How to get a digital loan

In times of financial need, getting quick access to cash is crucial. Traditional loan processes often involve lengthy procedures and security requirements, making them unsuitable for urgent situations. Fortunately, with the advent of technology, digital loans have emerged as a convenient solution for obtaining immediate funds using just your mobile phone. Here’s a comprehensive overview of how to access digital loans and the options available in Kenya:
What are Digital Loans?
A digital loan is a type of loan where individuals borrow money using their mobile phones without the need for any collateral. These loans are processed quickly, often within minutes, making them an ideal option for emergencies.
Features of Digital Loans
- Typically offer small loan amounts, usually under 5000 shillings, with some lenders providing as little as 1000 shillings.
- Quick and easy application process, allowing borrowers to access funds promptly.
- Repayment terms vary but are generally short, with durations ranging from a few weeks to a few months.
- Most digital lenders do not require a lengthy credit history or extensive documentation for approval.
Popular Digital Loan Providers in Kenya
- Mshwari
- Loan Limit: Minimum of Sh. 100 to a maximum of Sh. 20,000
- Repayment Duration: 30 days
- Interest Rate: 7.5% flat rate
- Eligibility: Active Mpesa user for over 6 months
- KCB Mpesa
- Loan Limit: Minimum of kshs 50 to a maximum of kshs 1,000,000
- Repayment Duration: 1 – 3 months
- Interest Rate: 1.16% per month with a one-off negotiation fee of 2.5%
- Eligibility: Registered & active Mpesa user for over 6 months
- Branch
- Loan Limit: Starting from Sh. 2,000
- Repayment Period: Flexible, ranging from one month to one year
- Eligibility: Active Facebook and M-pesa accounts
- Tala (formerly Mkopo Rahisi)
- Loan Limit: Ranges from Sh. 1,000 to Sh. 50,000
- Approval Time: Within 5 minutes
- Eligibility: Quick evaluation process, minimal documentation required
- Utunzi
- Loan Limit: Ranges from Sh. 500 to Sh. 100,000
- Approval Criteria: Consideration of credit score and sign-up questionnaire information
- Eligibility: Android mobile phone with active M-pesa account
- Stawika
- Loan Limit: Determined based on mobile phone data evaluation
- Approval Time: Less than 5 minutes
- Eligibility: Automated assessment process, suitable for quick loan access