Best Personal Loans Of 2024 in Kenya

There are many factors to consider when looking for the best personal loans in Kenya.

• Interest rate: This is the most crucial factor, as it determines how much you’ll pay back in total. Compare rates from different lenders and consider any introductory offers before deciding to take the loan.
• Loan amount: Make sure the loan amount you apply for is enough to cover your needs but don’t borrow more than you can afford to repay. Make sure to borrow what you can easily repay to avoid late payments which will destroy your credit reputation.
• Repayment term: Choose a term that fits your budget and allows you to comfortably repay the loan. Longer terms typically have lower monthly payments but higher total interest costs.
• Fees: Ask about any origination fees, processing fees, late payment fees, or prepayment penalties. These can add up significantly.
• Eligibility requirements: Check the eligibility criteria for each lender, including minimum income, employment status, and credit score requirements.
• Customer reviews: Read online reviews from other borrowers to get an idea of the lender’s customer service and loan process. Customer reviews can also give you alternative lenders and you get to learn from experience.

Stanbic Bank offers a variety of personal loans to meet your different financial needs. Whether you’re looking to consolidate debt, cover unexpected expenses, or finance a special occasion, Stanbic Bank has a loan option for you.

Loan requirements:

• Be at least 18 years old
• Be a Kenyan citizen or resident
• Have a regular source of income
• Have a good credit history
• Be employed with a registered employer for at least 3 months (for salaried customers)
• Be in business for at least 6 months (for self-employed customers)
• Have a valid Kenyan ID

Pros:

• Competitive interest rates
• Flexible loan terms
• Fast and easy application process
• No collateral required
• Top-up facility available after 6 months of good repayment

Cons:

• Interest rates may be higher than other types of loans, such as secured loans
• You may need to have a good credit history to qualify
• There may be origination fees and other charges associated with the loan

KCB Bank offers various personal loan options to Kenyan residents, catering to both secured and unsecured needs. The foolowing are types of loans you can expect from KCB Bank:

• Unsecured Personal Loan: No collateral required, with loan amounts of up to Kes 8 Million and repayment periods up to 96 months.
• Unsecured Non-check Off Loan: Similar to the Unsecured Personal Loan, but requires an active KCB account for a minimum of 6 months.
• Sharia Compliant Personal Loan: Adheres to Islamic banking principles, with loan amounts up to Kes 2 Million and repayment periods up to 48 months.
• Personal Secured Loan: Requires collateral (title deeds, logbooks, etc.) and offers higher loan limits (based on security value) and longer repayment periods (up to 72 months).
• KCB M-PESA Loan: Mobile-based loan accessible through your M-PESA account, with amounts ranging from Kes 1,001 to Kes 300,000 and flexible repayment periods (1 day to 12 months).
• KCB Vooma Loan: Instant mobile loan with loan amounts up to Kes 300,000 and flexible repayment periods (1 day to 1 year).

Loan Requirements:

• Valid Kenyan ID or passport
• Proof of income (payslips for salaried individuals, income statements for self-employed)
• Active KCB account (for some loan types)
• Good credit history (may vary depending on loan type)
• Collateral (for secured loans)

Pros:

• Wide range of loan options to suit different needs and budgets
• Competitive interest rates
• Flexible repayment terms
• Convenient application process (including mobile options)
• Higher loan limits with secured loans
• Rewards program (Simba Points) for some loan types

Cons:

• Interest rates can be higher than other lenders, especially for unsecured loans
• Processing fees and other charges may apply
• Shorter repayment terms for mobile loans may lead to higher monthly payments
• Collateral required for secured loans

Faulu Microfinance Bank offers various personal loans in Kenya, catering to individuals with diverse needs. Types of Loans offered by Faulu Microfinance:

• Emergency Check-off Loan: Up to Kes. 500,000, secured by salary check-off for employees with a consistent paycheck.
• Personal Loan: Up to Kes. 500,000, unsecured loan for salaried individuals and business owners.
• Pesa Chap Chap: Short-term mobile loan between Kes. 300 and Kes. 10,000 for existing Faulu clients with a good repayment history.

Loan Requirements:

• Age: 18 years and above.
• Kenyan citizen with valid ID.
• Proof of income (payslips, bank statements, business documents).
• Good credit history (for some loan types).
• Guarantors may be required depending on the loan and amount.

Pros:

• Accessible: Offers various loan options for different needs and creditworthiness.
• Competitive rates: Interest rates are generally within the market range.
• Flexible repayment terms: Loan terms can range from 1 to 60 months.
• Convenient application: Apply online, through USSD (*339#), or at a branch.
• Fast processing: Approval can be within 24 hours.

Cons:

• Limited loan amounts: Maximum loan amount is Kes. 500,000.
• Interest rates can be high: Rates vary depending on creditworthiness and loan type.
• Fees: Origination fees and other charges may apply.
• Guarantors required: Some loans require guarantors, which can be inconvenient.

Faulu personal loans can be a good option for Kenyans seeking quick and accessible financing for emergencies, personal needs, or small business ventures. Visit Faulu Microfinance Bank.

Tala is among the most popular loan apps in Kenya. The app has massive downloads and good ratings from users. Apply once and borrow against your credit limit of up to KSH 50,000 as often as needed. Download the Tala app from the Google Play Store and register to access quick loans.

Loan Requirements:

• Be a citizen or resident of the eligible country Kenya
• Be 18 years or older
• Have a valid government-issued ID
• Have a source of income
• Have a mobile phone number with airtime and internet access

Pros:

• Fast and convenient: Apply and receive funds within minutes through the mobile app.
• Flexible repayment: Choose a repayment date that fits your income cycle.
• No collateral required: You don’t need to own any assets to qualify.
• Credit score not mandatory: Tala uses alternative data to assess your creditworthiness.
• Potential to increase credit limit: On-time repayments can lead to higher credit limits over time.

Cons:

• Relatively high interest rates: Compared to traditional banks, Tala’s interest rates can be higher.
• Shorter repayment terms: Repayment terms are typically shorter than traditional loans, which can lead to higher monthly payments.
• Limited loan amounts: The maximum loan amount is lower than what you might get from a bank.
• Not regulated as a bank: This means there may be fewer consumer protections compared to traditional loans.
• App-based platform: Requires a smartphone and internet access, which may not be accessible to everyone.

Here are some additional tips for finding the best personal loan in Kenya:

• Shop around: Compare rates and terms from different lenders before making a decision.
• Don’t rush: Take your time to understand the loan terms and conditions before signing anything.
• Beware of hidden fees: Make sure you understand all the fees associated with the loan before you apply.
• Borrow only what you can afford: Don’t borrow more money than you can’t comfortably repay.