eighteen years of age.
You can swiftly enquire how much you can obtain by going to M-Shwari loans and savings then check the loan limit. The minimum M-Shwari loan amount that can be accessed is one hundred Kenyan shillings, but you can borrow up to Ksh. 50,000. The repayment period is usually thirty days. The loans are disbursed via M-Pesa but, the payment of the M-Pesa loan can be done either through M-Pesa or deducted directly from your M-Shwari account. If you delay or default on payment, you will be charged a fee on the outstanding loan surplus/balance depending on how much cash you borrowed.
Tala, before rebranding known as M-Kopo Rahisi has in the past been giving its subscribers loans up to Ksh 10,000. Presently, Tala has upgraded the loan amount to (50K) fifty thousand Kenyan shillings. To obtain a Tala loan, you have to download their Android app on your phone, create an account then respond to some questions that will assist in determining whether you qualify for the loan or not. Tala handles their risk analysis by checking your transaction history on M-Pesa.
The moment you get your Tala loan, you can opt to repay it in either in two instalments within a month or pay only once towards the end of the month. If the loan is approved, it will be sent to you via M-Pesa. The interest rate for the Tala loan repayment ranges between 11% and 15% depending on the amount of loan requested.
3. KCB M-Pesa
KCB M-Pesa by KCB Bank is a saving and loans account brought in as a result of a partnership between the Kenya Commercial Bank and Safaricom. It is a common mobile-based bank account platform that enables customers to borrow microloans between fifty and one million Kenyan shillings depending on the individual’s credit scoring. One can save as low as one Kenyan shilling and as high as one million bobs at an interest rate of six per cent.
To activate this loan service, go to your M-Pesa menu, then go to loans and savings option and then select KCB M-Pesa. In this case, your transaction history on M-Pesa and your savings in your KCB M-Pesa account will determine the amount of loan you will be able to apply for. Just like the M-Shwari loan, the loan eligibility criteria is that one has to be over eighteen years, have an active and registered M-Pesa account for more than six (6), months as well as an updated M-Pesa menu.
The loan features are as follows; loan amounts vary between Ksh.50 to Kshs.1M which can be repaid within one month, three months or six months. The interest rates also depend on repayment period as follows: 6% rate (1 month), 5% rate (3 months), 4% rate (6 months).
Timiza is another digital banking platform that was freshly launched in March 2018 by Barclays Bank of Kenya to offer instant online loans in Kenya. You can register by dialling *848# on your Safaricom registered line or download the Timiza application from the Google Play Store (Android). Borrowers can get loans of up to Ksh One hundred fifty thousand depending on your M-Pesa transaction history.
To qualify for a Timiza loan, you must be an M-PESA subscriber for six (6) months, an active user of Safaricom and Mpesa services and transact on Timiza. The loan amount is payable in 30 days and will charge interest of 6.17% (that is, 5% processing fee and 1.17% interest).
5. Shika loan
Shika Loan assists as another platform where borrowers can obtain loans in Kenya via M-Pesa. The application is currently available to Android mobile users in Kenya, but presently it is only Safaricom subscribers who can use this loan service. The loans limit spans as little as five hundred Kenyan shillings to Ksh 20,000. Once the loans have been officially approved, they are disbursed to your M-Pesa account within one hundred and eighty seconds (3 minutes). Furthermore, the loans are charged a fixed facilitation fee rate of 15% once the loan amount is approved.
The maximum loan repayment duration is thirty days, but borrowers can decide to pay every day, weekly, or after the maturity limit of thirty days. In case a customer fails to make payment on time, he or she will draw a 10% rollover fee on top of the full amount that is owed. Settling the amount at your earliest convenience is prudent. Contrarily, delay in refunding the amount for more than sixty days will result in being listed with the CRB as a defaulter.
In conclusion, there are many ways that a person can evaluate online loans in Kenya via M-Pesa you have to consider your options and choose the one with the least repayment interest rates.
Fastest rising loan app in Kenya. All you need is apply and wait for approval which takes a few seconds and loan is disbursed through Mpesa. You can apply for Ks2000 as a first time customer on Okash.