Understanding Legit Digital Loans Platforms in Kenya

0
Instant Mobile loans apps in Kenya

Digital Loans are popular in Kenya and this has led to increase in lending companies. On March 21, 2022, Central Bank of Kenya(CBK) announced the publication of new regulations. The regulations provided for the licensing and oversight of Digital Credit Providers (DCP). The regulations were issued pursuant to Sections 57(1), 57(3) and 57(4) of the CBK Act.

Further, on May 17, 2022, CBK reminded all operating Digital loan platforms to apply to CBK for a license.

As of the end of March 2023, only 32 loan apps had been approved. We take a comprehensive look at the different accredited digital loans platforms in Kenya. In the event you need a quick loan, it is advisable you stick to this approved list to avoid scams.

Anjoy Credit Limited

Anjoy Credit Limited is a digital loan platform in Kenya. The company offers the following digital credit solutions: Insurance Products, Checkoff loans, Salary Advance, Asset Finance, Import Duty Financing, Logbook loans, Agribusiness Loans, and Anjoy Group loans.

One can apply for the loan by filling out an online loan form accessible on the website. The company promises to respond to all loan inquiries within 24 hours on business days.

The Anjoy Group Loan targets Micro, Small, and Medium Enterprises (MSMEs). The unique feature of this loan is that Anjoy seeks to finance the acquisition of green and sustainable solutions.

Anjoy Checkoff Loans target government employees, employees of parastatals, and selected private companies that have signed MOUs and so have a checkoff arrangement with Anjoy Credit Limited.

Asante FS East Africa Limited

Asante Financial Services Group is a Credit-Led Neo Bank that provides financial services to growing businesses. The company has been in operation since 2018. Currently, it has a presence in Kenya, Uganda, Nigeria, and Rwanda.

The digital lender has partnered with Telcos, online marketplaces, airlines, retailers, payment processors, insurance companies, smartphone phone OEMs, and FMCGs, as part of their business model.

The company has listed the following loan products: Small Business Working Capital Finance, Mobile Money Agent Float Finance, Smartphone Finance, Insurance Premium Finance

The Mobile agent float finance targets mobile money agents e.g. M-Pesa agents. The loans are meant to help address the problem of liquidity. On the other hand, Smartphone finance is a loan that helps lenders buy smartphones and pay in installments over a period of time.

These are the steps to repaying an existing Asante FS Mobile loan via USSD:

  • Dial *234*2#
  • Select M-PESA Bloom
  • Select Repay Loan
  • Then select:
  • Partial Settlement: Pay in installments before the Loan due date.
  • Full Settlement: Pay the entire Loan amount at once.

The amount will be reflected in your account immediately after successful repayment.

The company penalises late loan repayment. A rollover fee will be charged on the total outstanding loan amount if the loan is not paid on the due date:

  • 3-Day Loan Product: Rollover fee of 2.75% on the outstanding loan amount due 2 days after the due date
  • 7-Day Loan Product: Rollover fee of 4.75% on the outstanding loan amount due 7 days after the due date
  • 30-Day Loan Product: Rollover fee of 5.5% on the outstanding loan amount due 7 days after the due date

EDOMX Limited

They run a credit product in partnership with Safaricom named Faraja. Faraja is a 0% interest Retail Credit in Kenya to enable users access the goods and services.

Basically, it allows customers using Lipa na M-Pesa to shop from retail stores on a credit. The credit period will vary from a week to a month. Moreover, all you need is a Safaricom SIM card, and you are good to go. Credit limits are based on credit viability just like other loan platforms.

Notably, Faraja will only be available for a maximum of two accounts under one National ID.

The refunds are billed from your M-PESA wallet. The procedure is the same for 7-day or 30-day loans. Partial repayments are also acceptable. Indeed, prompt payments will see a customer increase their credit limits.

Take note, that the minimum credit amount on Faraja is KES 20 and the maximum is KES 100,000.

In case you default on the loan, you will not pay any penalties for late payment. However, a late payment will disqualify you from using the product in the future.

Interested parties can opt-in by dialling the  Faraja USSD *799#. Loan payments are also via the same mobile USSD.

Extend Money Service Limited

The company offers individuals mobile loans of between KES 500 to KES 70,000. The unsecured loan amount is disbursed based on a person’s credit rating. In addition, the loans are repayable within 30 days.

Extend money mobile loans are processed online and money is disbursed via M-PESA once approved. The company offers Short Term Business Loans to SMEs and Short-Term Personal Loans to individuals.

Loan borrowers pay a facility fee which is a percentage of the amount borrowed. The facility fee ranges from 7% to 15% per month.

From Extend Money Website.

Also, late repayment attracts a daily interest fee once the payment period lapses. Notably, after 45 Days of Defaulting, the Customer’s loan account shall be referred to a debt collector. In addition, a 15% surcharge shall be extended on the unpaid amount to cater for the debt collector’s fee.

To access Extend Money mobile loans:

  • Using your MPESA registered phone; dial USSD *676#
  • Follow the instructions as prompted
  • When your account is created, you will be able to sign-in on the  Extend Money website to complete the process

Payment of Extend money loans is made via M-Pesa PAYBILL 196494.

Fourth Generation Capital Limited ( 4G Capital)

4G Capital is licensed and regulated by the Central Bank of Kenya and the Uganda Microfinance Regulatory Authority. The company’s digital loans target small businesses. As such, they have 4 loan products: UPIA (Instant Business Boost), KUZA (Finance for Sales), KAWI (Green Investment, Sustainable returns), and NXTGEN (Partnership for Impact).

UPIA  is a 30-day loan to help businesses stock up. The mobile loan is accessible via USSD *612#. The unsecured loan is disbursed within 24 hours of approval to business owners. The  Loan ranges from KSH 5000 to KSH 100,000.

The loan is only accessible via Safaricom and MTN mobile lines. Alternatively, you can apply for a loan via a field agent or by visiting a branch.

4G capital has 135 branches in Kenya

To qualify for the loans, one must have a business that has been running for the last 6 months and an original ID.

Repayment of 4G is done via the *612# USSD or by visiting a branch.

Getcash Capital Limited

This is a digital lending company started in 2015 that offers loans to businesses. Getcash provides mobile loans directly to M-Pesa or Airtel Money. The interest charged on loans depends on an individual’s credit score.

Giando Africa Limited (Trading as Flash Credit Africa)

Flash Credit offers salary advance loans to employed people in Kenya earning a net salary of Ksh. 30,000 and above. Loan applications are done online on the company’s website.

Flash Credit offers up to 30% of your base salary as loans. Additionally, the loan limit will be determined by the documents a lender provides. Once, the loan is approved it is disbursed to a lender’s bank account or mobile money account.

The salary advance loans accrue a 20% interest, repayable after one month. Flash credit loan repayment is via M-Pesa PayBill – 4051255.  The lender’s ID number is the account number when paying.

Inventure Mobile Limited (Trading as Tala) 

Tala is one of the popular mobile loan apps in Kenya. Currently, the Tala app has over 10 million downloads on the Google Play store.

The digital loans app has since disbursed more than KES 300 billion in loans and charges an interest rate of between 5% and 15. However, the limit is limited to two months (61 days) to repay, so borrowers should take note of that.

Applicants can apply for up to KES 50,000 loans via the mobile app. Once approved, funds are sent straight to the lender’s M-PESA account.

Borrowers can repay their Tala loan with M-PESA Xpress or via our Tala’s M-Pesa PayBill 851900. When making a payment, your Tala registered phone number is the account number.

Jijenge Credit Limited

Jijenge is a non-deposit-taking micro-lender institution offering credit facilities to both individuals and businesses. The company offers a variety of loan products such as Log Book loans, Bid Bonds, School Fees Loans, Asset Finance, loans on title deeds, and loans against Rental Income.

The general Jijenge Loan requirements are:

  • Loan application interest rate is charged at reducing balance method
  • They process loans immediately.
  • It is simple and straightforward
  • You repay after 3 months
  • With its flexible and longer repayment, no need to worry about loan installments

Documentation requirements for each credit facility vary.

To apply for a loan, you can download the Jijenge application form online, print and fill out the form, and return it to their office. On the other hand, you can visit their office and fill out the loan application form.

Jumo Kenya Limited

Jumo Kenya Limited is a digital loan platform. It currently operates in six countries across Africa. The company provides a digital lending platform through which its partners can lend money to individuals and small businesses. Notably, it relies on AI for credit scoring.

Jumo has partnered with ABSA, Letshego, Ecobank, and Airtel to disburse digital loans.

Recently, Jumo appointed former Kenyan Cabinet Secretary in the Ministry of ICT, Innovation and Youth Affairs Joe Mucheru as the company’s board president.

Kweli Smart Solutions Limited

This is a mobile loan company that disburses loans of between KES 1,001 to KES140,000. The loans are disbursed only via M-Pesa mobile accounts. The digital loans are specifically for business owners.

Loans are applied via a WhatsApp Menu. The Kweli Smart mobile loan application process is starts by sending a WhatsApp message ‘sema’ through to 020 250008. Kweli Smart will then ask for a few documents and 24 months of M-Pesa statements.

Lenders can repay the loans via :

  • WhatsApp menu select My Profile
  • Select Loan then  Repay Loan.
  • You will receive an authorization request from Safaricom to enter your M-Pesa PIN.

Borrowers can also make repayment via Kweli Smart M-Pesa pay bill – 4066267. The account number is the borrower’s ID Number.

Letshego Kenya Ltd

Letshego Kenya Limited is a credit-only microfinance institution in Kenya providing loans to individuals across both the public and private sectors. It has operations in 11 sub-Saharan African markets, including Eswatini, Ghana, Kenya, Lesotho, Mozambique, Namibia, Nigeria, Rwanda, Tanzania and Uganda.

Apply for Letshego Digital Loans:

Letshego has a mobile app that enables lenders to borrow money. Borrowers can also dial USSD *184# to access instant mobile loans. The loan app is available in the Google Play store and Apple’s App Store for iOS.

Letshego Kenya offers a diverse range of loans from KSH 10,000 to KSH 3,000,000. The duration for repayment can be anywhere from 6 months to 7 years. They provide competitive interest rates with a flat rate of 17% and no extra charges for processing, insurance, withdrawal, or late fees.

Additionally, Letshego Kenya Limited runs LetsGo Cash in collaboration with Creditinfo Kenya. This service offers instant, short-term loans, ranging from KES 1,000 to KES 100,000, payable in 30 days.

Accessing LetsGo Cash

LetsGo Cash can be accessed on Letshego’s LetsGo Digital Mall, through the Android Playstore and Apple App Store, and via the USSD code *435#.

Little Pesa

Little Pesa loan app (also known as Kashnap loan app)  is a fast and secure mobile money lender providing fast loans to both smartphone and feature phone users in Kenya.

The company offers Short Term Loans of up to Ksh 200,000. They offer Product Financing based on the Buy Now and Lipa Later (BNPL) model. Loans are for a period of 3-12 monthly with the maximum amount set at KES 300,000. Finally, Little Pesa offers Flexipay, a product of KES 300,000 loan with interest rates as low as 4.5% p.m.

To get loans from this lender, you can Download the Little Pesa mobile loan app from the Google Play Store or from Apple’s App Store or dial USSD code *483*93#.

Based on the loan product, Little Pesa may require an ID Copy, latest Payslip (if applicable), and Bank and MPESA statements for the last 3 months. On approval, you will get an SMS from Little Pesa specifying your approved loan limit.

Little Pesa Digital Loans Repayment

The repayment period is up to a maximum of 62 days. When the loan repayment date is due borrowers can pay by dialing USSD code *483*93# or pay via Little Pesa Mpesa PayBill No: 755141 as follows:

  • Go to Mpesa
  • Select Lipa na Mpesa
  • Select PayBill
  • Enter business number 755141 ( Little Pesa PayBill number)
  • Enter your mobile phone number as the account number
  • Enter the loan amount to repay
  • Enter Mpesa PIN
  • Confirm and submit

Take note, Little Pesa’s  M-Pesa pay bill for Product financing and Flexipay loans is 172555.

MFS Technologies

MFS Technologies Limited Loans is a digital loans lending platform that provides fast and affordable loans to borrowers in Kenya. You can download the MFS Technologies Limited Loan App from Google play store.

M-Kopa Loan Kenya Limited

M-Kopa is a flexible digital financing platform that helps users purchase assets and also offers cash loans. The mobile lending platform is accessible via an app or via the USSD code

The platform gives users access to Smart Phones, Fridge’s, Radios, Light bulbs, TVs, Jikokoa, and Solar panels.

To qualify for M-Kopa phone loan, one must have:

  • Active Mpesa account
  • Proper identification documents i.e. ID card
  • Make a deposit.
How to Repay M-Kopa Cash Loans

The PayBill number for M-Kopa loan payments is 333222. Through this PayBill one is able the daily /weekly or monthly instalments via their phone.

When using a feature phone access M-Kopa services via this USSD code. *685#

How to Use the code to check Account balances :
  • Dial *685#
  • Select Account Balances
  • Account balances will be displayed.

You can check your M-Kopa account balances also by sending an SMS ” Balance” to 22201.

Usually, M-Kopa requires you to pay a deposit and the rest of the payment is made in 365 days. Defaulting on M-Kopa payment may lead to deactivation of your electronic device eg, your phone. Remember, take key note of M-Kopa’s terms before borrowing or purchasing an electronic.

This list covers half of the 32 accredited lenders and we will update with part two.