This is a simple guide on how to get a loan through the KCB Mpesa service as of 2020. 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.
Please note that once cleared from CRB, you will not be able to access any KCB mobile loan for 60 months.