Mobile loan providers, including Equity Eazzy Loan, KCB Mobile Loan, and Co-op MCo-op Cash, are currently the most popular digital lending platforms in Kenya.
To get a loan from the digital loan providers, these lenders do not require a guarantor, and the paperwork involved is minimal, with the delivery of the loan being instant.
However, the digital loan lenders differ in terms of loan limits, interest rates, fees charged, and application procedures.
Equity Eazzy Loan Limits and Interest Rates
Eazzy loan offers financial loans to both regular remittance and business customers through the digital Equity bank channels that do not require filling out forms or guarantors.
“Eazzy Loan is an easy loan to get, without the need for guarantors or filled-out forms. accessible by both regular remittance and business customers,” Equity Eazzy Loan guideline states.
However, to qualify for the loan, one must have an active Equity Bank account that has been in use for the past 6 months.
The applicant must also have an active Equitel Line or EazzyApp, and channel their income through the active accounts to establish high credit limits.
Equity Eazzy loan amounts range from KSh 100 to KSh 3,000,000 and are available for payment in monthly or multiple monthly installments.
Upon application, the funds from the Equity bank are instantly wired to the applicant’s account, which will be charged to the loan being applied for under the product and service tariff guide.
Interest rates on the loan range from 2% to 10% per month on a short-term basis, or up to 11% to 15% annualized, resulting in a total cost of credit of 19% to 21% in the first year, including the fee.
An additional approximately 1% processing fee, which covers the recoverable upfront and 20% excise duty, is charged on the loan.
How to Apply for Eazzy Loan
To acquire an Eazzy Loan through the Equitel line, an applicant should visit the Equitel menu and select the ‘My Money’ option.
Afterward, the applicant should select the loan option, review the available options, and ensure they have selected their loan type.
Further applicants are required during the application to select the account for the loan, the amount, and confirm their details, and finalize by entering their PIN.
For applicants using the Equity mobile app, one has to link the Equity account, select borrow, get a loan, and select the loan type as well as the amount.
Alternatively, potential loan applicants can use the Equitel USSD *247# and select the same as those using the app.
Also Read: Equity Bank Explains How a Customer Lost Money from Her Account
KCB Mobile Loan
As a digital mobile loan lender, KCB mobile loan stands out for offering short-term borrowing and competitive pricing on short tenors.
KCB customers can choose a tenor period the requesting a KCB mobile loan, ranging from 1 day to 12 months.
Loan limits for the KCB mobile loans range from KSh 1,001 up to KSh 300,000, with high activity accounts with high salary income having a limit of up to KSh 1,000,000.
Loans that require repayment within 1 to 30 days have an imposed interest rate as low as 1.2%.
In addition, a 20% of the excise duty as well as a processing fee is also charged on the loans lent to customers, earning Simba points upon borrowing loans.
To be eligible for the loan, a loan applicant must have an active KCB account for 6 months, be registered on the KCB app, and have a positive credit history.
KCB Loan Application
To apply, eligible KCB borrowers are required to dial the KCB USSD code *522# and launch the KCB app registration.
After a successful launch, applicants need to select loan options and request a loan, ensuring they enter the amount and preferred tenor, and review the terms and conditions of the loan.
Additionally, the applicants are required to confirm the details and enter their PIN, with the funds being charged instantly to their accounts upon confirmation.
Co-op MCo-op Cash Loan
Salary earners mostly prefer the Co-op MCo-op Cash Loan for its predictable upfront deductions and reliability.
Eligibility requirements state that to obtain an MCop-op Cash loan, one must have a salary credited to a Co-op account for at least 1 month.
For active businesses, the transactions must be registered on the MCop-op cash for over a month.
The tenor for the Co-op loans ranges from 1 to 3 months for salary loans, while that of businesses is set at up to 6 months.
An upfront deduction of 8% is made in the first month, 10% in the second, and 12% in the third.
However, during the third month, a 0.0034% insurance deduction and a 20% excise duty are deducted, with business loans carrying a potential 3% appraisal fee and interest.
Also Read: KBA Survey Shows Mobile Banking Tops Customer Preferences in Kenya
Co-op MCo-op Cash Loan Application
To apply for the Co-op MCo-op Cash loan, eligible applicants can use the USSD code *667# or the MCo-op Cash app.
Upon activation, the applicant is required to select E-loan and check the loan limit they can borrow from the lender.
If the limit allows the applicant to get a loan, the applicant should choose the loan type, either salary or business, and enter the amount to borrow.
In addition, the applicant should review the deductions that will be applied to the loan and confirm by entering the PIN that the funds are being remitted to Co-op accounts or M-Pesa.
Mobile Loan Comparison
| Features | Equity Eazzy Loan
|
KCB Mobile Loan
|
Co-op MCo-op Cash
|
| Loan Limit | KSh 100-KSh 3,000,000 | KSh 1,001-KSh 1,000,000 | KSh 1,000-500,000 for Salary
KSh 1,000,000 for business |
| Payment Tenor | 1 to 24 months | 1 day to 12 months | 1 to 3 months(Salary),6 months(business) |
| Interest Fee | 11–15% interest with 1% appraisal and excise fee
|
1.2 % interest that is risk-based | 8 to 12 % flat insurance and excise fee |
| Advantage | Long-term loans for large amounts | Short-term loans | Salary earners with predictable costs. |
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