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The Easiest Loans to Get In Kenya
The Easiest Loans to Get In Kenya
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Money Management

The Easiest Loans to Get In Kenya

Money254
Sheila Brenda Andoi
October 21, 2022

Emergencies, such as unexpected medical expenses and other incidents that require money fast can come at any time. Some are expected, while others are utterly unexpected. And if you don't plan ahead of time, they might drastically impair your financial situation.

When you do not have the cash to sort out these pressing needs, you may need to get a loan as you rearrange your finances. Obtaining a loan that does not require a lot of paperwork and lengthy application periods is what you may be looking for.

You don’t want your spouse to be waiting in the hospital lobby for hours before you can raise the cash for that crucial CT scan or entertain the prospect of losing that electronics supply deal just because you are not very liquid at the moment.  

When comparing loans for funds in less than one working day, use comparison tools like Money254 to do your research. Key features such as interest rates, fees, loan amounts, term lengths, late penalties, interest structure, and disbursement method have all been considered.

Characteristics of Easy Loans

  • Instant Disbursement: funds will be deposited to your account as soon as you are approved.
  • Minimal Processing Time: these types of loans take less time to process. They range between a few minutes to 24 hours.
  • Paperless Approval: When applying for loans, you may be required to provide the lender with certain documentation. Your loan application will subsequently be processed by the lender. In contrast, when you apply for easy loans, all of your supporting documents only need to be uploaded or sent via email resulting in an entirely paperless process. Furthermore, if you are a pre-approved customer, you will only be required to submit little information.
  • Lower Credit Score Allowed - This means you'll be able to get a loan even if your credit score is low.

If this sounds like something you'd like to learn more about, here are some of the easiest loans to obtain in Kenya.

1. Digital Loans

Digital lenders are another lending alternative for those in need of an easy cash injection. Most application processes for these loans are simple and take less than 5 minutes to complete. Approval decisions can be made in a matter of minutes as well, and cash is typically disbursed in a very short time if you qualify.

However, keep in mind that your credit score will have an impact on whether or not you qualify and how much you qualify for - and for some lenders, also determine the interest rate charged. In light of this, strive to repay your loans on time in order to build a good credit score. Also, make sure that you select the ideal lender for you.

2. Shylock Loans

This is also undoubtedly the easiest type of loan to obtain. All you need to guarantee or secure your loan is a valued object, some form of identification, and a bank account for direct deposit. 

One of the most significant hazards and reasons why shylocks have such a negative reputation is the very high rate of collateral loss when you default, with very few options for renegotiation or extension.

To be safe when dealing with this type of loan, ensure that before you sign on the dotted line and take your receipt, always read the fine print. A shylock might also not be the best source of capital for an emergency and before you consider them ensure that you try other means of financing.

3. Payday Loans

Payday loans are typically offered informally by small-scale lenders who expect you to pay back in about 30 days or when your next paycheck is due, whichever is shorter. 

Unlike other similar-structured loans such as shylock or loan on items loans, payday loans can be unsecured. What therefore makes payday loans simple to obtain? To begin with, the vast majority of payday lenders do not consider credit history or credit score. 

Most payday loans usually have very high-interest rates and short payback durations, so, even if you need money right away, carefully consider your options before asking for this type of loan.

The key to obtaining a payday loan is to only borrow just the amount you can afford to repay within the period of receiving your paycheck.

4. Emergency Loans

These are unsecured personal loans that can help you pay for unforeseen costs if you don't have a safety net. They are ideal for those with good credit ratings offered by formal institutions such as Banks and Saccos. 

Emergency loans often allow you to borrow more money than other instant cash options, such as payday loans. You will also have more time to repay a personal unsecured loan with flexible installments that work for you. Borrowers often have a few months to a couple of years to repay the loan plus interest.

>>>> Compare Personal Loans in Kenya here.

5. Chama Loans

Chamas, also known as micro-savings or investment clubs, are more popular than ever as one of the cheapest, safest, and quickest ways to acquire easy cash. A Chama is often organized in the form of a merry-go-round, with each member donating a set amount on a monthly, weekly, or even daily basis. The funds are then distributed to each member in turn. 

Almost all chamas feature a provision for emergency borrowing. Chama loans can become accessible in the case of emergencies such as school expenses, a sick parent or child, or in the event of death. 

Unlike other banking institutions, where an emergency loan may be quite expensive and may take lots of processes and time to be granted depending on the amount, Chamas will frequently get you settled easily.

6. Salary Advance Loans

When your employer agrees to give you a portion or the full amount of a future paycheck ahead of your regular payday, this is known as a salary advance.  Each employer has a different approach to dealing with salary advances.

Salary advance loans are almost identical to payday loans, however, the main distinction between the two is who is that salary advances are offered in two ways;

  • By your employer - in most cases, no interest is charged on this loan. It allows you to borrow money using your next paycheck. In essence, you get paid in advance.
  • By Financial institution (Bank/Sacco) where your salary is usually processed - here, there is interest and there may be a need for MoU between your employer and the institution or not depending on the lender. 

7.  Logbook Loans

A logbook loan is a kind of loan that uses your automobile, van, tractor, or motorcycle as collateral. It enables you to borrow a predetermined sum from the lender against the value of your vehicle. In exchange, the car is temporarily placed into joint ownership with the lender until the loan plus interest is entirely repaid.

Since the logbook of your car would be used as security, if you fail to repay the loan by the due date, the lender has the legal right to repossess and sell your vehicle. 

>>>> Compare Logbook Loans in Kenya 

8. Loans from Friends and Family

A strong family and friends network is not always just for get-togethers or parties.  Borrowing money from a close friend or family member if possible could be a straightforward solution to pay for an unforeseen need.

Recognise the danger of jeopardising or changing your relationship with them if you fail to repay them. Put everything in writing to guarantee that you and your friend or family are on the same page.

Read Also: Money and Friends: How to Lend to a Friend

9. Credit Card Cash Advance

Credit card cash advances are withdrawals from your credit card account. So, how does it work? Here's how; you use your credit card to withdraw cash from an ATM or bank. There is no need for a credit check because the transaction is initiated by the credit card company.

However, unlike a debit card withdrawal, you are not spending your own money. When you acquire a cash advance, your credit card company lends you money and charges your account. A transaction fee and an interest rate are included in the costs. There is also a limit to how much money you can withdraw. Make sure not to go over that limit! 

>>>> Compare Kenya’s Top Credit Cards

WRAPPING UP

If you're in a financial jam, there are a few loan options available that can be used for a variety of purposes. They may also assist you in covering unexpected costs or purchasing products that you would not be able to afford otherwise. Take the time to investigate your options to find the best solution for your situation. Make sure you can repay the loan on time to avoid stress.

Sheila Brenda Andoi is a communicator, journalist, editor, and writer passionate about human-interest stories. You can find her on Twitter @sheilaandoi

Learn more about Personal Loans available in Kenya on Money254

Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.

Instantly search loan products from established providers in Kenya and compare on the terms that matter most to you.
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