There are about 49 loan apps in Kenya as of writing this article. Therefore, I thought it fit to write about these apps and exactly what you need to know about them.
Today many Kenyans are borrowing money online without getting to know what they are getting themselves into.
However, before we look into this deeper, here are the common leading apps in Kenya.
- Shika Loan
- SC mobile Kenya
- Afriloan Kenya
- Kenya Loans Hub
- Kenya ChapChap4
- Jumbo Kenya Pesa
- Kenya Quick Loans Shop
- Sn Loans
- Kenya Quick Loans Market
- Mpapo loans
- Tala Pewa loans
- Mkopo Halisi Kenya
- mOkoa Mobile loans
- Fetti loans
- Afri Kash Kenya
- Tunza Chapchap loans
- Idooh mobile loans
- Pokea Loans
- Simple loans
- Shika App
- Uwezo Kash
- Loan Free
- Upazi loans
- Karibu Kash
- Msingi loans
- Fanikisha loan
What you need to know about loan apps in Kenya
Getting cheap credit facilities is everyones dream. That is exactly what loans apps in Kenya do. I at least know someone who has taken a loan from these apps.
I must admit that I have more than once sought there services. From my experience, here are a must know things about these apps.
Easy to get loans
Unlike traditional banks, these apps do not require guarantors or any form of collateral. There is no paperwork. All you have to do is download the app, fill in some information and your loan is ready. This could take as little as 2 minutes.
This makes them popular with Kenyans who can get loans easily to sort out issues that are pressing them
Your information if not private.
One of the things loan apps will require of you is to allow them access your information. You may not believe me but these apps access your messages, your contacts list, your call lists, your position via GPS and very other confidential information.
While this is important to determine the your credit score, these apps put your confidential information at risk of being stolen
To make matters worse, some of this information is stored in servers abroad. This make your information easy to steal by spammers and identity thieves.
Moreover, these apps can actually call or send messages people in your contact list in case you default.
Those most of these conditions are in their terms and conditions, most of us are blinded by the loan we are looking for versus the risks involved.
They are not regulated
Unlike banks, loan apps in Kenya are not regulated. This means that should there be a dispute between you and them, you are on your own.
The Central Bank of Kenya governor recently warned that there are no laws governing these apps. In fact, he compared them to shylocks.
This means that should anything go wrong, you carry the whole burden alone.
Have very high interest rates
You will see an app offering an interest rate of 7.5%. Though in itself it does not look expensive, what most users do not know is that this is usually the rate per month. That means in excess of 40% per year, making them among the most expensive loans in Kenya.
In addition, there are application fees, beside penalties for late payments.
By the way, most of these loans are payable within a month of borrowing.
You can easily get into debt.
Because you can get a loan in a matter of minutes, it is common for people to borrow on multiples apps and fail to pay.
If you are unable to pay, they get you into debt.
I know individuals borrowing a loan from one app to pay another loan on a different app.
Failing to pay means, you are listed with CBR.
Since there no guarantors or any collateral, failing to pay means you are listed on the Credit Reference Bureau( CBR).
If you are listed on CBR, you cannot get any credit services from financial institutions in the country unless you clear you name. This means paying all loans due.
There are usually very few requirements to get loans in these loan apps in Kenya. In most cases all you need is
- A phone with a Safaricom Mpesa line
- An ID Card
However as I have said, you need to careful using this unauthorized loan app in Kenya.