Umba: Are you a Car Owner Looking for a Loan of Up to Ksh2 Million?

Are you a car owner looking for a quick loan of up to Ksh1 million? You are reading the right article. 

Umba is a microfinance bank regulated by the Central Bank of Kenya (CBK) and has a logbook loan of up to Ksh2 million. The minimum you can borrow is Ksh100,000. 

However, you do not have to have a pre-existing bank account with Umba to qualify for the logbook loan. 

Your car serves as the security for your loan. The specific amount you can borrow is determined by the car you offer as collateral.

Eligibility 

To qualify for the Umba logbook loan, you must own a car that is not older than 15 years. As of 2025, you must have a car whose year of manufacture is 2010 and below. 

The amount you can borrow under the Umba logbook loan is also pegged on the value of your car. Umba finances up to 70% of the car’s forced sale value. 

The forced sale value of your car is different from the market value of the car. The forced sale value refers to the amount your car would fetch if it was subject to a quick sale, say a distress sale. The forced sale value varies depending on the car model but typically averages 60-75% of the car’s market value. 

For example, a market valuation for your car could be Ksh1 million, and the forced sale value could be Ksh700,000 - meaning the maximum loan amount you can qualify for with Umba Logbook Loans would be Ksh490,000 i.e. up to 70% financing. 

Other Qualifying Factors

Beyond the vehicle type, the Umba logbook loan requires you to meet the following criteria: 

• Have the logbook registered in your name 
• The car must be registered for personal use (PSVs and commercial vehicles do not qualify)

The interest rate for the Logbook loan starts at 2.5% per month. This rate, however, may vary depending on the loan tenure (the time from when you receive your loan and the last payment you make). 

Other Charges

Beyond the interest rate, other costs associated with the Umba logbook loan are as follows: 

1. Processing fee (2.5%)

The processing fee is calculated against the disbursed amount. For example, a Ksh100,000 loan will have a processing fee of Ksh2,500. 

The processing fee is capitalised, meaning it is added to your outstanding loan. For instance, in the example above, your outstanding loan becomes 102,500 - although you will receive Ksh100,000. 

2. Credit Life Insurance Fee (1.75%)

The credit life insurance fee is used to take an insurance cover that applies in the unfortunate event of the untimely death of the borrower, the outstanding loan balance is paid. 

In the example above of a Ksh100,000 logbook loan, the credit life insurance fee would be Ksh1,750. This amount is also capitalised (added to your outstanding loan balance). 

3. Valuation Fee (Ksh2,500)

Umba charges a Ksh2,500 upfront fee when you apply for a logbook loan. This fee is meant to cater for the car’s valuation. Importantly, the valuation fee is refunded in full after you have qualified and received the Umba logbook loan. 

It is important to note that the Umba logbook loan has some of the lowest additional fees in the Kenyan logbook loans market. Successful applicants only pay for the credit life insurance and the processing fee. 

The Umba loan does not carry any disbursement, car tracker, NTSA logbook in-charge, or discharge fees - as is common with majority of providers in this market. 

For perspective, these are the charges that Umba offsets from the client: 

• NTSA in-charge (transferring the logbook to reflect joint ownership) - Ksh1,175
• NTSA Discharge (Transferring the Logbook loan back to you after clearing the loan - Ksh1,175
• Tracker Fee: (Ksh15,000 for 12 month loan, Ksh17,500 for 18 months, and Ksh20,000 for 24 months)
• Logbook search - Ksh600
• Chattel Fee - Ksh2,000

How to Apply for the Umba Logbook Loan on Money254.co.ke

You can now apply for the Umba logbook loan on Money254.co.ke. To get started, click on this link