Best Loans Apps in Kenya
Best Loans Apps in Kenya. If you find yourself tight on cash before your subsequent earnings and need to deal with an emergency, it might be worth researching the best loan applications in Kenya.
Many Kenyans are financially unprepared to cover unforeseen expenses: Only 24% save for emergencies, according to a report by Enwealth Financial Services and Strathmore University Social Security study group, and most individuals cannot access loans from mainstream banks and other financial institutions.
Thankfully, money-borrowing applications have bridged this void by providing quick and seamless loans to borrowers of diverse financial backgrounds, and there’s no shortage of loan applications for those needing cash for emergencies, as in instant loans.
In fact, there is a sea of options to explore. To help you find the best loan app that is right for your situation, compare our selection of top genuine apps that will lend you real money in 2024.
Legitimate Online Money Lenders of 2024
In Kenya, several mobile apps offer reliable and convenient access to quick loans, primarily through Mpesa. Among these, Tala stands out as one of the best options. Here’s an overview of why Tala is considered a top choice:
1. Tala – Best Overall
Key Features:
- Low-Interest Rates: Tala offers competitive interest rates starting at 0.3% per day, which is relatively low compared to other loan apps.
- Instant Cash Disbursement: Loans are disbursed almost immediately without a rigorous credit history check, making it accessible to a wider range of users.
- Loan Range and Limits: Initial loans range from Ksh1000 to Ksh2000 for customers with bad credit. With timely repayments, the borrowing limit can increase up to Ksh50,000.
- No Hidden Fees: Tala does not charge origination or prepayment fees, ensuring transparency in their loan processes.
- Penalties for Default: While there are no hidden fees, late repayments or defaults can lead to blacklisting and cancellation of borrowing limits.
- Global Presence: Founded by Shivani Siroya in 2011 and launched in Kenya in 2014, Tala also operates in the Philippines, India, and Mexico, showcasing its reliability and trustworthiness.
![Mobile Apps Offering Quick Loans to Kenyans](https://how.africa/wp-content/uploads/2023/07/What-you-should-know-about-apps-that-lend-money-in-Kenya.png)
Customer Relations and Transparency:
Tala is well-regarded for its excellent customer relations and transparent policies. The app’s ease of access and straightforward terms have earned it positive reviews from users, making it a preferred choice for many Kenyans seeking quick loans.
Click on the button below to download the Tala Loan Application to find out more about it.
Other Notable Loan Apps in Kenya
While Tala is highly recommended, other loan apps also provide valuable services. Here are a few to consider:
2. Branch
Branch stands out as a groundbreaking loan application, essentially functioning as a digital banking platform accessible to all. Renowned for its ability to extend substantial loans, Branch boasts the distinction of offering the highest mobile loan in Kenya, with a ceiling of Ksh300,000. Positioned as an ideal solution for individuals requiring funds for significant expenses such as vehicle repairs, home renovations, or medical bills, Branch sets the bar high. Even for those seeking smaller amounts, the app facilitates borrowing with a minimum threshold of Ksh500.
What distinguishes Branch further is its competitive monthly interest rates, ranging from 1.7% to 17.6%. This rate, albeit subject to fluctuations, remains relatively lower compared to other options in the market. It is noteworthy that the interest rate is contingent upon diverse factors, including the borrower’s repayment conduct subsequent to loan acquisition. Additionally, Branch offers borrowers a flexible loan tenure spanning from 9 to 52 weeks, tailored to suit the specific loan amount availed.
Beyond its core lending function, Branch serves as a comprehensive financial platform, offering innovative budgeting and savings tools. Through its pioneering features, users can explore high-yielding savings products such as Flexi Savings and Target Savings. With interest rates set at 9% and 15% per annum, respectively, these savings options provide users with avenues to maximize their financial growth while maintaining liquidity.
3. Zenka Loan
Zenka Loan App stands out in the lending landscape for its remarkable repayment flexibility, making it an attractive option for borrowers in Kenya. With loan amounts ranging from Ksh500 to Ksh80,000 (recently revised from Ksh30,000), and competitive interest rates of 9-39%, Zenka offers borrowers the freedom to choose repayment terms of up to 61 days.
What sets Zenka apart is its borrower-friendly policies, particularly for first-time customers. New users have the opportunity to access their loan limits interest-free if they repay within five days, incentivizing prompt repayment. While each disbursed loan incurs a 5% processing fee on principal amounts, Zenka’s repayment flexibility comes into play through various options.
Firstly, borrowers can opt to repay their loans in two installments within the specified loan term, without incurring progressive interest charges. Alternatively, the ZenkaFlexi option allows borrowers to extend the repayment period to 12 months, accommodating those who require a longer timeframe to settle their obligations.
Furthermore, Zenka permits customers to apply for additional loan amounts, provided their active loan is within the credit limit. However, failing to repay the Zenka loan on time incurs a penalty rate of 1% on the outstanding amount from the end of the loan term. Timely repayment is crucial not only for avoiding penalties but also for enhancing one’s creditworthiness and increasing the Zenka loan limit over time.
Operated by Zenka Digital Limited (Zenka Finance), the loan app was founded in 2018 by two Polish investors, Loukas Notopoulos and Krzysztof Łodykowski, both hailing from Warsaw, Mazowieckie, Poland.
![Best Mobile Loan Apps in Kenya](https://how.africa/wp-content/uploads/2023/07/zenka-loan-app-features-kenya.png)
4. Patron
Patron emerges as the go-to lender app for individuals seeking small loan amounts to cover minor expenses, particularly those with less-than-perfect credit histories. With loan offerings ranging from Ksh500 to Ksh7,000 at a flat interest rate of 1% per day, Patron provides borrowers with a swift and accessible borrowing option.
Patron distinguishes itself with a fair repayment term of 60 days for short-duration funding and 90 days for long-term loans, providing borrowers with ample time to repay their obligations. Additionally, the app boasts instant loan deposits to Mpesa, catering to individuals with urgent financial needs.
Owned by Russian businessman Mikhail Lyapin, Patron embodies reliability and efficiency in meeting the financial needs of Kenyan borrowers. As a cloud technology expert from Murmansk, Mikhail Lyapin brings a wealth of expertise to the lending industry, ensuring a seamless borrowing experience for Patron’s users.
![Best Mobile Loan Apps in Kenya](https://how.africa/wp-content/uploads/2023/07/best-loan-apps-in-Kenya-2023.png)
5. Zash Loan app – Optimal for Minimal Fees
Zash Loan app stands out as a premier consumer lending platform under Zillions Credit Limited Company, providing personal loans ranging from Ksh500 to Ksh50,000 with minimal credit score prerequisites.
Regarded as one of Kenya’s finest and most authentic loan apps, Zash delivers emergency loans at a competitive daily interest rate of 1%. It earns our accolade for the best loan app in the low fees category owing to its innovative discount marketing approach. Zash offers redeemable coupons that amplify consumers’ loan limits during applications and furnishes repayment coupons that reduce the loan amount during settlement.
Moreover, Zash extends a helping hand to borrowers facing repayment challenges. Should a borrower encounter difficulties meeting the loan deadline, they can seek an extension from the Zash Loan team, and no interest accrues during this grace period.
However, failing to communicate with the creditor about loan defaults incurs a penalty. The initial penalty fee is 2% of the unpaid loan balance for the first 15 days past the due date, escalating to 3% thereafter.
6. Lend-Plus – Exemplary Transparency
LendPlus, a pioneering fintech company, offers personal loans ranging from Ksh500 to Ksh30,000, with repayment terms spanning from five to thirty days at a daily interest rate of 2%. While the interest rate may seem marginally high, LendPlus stands out for its transparency.
Unlike many competitors, LendPlus enables borrowers to extend their loan tenure, provided they settle the accrued interest on the borrowed amount. Moreover, LendPlus imposes no origination or processing fees, streamlining access to emergency funds.
Operated by Aventus Technology Limited, a subsidiary of Aventus Group, LendPlus embodies transparency and efficiency in the lending sphere. Led by CEO Andrejus Trofimovas, Aventus Group is a Lithuanian investment company that prioritizes consumer trust and financial transparency.
![Best Mobile Loan Apps in Kenya](https://how.africa/wp-content/uploads/2023/07/the-best-loan-apps-in-kenya.png)
7. Timiza – Pioneering Online Services
Setting itself apart from conventional loan apps, the Timiza loan application offers a comprehensive suite of online services, including bill payments, insurance premiums, and airtime top-ups, alongside loan facilities of up to Ksh150,000, even for borrowers with limited credit histories.
Timiza, a brainchild of Absa Bank, is easily accessible through mobile applications available on various app marketplaces or by dialing *848# on mobile devices. Timiza loans feature a modest monthly interest rate of 1.56% and a nominal 5% origination fee, with a standard repayment period of 30 days.
In cases of loan repayment defaults, Timiza extends the loan term by one month, albeit with a 5% surcharge calculated from the outstanding balance, ensuring borrowers have avenues to manage financial obligations responsibly.
![Best Mobile Loan Apps in Kenya](https://how.africa/wp-content/uploads/2023/07/Timiza-loan-app-kenya-2023-best-loans.png)
Other noticeable loan apps in Kenya include:
- M-Shwari – A collaboration between Safaricom and Commercial Bank of Africa, M-Shwari integrates directly with Mpesa, providing seamless loan access and savings services.
- Timiza – Offered by Absa Bank Kenya, Timiza provides quick loans and additional banking services through a mobile platform.
- Okash – This app is popular for its straightforward application process and quick disbursement of loans, catering especially to those needing small, short-term loans.
NOTE: These apps have been selected based on criteria such as customer reviews, ease of loan access, interest rates, and transparency, ensuring that users have a reliable and trustworthy experience.
CAUTION! on Online Mobile App Lenders
Before proceeding with loan applications via mobile apps in Kenya, it’s imperative to conduct thorough market research to shield yourself from potential scammers disguising themselves as legitimate credit providers, aiming to exploit unsuspecting individuals.
In recent times, there has been a noticeable surge in predatory lenders resorting to various advertising tactics, particularly through paid promotions on social media platforms such as Facebook and YouTube, to bolster their perceived legitimacy. Unfortunately, many fall prey to these deceptive strategies.
Therefore, exercise vigilance and caution when navigating through loan offers online. Scrutinize the credibility of lenders, verify their authenticity through reputable sources, and refrain from hastily divulging personal or financial information without conducting due diligence. Stay alert and informed to safeguard your financial well-being from potential fraudulent schemes.
How to Identity a Scam Loan App in Kenya. Here are the five steps to make you notice you are dealing with a scam app.
- Lack of Website or FAQ Section: Scam loan applications often lack an official website, and if they do have one, it may be missing a Frequently Asked Questions (FAQs) section, which is a common red flag indicating potential fraud.
- Upfront Fees: Predatory money lenders may request fees upfront before granting loans. However, individuals who pay these fees might later find out that they do not qualify for the loan amount they were promised, highlighting the deceptive nature of such lenders.
- Low Ratings on App Stores: Loan apps with ratings lower than 3.2 stars on application stores may signify poor lending practices. These ratings can serve as indicators of high-interest rates, aggressive debt collection methods, or other unethical behavior by the lending institution.
- High Interest Rates: Some fraudulent loan apps attract borrowers with seemingly attractive offers but impose exorbitant interest rates or hidden fees, exploiting individuals who are in urgent need of financial assistance.
- Contacting Relatives: Unscrupulous lenders may resort to contacting borrowers’ relatives or friends in an attempt to pressure them into repaying debts. This invasive tactic is often a sign of unethical lending practices and should raise concerns about the lender’s legitimacy.
In Other News: The Tala Loan App Review
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