This is a simple guide on how to get a loan through the KCB Mpesa service as of 2019. KCB Mpesa is a joint initiative of KCB and Safaricom which was launched in March 2015 to provide loans at attractively low-interest rates. The service has been a major success since it’s launch, for instance, loans disbursed through the platform have doubled to Sh20 billion according to a recent report that was made by KCB Group Chief Executive Joshua Oigara.
KCB Mpesa loans have interest rates of 1.12% per month with a one-off negotiation fee of 2.5%. Transfer of money in and out of the KCB M-PESA Account is free which is a major attraction to the service. The cost for the one month loan is 3.62% with excise duty applicable on fees.
Requirements To Have a KCB MPesa Account
You only need to be a registered and active Safaricom M-PESA customer.
How to sign up on KCB Mpesa
1. Go to your Mpesa Menu
2. Select Loans and Savings
3. Select KCB M-PESA and Activate
How To Get A Loan Through KCB Mpesa
After activating your KCB Mpesa account, you will be issued with a loan limit from where you can borrow instantly. Loans issued are deposited into the KCB M-PESA Account. You can access loan limits from as low as Ksh 50 and up to Ksh 1M with a repayment period of 30 days.
It’s good to note that the loan that will be sent to your KCB M-PESA Account will be less the interest, negotiation fee and excise duty which are deducted upfront.
How to Withdraw Money from KCB Mpesa Account
To withdraw your loan to M-PESA follow the following steps.
- Access the KCB M-PESA menu
- Select Withdraw to M-PESA
- Your KCB M-PESA Account will be deducted and your M-PESA Account credited with the amount.
How to increase your KCB Mpesa Loan Limit
1.Increase usage of M-PESA services
2.Increase savings on your KCB M-PESA Account
3. Increase activity on your KCB M-PESA Account by moving money in and out of your Account.
How To Repay KCB Mpesa Loan
You can repay your loan from your KCB M-PESA Account.
- Access the M-PESA menu.
- Select Loans and Savings.
- Select KCB M-PESA.
- Select Pay Loan.
You will be listed with the Credit Reference Bureau (CRB) if you fail to repay your loan.