Not all banks offer fair rates to their clientele. With the rise of financial lenders in Kenya, you can choose from a variety that provides friendly loan rates. It all depends on what your monetary needs and are.
Banks loans come with many advantages not limited to the growth of the business, total control of your cash, and how you spend it. Plus, zero interference from the lender, friendly interest rates, and even extended repayment plans.
When you decide to take a loan, you usually check the benefits it offers. Things like favorable interest rates, flexibility on payment, no constant follow-up from the lender, and what happens when you default (fail to pay on time.)
Let’s see the best banks for loans in Kenya.
1. KCB Bank: Lengthy Loan Repayment
KCB bank started in 2015 and has been a credible financial services provider. Apart from offering loans, it has other products, including insurance, mortgages, savings, investments, credit cards, and savings.
You can choose this financial entity to secure different types of loans from salary advance, masomo, emergency, and even a personal unsecured loan. The latter has some attractive benefits, including a maximum loan borrowing limit of up to 2 million and flexible repayment periods of up to 4 years.
When you compare the interest rates of this institution with other Kenyan banks, KCB has some pretty attractive rates. The 13% percentage rate is subdivided between CRB’s rate of 19% and 4% bank variable margin.
2. Equity Bank: Friendly Interest Rate
The next bank we have is Equity, which is accredited as a profitable bank. It has a variety of loans such as Personal loans, Mortgage loans, Merchandise loans, Unsecured loans, and Car loans. For Personal loans, it’s ideal for those who want finance for personal needs such as Salary advance, Eazzy loans, and Equiloan.
What’s more, the Merchandise loan lets you use it to improve living standards. Note that it’s only available for Equity customers and includes the Maji Loan, Jamii Safi loan, Mortgage Loans, Car Loans, and Unsecured loans.
This financial institution offers a fixed deposit rate of up to 6.65%. You can also use the online Equity bank loan calculator to compare advances offered by other lending institutions. The results show excise duty, repayment amount, loan interest, and loan appraisal fee.
3. I&M Bank Limited: Favorable Mortgage Loan Rates
Like Equity Bank, I&M Bank Limited is also a commercial financial service provider. Its headquarters are in Nairobi, and they offer up to 7.5% per year, depending on the savings account. Apart from loans, some of the services include transaction accounts, trade finance, credit cards, debit cards, prepaid cards, savings, and mortgages.
This institution is among the top banks with great interest rates for investment and mortgages. With 2 main loan categories: Car and House loans, you can enjoy competitive prices, unlike other banks in Kenya.
If planning to own a house and need financial assistance, I&M bank is an ideal option. It gives its customers advance for:
- Renovations, extensions, and repairs of properties
- Purchasing new residential houses
- Topping up current home loans
- Buying undeveloped land and more
An advantage is that you can borrow between Ksh 2 million up to Ksh 100 million, payable within 20 years.
4. NCBA Bank: Fast Loan Disbursement
NIC and CBA banks merged on 6th December 2018 to form the now renowned financial organization, NCBA. It has since improved its services to offer fast financial packages, especially loan disbursements. Not only that but also the asset solutions are customized to each specific need.
Although the consumer loans rates are higher than other banks, you’ll enjoy a fast 13% interest rate. Other loans include Logbook loans, construction loans, plot loans, personal loans, and mortgages.
Requirements for Plot Loans
If planning to acquire a plot loan in both urban and rural locations for up to 70%, NCBA bank will sort you out. You can plan your finances and returns to pay the amount borrowed within 60 months, equivalent to 5 years. Check out additional NCBA Plot Loan features.
5. Absa Group Limited: Easy Online Loan Service
Absa is one of Africa’s financial service groups that accommodates up to 12 countries with over 42,000 employees. With a flexible physical and online financial plan, this institution is among the best that lets you enjoy online loans with reasonable rates of up to 14%. That means zero queuing when needing financial assistance, minimal to no follow-ups, zero face-to-face transactions, and other benefits.
With innovative technology, Absa bank has multiple online platforms. Let’s look at Timiza Loan App.
Timiza Loan App is an easy-to-use mobile application that allows Absa’s members to access loans. Not only to let you see the current interest rate but also the deadline for repayment.
You can access this mobile-friendly tool by downloading from Google Playstore or dialing *848#. After filling in the registration details, proceed to the loan application requirements. Once approved, accessing the Timiza app is easy through Mpesa Mobile Service. Note that repayment should be within 30 days using Mpesa Paybill 300067.
How to Increase Your Timiza Loan Limit
If currently, you’re using this online loan service, you can follow these steps to increase the limit:
- Transact more on other Timiza services such as depositing cash, paying utility bills, buying airtime, and subscribing to insurance
- Increase your Mpesa services
- Improving your Timiza savings
As a customer, you can get fast online assistance using the chat platform known as Abby WebChat.
The banks in Kenya have different and similar loan services. You can take an advance to grow your business, take complete control of your loan, enjoy lengthy loan repayment periods, and competitive interest rates. Also, you can use a plot loan for property renovations, purchase, and rebuilding to suit your asset needs.
If you want one that gives you fast loan processing, choose NCBA. For friendly online use, Absa is great, especially with the Timiza application. Always check the terms and conditions of the loan before proceeding with the application. Go through this best bank for loans in Kenya review for more information.