Payday loans are short term ‘low interest’ loans whereby the person lending the money allocates loans with high interest in-regards to the borrower’s income and credit profile. Payday loans are issued the same day an applicant applies for them.
The following are the qualification necessary to qualify for Payday Loans;
- An applicant must have attained the minimum age of 18 years
- An applicant should have an operating M-pesa account
- An applicant must have a Kenyan Identification Card [ID]
-In some occasions a payday loan lender may require you to have a Facebook page to be used for identification purposes.
The procedure on how to acquire Payday loans in Kenya;
- Start by downloading the Mobile App of the Payday Loan lender company
- Proceed to ‘Sign up’
- Then provide your own personal information e.g. Email address, Identity Number etc.
- Then proceed to register
- You can then apply for a loan
- Incase the loan is approved; the applicant will receive the loan by means of the M-pesa Account
-The applicant will be instructed by the Payday money lender on how to pay back the loan he/she has been granted
The following are the various types of Payday Loans provisions in Kenya;
It issues Payday Loans to an applicant by the means of mobile phone. The amount granted ranges from as low as KES 1,000 to KES 20,000. The interest charged ranges from 5.7% to 20.5%. The time allocated for paying back the loan is 30 days.
- Meridian Acceptances
It issues Payday Loans by using an applicant Vehicle Log books as insurance. This generally means one can only procure a loan based on the value of the vehicle. The amount in most cases is about KES 300,000. The interest charged is as low as 5% going up. The time allocated for paying back the loan is 30 days
The amount of Payday Loans granted is based on how much an applicant saves in the M-Shwari account. The maximum amount issued is KES 100,00. The interest charged ranges from 7.5%. The time allocated for paying back the loan is 30 days.
- Loans on Items Providers
The amount of Payday Loans issued depend on the value of item the loan is against e.g. phones or electrics. The minimum amount of loan granted is KES 500. The interest charged is 30% per week compounded interest. The time allocated for paying back the loan is 7 days.
The features of Payday Loans;
- The amount of money issued ranges from as low as KES 100 to KES 50,000
- Payday Loans are short term in nature
- Payday Loans have low interest rates
- The duration of time allocated in repaying the Payday loans is 1 month [30 days]
- Payday loans are usually disbursed by the means of M-pesa
-An applicant should make sure to thoroughly read and understand the various terms and conditions listed before attempting to sign up for any type of Payday Loans.