KCB M-Pesa Loan is a type of unsecured personal loan that is disbursed without relying on the borrower’s assets for security. KCB M-Pesa loans are approved based on the borrower’s creditworthiness. Therefore, these types of personal loans are easy, fast, and instant to apply for and get approved for because they do not require any collateral or paperwork. KCB M-Pesa Loan Account is a micro-credit product that allows a borrower to borrow money in times of need and to complement savings towards an investment or enterprise
KCB M-Pesa loans are emergency loans that can be used for personal uses such as home improvement, small business expansion, medical expenses, debt consolidation, and other personal expenses. KCB M-Pesa is a mobile banking lender that uses machine learning systems to understand a customer’s financial capacity. The machine learning system uses data from the user’s devices to check and calculate the credit limit.
KCB M-Pesa Loans operates by underwriting and disbursing loans to borrowers based on their ability to pay. KCB M-Pesa checks user’s credit history and transaction history with M-Pesa. During the registration process, KCB M-Pesa reviews the borrower’s personal details, such as monthly income, residential area, and household. The data collected by the mobile service provider (Safaricom) is used to create a customer profile.
Below is a summary table for the KCB M-Pesa loan features, such as interest rate charged on the loan, loan amount, credit limit, annual percentage rate (APR), loan repayment terms, origination fees and processing fees and charges, loan disbursement method, speed, the eligibility criteria of the KCB M-Pesa loan, the pay bill number, contact details, loan purpose, and the approval process. All these concepts are important to understand before applying for any personal or unsecured loans.
| Feature | Details |
|---|---|
| Loan Type | Unsecured Personal loan |
| KCB M-Pesa USSD code | *234# or *334# |
| Loan term | The shortest duration is 7 day, and the longest is 30 days. |
| Loan Disbursement decision | It takes less than 5 minutes to get the loan. |
| KCB M-Pesa loan Interest rate Range | The interest ranges between 7.5% to 9.103% and 1.5% excise duty tax for 30 days |
| Processing Fee Range | 0% |
| KCB M-Pesa Loan Limit Range | ranges from KSh 50 to KSh 1,000,000 |
| KCB M-Pesa Customer Care Contacts | Telephone: +254 (711) 087001, +254732187000, +254202287001 SMS: 22522 WhatsApp: +254711087087 Email: [email protected] or [email protected] |
| Max Effective APR | Minimum 7.5% p.a. to Maximum 9.103% p.a |
| KCB M-Pesa Paybill No. | 522559 |
Unsecured personal loans often come with higher interest rates and additional fees compared to secured loans.
Activating KCB M-Pesa loan involves opting into the loan services. The activation of the KCB M-Pesa account involves accessing the loan products and the KCB M-Pesa saving services. The process also involves creating a customer profile with KCB Bank by sharing your personal details with the bank behind the loan service.
To activate KCB M-Pesa loan, go to your M-Pesa menu, select “My account” and “Update Customer menu,” then go to your M-PESA menu, select Loans and Savings, KCB M-Pesa, click on activate account, and accept the terms and conditions.
To activate the KCB M-Pesa loan limit, follow these suggestions below:
Is KCB M-Pesa a legit loan?
Yes, KCB M-Pesa is a legitimate micro-credit that is regulated and controlled by Safaricom PlC in Partnership with KCB Bank. The lender disburses quick and easy loans to borrowers without collateral.
Why is my KCB M-Pesa account not activating?
There are three main reasons why your KCB M-Pesa account is not activating. One reason is that your line is new and needs to be activated first. Secondly, your Safaricom customer registration process is underway. Therefore, you will need to wait for some time. The third reason is that customers registered using passport numbers won’t be able to activate KCB M-Pesa accounts. If the activation declines completely, call 100 (free) or +254 722 002100 (chargeable) or 200 (free) or +254 722 002200 (chargeable).
Opting out of KCB M-Pesa involves deactivating and deleting the KCB M-Pesa account. To opt out of KCB M-Pesa and delete your account completely, visit the nearest KCB bank branch and fill out the account closure form, or visit a Safaricom shop and fill out an account closure form. If you want to proceed with deactivating and deleting your KCB M-Pesa account, ensure that all outstanding loan balances are settled before requesting account closure.
Can you deactivate KCB M-Pesa account via M-Pesa?
No, you can not directly deactivate your KCB M-Pesa account through M-pesa. To deactivate your account, visit nearest KCB Bank customer care centre to proceed with account closure.
There are two ways you can access KCB M-Pesa loan. One way is to use the M-Pesa menu through the Sim Toolkit app, while the other way is to use a USSD code. All these methods are shown below.
To get a loan from KCB M-Pesa, follow these steps:
How to get KCB M-Pesa loan via USSD
If you are unable to access the KCB M-Pesa loan from the STK (Sim Toolkit), follow these steps below:
KCB M-Pesa loan cancellation involves stopping the loan application process. A customer does not have to cancel a loan application under the following circumstances:
To cancel a KCB M-Pesa loan application, one should do nothing, and the loan cancellation will be processed automatically.
The KCB M-Pesa interest rate involves the charges a borrower has to incur for borrowing the loan. Loan fees are charges the borrower needs to incur before the loan is disbursed. There are three fees you will incur when applying for a loan from KCB M-Pesa. The roller-over fee, negotiation fee, and the facility fee. Other minor charges include 1.5% excise duty tax, which is included in the facility fee, and M-Pesa withdrawal charges if you intend to withdraw your loan amount or charges for sending the loan amount to another financial institution.
According to KCB M-Pesa terms and conditions, the interest rate for KCB M-Pesa loans is currently between a minimum of 0.6% and a maximum of 0.74% per month. Additionally, there is a 1.5% excise duty.
According to KCB M-Pesa loan terms and conditions, the daily interest rate for KCB M-Pesa loans is currently between a minimum of 0.02% and a maximum of 0.024%. Additionally, there is a 1.5% excise duty.
When applying for a personal loan with a lender, fees and charges should be determined and analyzed. The fees that a borrower might incur during a loan process include the following: processing fees, prepayment charges, late payment penalties, documentation charges, insurance charges, loan cancellation charges, underwriting fees, origination fees, service fees, and tax-related fees on the personal loan disbursed. When processing an KCB M-Pesa, the following fees will be charged:
| Types of Fees | Interest charged |
|---|---|
| Roll-over fee | The roll-over fee is 7.5% |
| Underwriting fee | No Underwriting fees |
| late payment Fees | The penalty upon default is 10% of the outstanding amount charged on monthly basis |
| Negotiation fee | 15.11. The Customer loan will be issued net of interest and negotiation fees calculated at a rate of 2.5% of the amount borrowed. |
| Loan Repayment Period | Interest Rate | Facilitation Fee Rate | Total Fee |
|---|---|---|---|
| 7 days | 0% | 9% | 9% |
| 14 days | 0% | 9% | 9% |
| 21 days | 0% | 12% | 12% |
| 30 days | 0% | 15% | 15% |
Eligibility criteria refer to a set of predefined standards or requirements that a borrower must meet to be considered for a particular loan. These criteria are used to determine who is qualified or suitable to get approved for the loan. For KCB M-Pesa loan offers, the eligibility criteria can vary widely depending on the context and can include factors such as income, age, transaction history, and credit score. These requirements involve the qualifications a borrower must meet to get a KCB M-Pesa loan.
Borrowers applying for KCB M-Pesa loans for the first time must check the prequalification and ensure they provide the right details. Under item 15 of KCB M-Pesa loan terms and conditions, here are the prequalifications of borrowing a Kcb M-Pesa loan:
KCB M-Pesa loan limit is the credit amount the micro-credit lender can disburse based on the regulated terms and conditions of the product. The loan limit KCB M-Pesa can disburse ranges from Kes 50 to a maximum of Kes 1,000,000.
First-time loans at KCB M-Pesa ranges from Kes 500 to Kes 2000. However, the first-time loan at KCB M-Pesa varies depending on the creditworthiness of the borrower. This means that first-time applicants may not be eligible for higher loan limits or none because of their poor credit score.
A loan limit review cycle is a periodic process undertaken by a lending institution to reassess the maximum loan amount it is willing to extend to borrowers. This review typically occurs at predetermined intervals, such as annually or quarterly. The limit review cycle for KCB M-Pesa loan takes around every 90 days for new credit limits to be assigned to borrowers.
There are three main reasons your KCB M-Pesa loan limit is zero. One main reason is that you are a new customer; hence, new customers need to be active for 6 months before new limits are assigned. The second reason why KCB M-Pesa loan limit is zero is because the limit review cycle, which takes 90 days, has not been processed. The third major reason is because you have defaulted on the outstanding KCB M-Pesa loan balance for more than 90 days (3 months).
To ensure that limit does stay at zero, increase your transaction history, by saving more on your KCB M-Pesa account within the 90 days before the review takes place. Additionally, avoid defaulting on outstanding loan balances. To understand more about limit increment read this document.
Why is KCB M-Pesa not giving me a loan? According to KCB M-Pesa terms on loans under item 15. KCB M-Pesa is not giving you a loan because of the following six reasons;
To ensure that you are eligible for the loan you will have to be an active M-PESA user for at least 6 months, save regularly on KCB M-Pesa account and continuously use other Safaricom services such as Voice, DATA and M-PESA.
KCB M-Pesa loan repayment involves the process of paying back money borrowed from a lender according to the terms agreed upon in a loan contract. This process involves a series of regular payments, often monthly, that cover both the principal amount (the original sum borrowed) and interest (the cost of borrowing the money). Loan repayment methods refer to the various strategies and schedules borrowers use to repay their KCB M-Pesa loans. Below is a list of ways to pay your KCB M-Pesa loan balance:
Can I borrow immediately after paying KCB M-Pesa?
Yes, you can instantly request another loan on the KCB M-Pesa menu after you finish paying an outstanding loan. Ensure you were within a positive listing and not a negative listing. A KCB M-Pesa user reports that being negatively listed increases the chances of being denied a loan after full repayment. According to KCB M-Pesa terms ensure you are in the positive listing and you are paying loan on time to increase the chance of getting a loan immediately after full repayment.
Fuliza Loan and KCB M-Pesa Loan are two different micro-loan products. KCB M-Pesa is a banking service that can be accessed through a mobile phone. KCB M-Pesa offers two types of services, which include short-term loan services and savings services. Fuliza on the other hand, is an overdraft loan service that borrower uses to complete a transaction. Fuliza is a short-term soft loan that can be used to consolidate a loan in case you want to default on a personal loan.
Can you pay the KCB M-Pesa loan using the Fuliza loan?
Yes. Because Fuliza loan is an overdraft loan that is disbursed through completing an M-Pesa transaction. Therefore, if you want to pay KCB loan using Fuliza loan the first step is check your Fuliza loan limit that can be disbursed. Next, Fuliza the loan limit amount to another number find steps to fuliza your loan limit to another user from this document, fuliza loans. Then follow these steps below:
Go to M-PESA menu• Select Lipa na M-PESA• Select Paybill & Enter Business & enter 522559 as Business Number• Select Account no. & enter “Borrower’s ID number e.g. 12345678’’• Enter amount & follow prompts to complete
Can I pay an KCB M-Pesa loan for another lost number?
Yes, to pay KCB M-Pesa loan for another lost number, Go to M-PESA menu• Select Lipa na M-PESA• Select Paybill & Enter Business & enter 522559 as Business Number• Select Account no. & enter “Borrower’s ID number e.g. 12345678’’• Enter amount & follow prompts to complete.
There are two ways to access the loan balance from KCB M-Pesa account. One way is using an KCB M-Pesa menu, and the second way is using the short code *334#. The steps are shown below;
To check the KCB M-Pesa loan balance using KCB M-Pesa menu via M-Pesa, follow these steps: Go to your Safaricom menu and select M-Pesa>>Select “Loans & Savings.”>>Select ‘KCB M-Pesa’ menu and choose ‘LOAN’>>Select ‘Loan Balance.’>>Enter your M-Pesa PIN and press Ok
To check the KCB M-Pesa loan balance using USSD, follow these steps: Dial *334#>>Select “Loans & Savings.”>>Select ‘KCB M-Pesa’>>choose ‘LOAN’>>Select ‘Loan Balance.’>>Enter your M-Pesa PIN and press Send.
KCB M-Pesa Loan default occurs when a borrower fails to meet the legal obligations or conditions of a loan agreement. This typically means that the borrower has not made the required payments on time or has stopped making payments altogether.
Loan default period involves the time when loan repayment expired. This is an overdue date after an outstanding loan balance is failed to be settled by the borrower.
If you default on KCB M-Pesa disbursed credit, you may be contacted by collections agents if you do not repay your loan on time. In the event of a long period of non-payment, you may be blacklisted from KCB M-Pesa credits and reported to the relevant credit reference bureaus.
There are four consequences to face for late repayment on the KCB M-Pesa credit disbursed. The consequences a borrower may face are listed below:
It’s crucial to repay your KCB M-Pesa loan on time to avoid these penalties and maintain a good credit history.
KCB M-Pesa loans typically have a repayment period of 30 days. KCB M-Pesa doesn’t offer formal loan extensions. If you don’t repay the loan within 30 days, the loan is automatically rolled over for another 30 days. For the rollover period, you’ll be charged an additional facilitation fee on the outstanding loan balance. Successive rollovers can lead to a significant increase in the total amount to be repaid due to accumulated facilitation fees. Consistent delays in repayment can negatively impact your credit score, making it difficult to access future loans.
| Loan Repayment Period | Interest Rate | Facilitation Fee Rate | Total Fee |
|---|---|---|---|
| 7 days | 0% | 9% | 9% |
| 14 days | 0% | 9% | 9% |
| 21 days | 0% | 12% | 12% |
| 30 days | 0% | 15% | 15% |
Is there a grace period for KCB M-Pesa loan repayment?
No, there is no formal grace period for KCB M-Pesa loan repayments. The loan repayment period is typically 30 days from the date of disbursement. If not repaid within this period, an additional facilitation fee of 9% to 15% is charged.
What is the interest rate on a defaulted KCB M-Pesa loan?
There is no interest rate on a defaulted KCB M-Pesa loan. Instead of interest, KCB M-Pesa charges a one-time facilitation fee when you take out a loan. This fee is a percentage of the loan amount. Hence, if you default on the loan, you don’t accrue additional interest. However, KCB M-Pesa reports that 10% of the outstanding amount is charged on a monthly basis for borrowers exceeding the 90-day default period.
According to KCB M-Pesa loan terms, there are two types of CRB listings. The Negative listing and the Positive listing. Under each listing, we will discuss what will happen after each listing:
Here’s a comparison table addressing what happens after a KCB M-Pesa CRB listing, differentiating between positive and negative listings:
| Aspect | Positive Listing | Negative Listing |
|---|---|---|
| Applicable Customers | Active KCB M-Pesa customers with no outstanding amount overdue | Active KCB M-Pesa customers with an outstanding amount overdue |
| Repayment Record | Good repayment record with no overdue amounts | Poor repayment record with overdue amounts |
| Impact on Creditworthiness | Enhances creditworthiness | Reduces creditworthiness |
| Risk Profile | Improved risk profile | Higher risk profile |
| Loan Limit Implications | Potential increase in loan limit due to responsible behavior | Possible restriction or reduction in loan limit |
| Lender’s Confidence | Increased confidence in lending to the customer | Decreased confidence in lending to the customer |
Negative credit information, such as defaults, typically remains on your credit report for a set period of 5 years from the last date of payment. During this time, you might be considered “blacklisted” by lenders. Some sources report that the period it takes to get blacklisted takes the period of 7years to 10 years. However, according to Creditinfo, the period it takes for borrowers to get blacklisted is generally 5 years, hence KCB M-Pesa users should note this.
Does KCB M-Pesa report loan defaults to credit bureaus?
Yes, KCB M-Pesa reports loan defaults to credit bureaus.
KCB M-Pesa does report loan defaults to credit bureaus. This means that if you fail to repay your KCB M-Pesa loan within the agreed-upon timeframe, your information could be shared with credit reference bureaus, which can negatively impact your credit score.
Can I negotiate an extended repayment period for a KCB M-Pesa loan?
Unfortunately, as of now, KCB M-Pesa doesn’t offer a formal negotiation process for extending loan repayment periods. The loan terms, including the repayment period, are typically fixed when you accept the loan offer according to what it is stated under terms and conditions.
The maximum loan amount allowed after a KCB M-Pesa credit default is typically significantly reduced.
Here’s a breakdown of how KCB M-Pesa usually handles loan defaults and subsequent loan limits:
CRB Clearance refers to the process of clearing one’s name from the CRB after being listed as a defaulter.
The process of clearing a KCB M-Pesa loan from the Credit Reference Bureau (CRB) is indirect.
The timeframe for clearing a KCB M-Pesa loan from the Credit Reference Bureau (CRB) after full repayment is typically 30 days. However, it’s essential to note that this is a general guideline, and the actual process might vary slightly. Factors like the specific CRB, any system updates, or unforeseen circumstances could influence the exact duration.
To confirm the exact timeframe and for any updates, it’s recommended to contact Safaricom’s customer care or refer to the official KCB M-Pesa terms and conditions.
Are there different criteria for clearing KCB M-Pesa loans based on the loan amount or repayment history?
The criteria for clearing a KCB M-Pesa loan from the Credit Reference Bureau (CRB) are not directly tied to the loan amount or repayment history of a specific loan.
The process involves:
What are the available channels to initiate the KCB M-Pesa loan CRB clearance process?
In Kenya, there are three major CRB agencies (such as Metropol, TransUnion, and CreditInfo). Ensure that your clearance request is processed across all relevant agencies.
Can I clear a KCB M-Pesa loan from the CRB through the M-Pesa platform?
No, you cannot directly clear a KCB M-Pesa loan from the CRB through the M-Pesa platform. While M-Pesa is used to access and repay KCB M-Pesa loans, it doesn’t have the functionality to interact directly with the Credit Reference Bureau (CRB) to remove a negative listing.
Are there any associated fees or charges for clearing a KCB M-Pesa loan from the CRB?
There are no direct fees associated with clearing a KCB M-Pesa loan from the Credit Reference Bureau (CRB).
Once you have fully repaid your KCB M-Pesa loan, the lender (KCB Bank) is obligated to report this positive payment history to the CRB. This process takes 30 to 90 days, but it’s generally a standard procedure that doesn’t incur additional costs to the borrower.
How long does it typically take to see the CRB clearance reflected after initiating the process?
The time it takes to see a CRB clearance reflected after initiating the process can vary. Generally, it can take anywhere from a 30 days to 90 days for the CRB to update your record. Several factors influence this timeframe, including:
What are the legal implications of not clearing a KCB M-Pesa loan from the CRB?
It’s crucial to consult with a legal professional for advice specific to your situation.
KCB M-Pesa loan is a loan product that was launched on March 2015. The micro-lender is owned and operated by KCB bank. KCB loan products are offered to Safaricom users with low credit history with good M-Pesa cash flow. KCB M-Pesa loan product is licensed and regulated by Central Bank of Kenya (CBK). A KCB M-Pesa loan product is a type of unsecured personal loan that offers financial assistance to customers with low cash flow and a low credit history.