News and Analysis
December 13, 2024
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Digital Lender Zenka Finance has made a number of updates to its products in recent months, including a new promotion offering new users interest free loans up to Ksh5,000 for up to 61 days.
Zenka, which was recently feted for deepening financial inclusion in the 2021 Annual Mobile App Awards organised by Vibrant Digital, eliminated the interest rate for their first loan by a new customer that had previously ranged from 9% to 39%. This offer is applicable to all new users of the Zenka App who have not previously taken a loan with the lender.
The ongoing Zenka First Unsecured Loan offer gives first-time Zenka users hard on cash a chance to secure free credit to cater for any holiday-related activities and pay back in a period of up to two months - when their income may have stabilised.
With a minimum loan amount of Ksh500, Zenka is one of the few lenders in Kenya to offer an interest-free loan for first-time customers.
The interest-free loan means that if a customer borrows Ksh5,000, they will only need to repay exactly Ksh5,000 within the 30 - 61 days tenure without any interest, insurance fees or processing fees charged on the amount.
Once the first loan has been repaid, a customer can continue accessing Zenka loans at interest rates of between 9 and 39%.
Zenka has also increased the maximum loan limit for subsequent loans by a customer from Ksh30,000 previously to a high of Ksh42,000.
The tenure for all Zenka loans is up to 61 days.
It is worth noting that the interest rate, loan limit and tenure varies significantly between users based on your financial history.
Full list of Zenka loan updates:
To use the Zenka mobile loan app, you need to own a phone, be 18 years of and above, have a valid national ID, and have a registered Safaricom SIM card with M-PESA activated.
Download the Zenka App from the Google Play store and follow the prompts to register as a new customer.
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Zenka is a mobile loan app offered by Zenka Kenya, a product of Pata Mkopo Company Limited. The mobile app is available both on the Apple Store and the Google Play store, with over 1 million downloads and a 4.0 out of 5 star rating.
Apart from the app, Zenka loans are also accessible via USSD code *841#.
To use the Zenka mobile loan app, you need to own a phone, be 18 years and above, have a valid national ID, and have a registered Safaricom sim card.
Zenka app offers loans ranging from a low of KSh500 to a high of KSh30,000. The loans have a processing fee that ranges between 9-39%. However, if applying via USSD, the maximum limit is KSh10,000. Loan limit increments depend on historical timely repayments.
The maximum effective Annual Percentage Rate (APR) is 180%
However, if you are applying for a loan for the first time on the zenka lending platform, the first loan attracts no processing fee.
There are a number of ways you can grow your loan limit. However the most effective way of doing this is by making sure you repay your loan on time, borrow as often as you can on the app and transact often using m-pesa.
(You need to have already registered for Zenka)
To make repayment, follow the procedure below:
Zenka charges a 1% penalty rate of the amount borrowed (principal) per every day you don’t repay the loan. The amount adds up each day until you pay up the outstanding loan.
Zenka loan platform offers loan extensions at different durations. The fees depend on the duration. So 15% is for (7 days extension), 22% (14 days extension) and 29% (30 days extension) respectively.
Once you have supplied the requirements to receive a loan extension, follow the procedure below:
The zenka member get member (MGM) is a referral program that allows you to invite friends to use the loan app. You do this by recommending zenka to other users by using a unique code.
Your friends will use this unique code when they are registering their own Zenka account. After the friend you invited applies for their 1st loan and repays it in full, you as the person who referred them to use the zenka app, will get a bonus amount in your Zenka account.
The loan app pays out a minimum amount of KSh300 in bonuses accumulated and only if five friends have applied and repaid their loans in full.
Zenka App Privacy and Permissions
“Very quick and helpful once approved. They lend responsibly and never bug you with endless calls and reminders to pay,” says one user on Play Store.
“I paid my loan, twice, and there was no increase in the loan limit. On trying for the third time, I am told I don’t qualify yet I was not late on payments,” opines another user.
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