Personal unsecured loans have become increasingly popular over the recent past, with many people turning to them to meet unexpected expenses or fund various personal and business ventures.
The fact that these loans are not by any types of assets or property as collateral and that they are relatively easier and faster to secure makes them a popular option for most people who may not be in a position to take secured loans.
Still, unsecured loans carry interest rates and consequences for borrowers that default on their loans.
Due to the high risk of non-repayment posed by unsecured loans, most banks are wary of giving unsecured loans. However, the following is a list of banks which have no qualms in giving you that much needed unsecured loan.
1. Stanbic Bank
2. I&M Bank
4. KCB
1. Stanbic Bank
Stanbic Bank is one of the Kenyan banks that offers personal unsecured loans to their customers at competitive interest rates and facility fees.
With an approval time of 48 hours, Stanbic offers a minimum loan amount of Kes. 50,000 and a maximum loan amount of Kes. 4 million customized to every customer’s needs.
Stanbic also offers loan top up after 6 months of repaying loan while providing accessible and affordable credit life insurance on all loans from the bank’s trusted partners.
2. I&M Bank
Another Kenyan bank that offers unsecured personal loans is I&M Bank through its I&M Bank Unsecured Personal Loan plan.
The plan includes competitive interest rates and processing fees and boasts a quick turnaround time of 24 hours for the processing of loan applications.
Besides not requiring any collateral to secure the loan, I&M Bank also offers its customers the option to choose between a minimum of one month to a maximum of sixty months within which to service their unsecured loans.
3. Standard Chartered Bank
Standard Chartered Bank also offers unsecured personal loans to their clientele at affordable and flexible interest rates from as low as 13.5% p.a.
Standard Chartered’s unsecured loans are covered by Credit Life and Retrenchment insurance policies to cover repayments in case of a customer’s retrenchment, accidental death, or accidental permanent disability.
Moreover, Standard Chartered allows its customers to borrow in Kenyan shillings or U.S. dollars and to consolidate all their existing loans with other banks into one loan with the bank.
4. KCB
KCB offers various unsecured loans to its customers, including personal unsecured non-check off loans, personal unsecured check off loans, Masomo loan, and salary advance.
a) Personal unsecured non-check off loans
Personal unsecured non-check off loans are available to salaried and self-employed persons at a competitive interest rate of 13%.
Further, the bank charges a 2.5% negotiation fees and an excise duty which is 20% of the negotiation fee.
One can borrow between Kes. 20,000 and Kes. 2,000,000. Customers have up to 36 months within which to repay this type of loans.
b) Personal unsecured check off loans
KCB also offers personal unsecured check off loans to government employees or companies with agreement with KCB Bank.
Customers can take check-off loan of up to Kes 4 Million, which are repayable in up to 72 months (6 years), with monthly repayments remitted by employers.
c) Masomo Loan
Anyone who has had an active KCB account for a minimum of 3 months, is salaried or has a guardian is eligible for a Masomo Loan of between Kes. 100,000 and Kes. 4,000,000to advance their education and pay it back over a period of 24 months.
d) Salary Advance
The Salary Advance loan is open to salaried KCB Bank account holders who have had an active for a minimum of 3 months. Customers can access an advance of up to 100% of their salary, at a maximum of Kes. 100,000.
5. National Bank
National Bank offers unsecured personal loans for employees of companies with a check-off agreement with the bank. Customers can borrow up to Kes. 6,000,000 without security.
The quick loan is normally processed within 48 hours to ensure a quick turnaround time. National Bank also provides unsecured SME business loans.
The SME business loan have an interest rate of 13%, a 3% negotiation fee, and a maximum repayment period of 12 months. Customers can borrow up to Kes. 3,000,000 in this arrangement.
Unsecured mobile loans
Kenyan banks also have mobile banking platforms on which they offer unsecured loans. Examples of banks that provide unsecured loans through mobile banking include:
a) KCB Bank
KCB has partnered with Safaricom Mpesa to offer instant unsecured loans to Mpesa customers, even those who are not KCB bank account holders.
b) NCBA Loop
NCBA Loop offers unsecured mobile loans to the app’s subscribers. Loop charges an interest rate of 13.5% on its loans.
c) Absa Bank
Absa Bank Kenya, formerly known as Barclays Bank Kenya offer unsecured loans through the Timiza App, through which users can access loans from as low as Kes. 100 and as much as Kes. 1,000,000.
d) Family Bank
Family Bank also offers unsecured mobile loans. Their Pesapap mobile application provides users an access to loans at an interest rate of 13.5%.
e) Equity Bank
Eazzy 24/7, Equity Banks mobile application, is one of the most popular platforms to access unsecured mobile loans. The loans are however limited to Equity Bank account holders and attract a2% appraisal rate and 10% government tax on the appraisal amount.
f) Cooperative Bank
Co-Operative Bank is yet another top Kenyan bank offering unsecured mobile loans through its MCo–Op cash wallet.
The MCo – Op cash wallet allows users to request, access, and repay loans. The minimum amount that a customer can access is Kes. 100 while the maximum amount is Kes. 200,000.
