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Umba: Are you a Car Owner Looking for a Loan of Up to Ksh1 Million?
Umba: Are you a Car Owner Looking for a Loan of Up to Ksh1 Million?
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Umba: Are you a Car Owner Looking for a Loan of Up to Ksh1 Million?

Tony Mukere
July 14, 2023

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

It is now possible to apply for the Umba Logbook loan on, Kenya’s premier financial comparison platform. 

Umba is a microfinance bank regulated by the Central Bank of Kenya (CBK) and has a logbook loan of up to Ksh1 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.


To qualify for the Umba logbook loan, you must own a car that is not older than 15 years. As of 2023, you must have a car whose year of manufacture is 2008 and below (2008-2023). 

The amount you can borrow under the Umba logbook loan is also pegged on the value of your car. Umba finances up to 50% 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 Ksh350,000 i.e. up to 50% 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 
  • Have positive Credit Reference Bureau (CRB) status
  • The car must be registered for personal use (PSVs and commercial vehicles do not qualify)

The interest rate for the Logbook loan starts at 2.49% 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). 

The minimum tenure is 3 months while the maximum is two years (24 months). 

There are three loan tenures to choose from:

  • 12 months
  • 18 months 
  • 24 months 

The 12-month loan tenure applies to all logbook loans that have a term of 3 and 12 months. The applicable rate for this loan is 2.99%. 

The 18-month tenure includes all loans where the repayment period is between 13 and 18 months. The applicable interest rate is 2.75%. 

For loans that have a tenure of 19-24 months, the applicable rate is 2.49%. 

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

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

On the next page, you will find the Money254 application form where you will be requested to provide standard information that allows Money254 to fasten your application. 

A Money254 agent will call you back instantly to provide you with a detailed quote on the Umba logbook loan and offer advice on the application process. After this, a relationship officer from Umba Microfinance Bank will contact you to complete the process which also includes opening an Umba Microfinance Bank account where your loan money will be deposited. 

Once your loan is disbursed, you will get a Ksh2,000 cash bonus for using the Money254 platform in your application process.

Note that Money254 is not a lender. Money254 is Kenya’s first fully integrated financial marketplace that is helping Kenyans find the financial products that best meet their needs. 

This service is offered to all Money254 users at zero cost. Learn more about Money254. 

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Mukere is a digital journalist based in Nairobi. He is passionate about writing and shaping stories that make the world a better place. Connect with Mukere on LinkedIn.

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