In this era when the mobile loans are leading in the financing of remote customers, no serious financial investor can afford to overlook. And this, is perhaps why Kenya Commercial Bank (KCB) came up with one of their own mobile loans product – the KCB Mpesa loan.
Those who are Mpesa customers and have used this product can attest to the fact that it’s one of the best loans offers out there. Forget the exploiters and opportunists who hide in giving loans but extract huge interests from the borrowers.
KCB Mpesa loans are such easy to get as long as your application is successful. The money is deposited in your KCB mpesa account where you can transfer to mpesa for withdrawal.
With that said, the name, KCB Mpesa can be a bit confusing. Because it combines two players (KCB and Safaricom). Nevertheless, do not worry, it has taken many people a while to understand what it means.
On that note, let us find out what this is.
What is KCB Mpesa Loan.
The KCB Mpesa loan is a mobile loan product that came into being as a result of the partnership between Kenya Commercial Bank and Safaricom. This mobile loan is available to all Safaricom customers.
It’s an instant loan with some of the lowest interest rates; just 1.16 percent per month. You will also be required to pay a one-time negotiation fee of 2.5 percent of the loan.
One can borrow a minimum of KES 50 and a maximum of KES 1 Million.
Once you submit your loan application, it takes very less time and the loan is right into your KCB mpesa account. From this account, you can now transfer the money to your Mpesa account before withdrawing at Mpesa agents.
Other than the loans, you can as well save on KCB Mpesa. There are two different accounts that you can definitely choose.
The first is the Fixed Deposit Account and the other is the Target Savings Account. The interest you earn from these savings is up to 7 percent per annum.
Key Features of the KCB Mpesa Loan.
1. Top-Up Your Loan
This service allows you to request for KCB Mpesa soft loan more than once on the loan limit set for you. Which in essence shows that you can top up your loan several times.
2. Rollover
A rollover means that rather than paying your loan in the initial one-month period, it can be rolled over to the next month so that you have an ample time to pay for your loan without too much pressure on you.
In the rollover, you are basically allowed to pay back your loan in 60 days.
3. Target Savings Account
The KCB Mpesa target savings account gives you an opportunity to set a target for the amount you want to save. You will be making deposits for the purpose of reaching that target.
Here is how this works in a trice.
- Go to Mpesa Menu
- Select Loans and Savings
- Select KCB Mpesa
- Choose Fixed Savings Account
- Select Target Savings Account
- Pick Open Account
- Select source of funds; whether you want to draw it from Mpesa of KCB Mpesa account.
- Enter the target amount you intend to save during that selected period. This has to a 1000 bob and more.
- Then next enter the period; could 1, 3, 6, or 12 months.
- Remember to enter an initial deposit amount, say 50 bob.
- Input your Mpesa PIN and send the transaction.
- You will receive a Mpesa confirmation
Here are the Benefits of the Targets Savings Account
When you open this account, you will be able to deposit money continuously until the target is achieved. And, you use either the Mpesa or your KCB Mpesa account to make the top ups.
The flexibility of the time period you want to save is quite attractive. It’s not that too long to make one lose patience – for example, the target periods include 1,3,6, and 12 months.
While you continue saving, there’s a cumulative interest on your money. Which means that you will never withdraw the same amount but rather a higher amount than what you invested before.
You may have saved with other schemes but realized how strict and rigid those were when perhaps it came to making premature withdrawals. It could be easy to attract early withdrawal penalties – this is not the KCB Mpesa loan principle.
Instead, your decision is treated with respect and you are given your money with interest accrued to the point when you make the withdrawal. With a minimum target period of one month, you can’t think better about this arrangement.
Last, looking at the interest rates, they are quite the deal. This account can attract interests on your initial amount of up to 6.3 percent all year round.
4. Fixed Savings Account
Unlike the target account, the Fixed Savings Account is the one which holds your specific amount of money for a period of up to 12 months.
Simply put, you will save your money and forget until after 12 months or even more.
To save your money here, follow the following procedure:
- Go to the Mpesa Menu
- Select Loans and Savings – KCB Mpesa
- Select Fixed Savings Account
- Choose Fixed Deposit
- Open Account
- Select whether you want to take the money from Mpesa or KCB Mpesa
- Enter the amount which should be more than KES 500
- Enter the period i.e. 1, 3,6 or 12 months
- Key in your Mpesa Pin and confirm the transaction
- You will receive a mpesa confirmation.
Advantages of the Fixed Savings Account
You can opt for early or premature redemption. And there aren’t dire consequences except that you will forfeit all interest accrued – any way that interest wasn’t your money after all.
Upon requesting for a cashback, it doesn’t take long before money is returned back into your KCB Mpesa account.
All the four features highlighted above are key when it comes to getting KCB Mpesa loan.
KCB Mpesa Loan: How to Register, Sign Up and Get a Loan.
This is the process of registering to the KCB Mpesa loan:
- On the Mpesa menu, select Loans, and Savings
- Click on the KCB Mpesa and Activate
- With a successful activation, you will be given a loan limit. This is based on your financial status and credibility
- If you want, apply for the loan instantly and it will be deposited into your KCB mpesa account
- Withdraw the money to your Mpesa and then from the Mpesa Agents
Note that to transfer the money from a KCB mpesa account to the Mpesa account is free of charge.
Basic Requirements to Access KCB Mpesa Loans.
While it is very simplified to get a loan from KCB Mpesa, there are certain minimum conditions that an individual has to make the cut before they access the loan.
For example:
- Your creditworthiness must be proved. If you are listed with the Credit Reference Bureau, you stand zero chance of getting a KCB mpesa loan.
- Your Safaricom line must have been in use for the last 6 months prior to the date of applying for the loan.
- The KCB Mpesa loan calculator figures out what amount an individual is eligible to get based on the cash flow cycles of your Mpesa account.
- Accept the terms and conditions of the loan. The loans, as you know, attract interest rates and operational charges.
KCB Mpesa Loan Repayment.
You may repay the full amount before the repayment period expires. But also, you can pay the money in small installments up to the last day of repayment.
Repayments are made through the KCB Mpesa or mpesa accounts. Which means that you can send money from Mpesa to the KCB account and make the payment.
Alternatively, just pay directly from Mpesa without moving the money to the KCB Mpesa account.
Make sure that you repay the loan on time. This makes you have a positive record with the facility and it’s a platform for higher loan limits in the future.
Also, late payment comes with its own drawbacks. For example, being negatively listed with the CRB is a lifetime killer for your personal development.
You similarly don’t want to pay a loan with extra charges attached on it.
KCB Mpesa Customer Care and Contacts.
In case you have a query, concern or recommendation to make, you can contact KCB Mpesa through the following channels:
KenCom, Moi Avenue, Nairobi Kenya
Phone: +254 20 3270000
Email Address: contactcentre@kcb.co.ke
Postal Address: P.O. Box 66827 – 00800 Nairobi
Customer Care Contacts:
Telephone: +254 20 3270000
Mobile: 0711 087000. 0732 187000
SMS Service: 22522
Also, find them online:
Website: KCB Mpesa Loan
Facebook: @kcbgroup
Twitter: @KCBGroup
Frequently Asked Questions.
How do I check for my loan limit?
Go to the Mpesa menu and select Loans and Savings and choose the KCB MPESA option. Then you will select the Loan option and Request Check Loan Limit button.
Your loan limit will be sent through an SMS.
What are some of the reasons why I cannot access a KCB Mpesa loan?
- Being listed with Credit Reference Bureau
- You already have an existing loan with the KCB Mpesa loan
- Your Credit Score is low
How do I grow my loan limit?
First, increase the activity on your KCB mpesa account. Do this by ensuring that there is a continuous flow of money from time to time on this account.
You can also increase your savings on the KCB mpesa account. The last one, use Mpesa service regularly.
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In Conclusion
Many people are benefiting from the KCB Mpesa loan. It is a product that is touching millions of Kenyans across the country.
Given that the loan can be accessed right on the Mpesa menu, even the unbanked population without internet-enabled smartphones can access the loans with just the press of a Mpesa menu button.
The most exciting features of this mobile loan include the rollover, the newly updated top-up option, the target and fixed savings accounts that also instill a culture of saving among borrowers.
KCB mpesa loan is indeed a true inspiration to the development of the economy of Kenya. Which is why you need to make your move today and apply for a loan with KCB mpesa.