May 10, 2024

Mobile Loans offered by NCBA Bank: Loop

Loop by NCBA is a digital banking service by NCBA Bank Kenya that lets customers manage their money by providing all the banking experiences at a go. It offers a whole banking experience through both mobile and web.

One of the most interesting operation features that caught my eye was that a customer can open an account in under 4 minutes and start transacting immediately. This cuts on the waste of time when a customer had to walk to the nearest branch to set up an account.

After opening an account, Loop offers an opportunity to secure data and banking experience through a fingerprint. This means that only the owner of the phone will have access to the app, preventing important banking data from landing in the wrong hands.

Access to fast and affordable credit has been a major challenge for most small and medium businesses (SMEs) in the country. With Loop, users can get a Personal Loan of up to 3 million shillings and an overdraft of up to 100, 000 shillings without any paperwork.

There has been talk about Kenyans being among the poorest when it comes to spending habits and savings. No other banking app lets one keep track of what they have got on their bank account. It allows them to budget for their monthly spending, and track and analyse their expenses easily, hence knowing where and how to spend their money.

Many businesses around the country are moving away from dealing with hard cash. Many have embraced the use of mobile money through Paybill and Till Numbers. Loop lets one make payments to mobile money or to a bank. One can also pay bills or pay merchants through Pay Bill, Till, or with their Loop card.

Investment opportunities are some of the most asked questions among Kenyans, especially the youth. With Look, one can set up a Loop Invest with as little as 1000 shillings and get competitive interest rates on their investment. One can also simply set up their various goals and track each of them as they go.

Loop Features

  • The feature to Link bank accounts safely: It allows one to make payments from a primary linked bank account. This interesting feature allows them to connect their bank accounts to Loop.
  • Feature to Link cards on LOOP: This makes it easier and more secure to move, manage and pay money between accounts. Users can transfer money between accounts, pay bills, move money to friends and family, and so on.
  • The feature to manage and redeem accumulated LOOP Points for rewards and offers: These accumulated points can then be used to redeem rewards or special offers. The feature allows users to view and manage their points balance, and redeem their points for rewards such as discounts, gift cards, or merchandise.
  • There are two types of “Loop”; LOOP Pro and Loop Lite. Loop Pro is for bank account holders, and Loop Lite is for everyone else, with a limit of 300,000 shillings.
  • The bank also introduced something that might shift how other banks revamp their apps. A customer or Loop user can now send and receive money using QR Codes as well as adding multiple mobile money phone numbers, which can be used when making payments.
  • I will talk about Loop Cards in another story but with the recent revamp, one can now have both physical and virtual LOOP cards with 3-year validity for physical and 6-month validity for virtual cards. What is more, Loop now has a LOOP Till Number.
  • For those who love living the spirit of Harambee, there is a new surprise within Loop where individuals can now do harambees through the “Money Pool” feature. There is also a Buy Now Pay Later feature, but not active at the moment. It would be interesting to watch that feature.

How to Apply for NCBA Loop Loan, App, Repayment, Fees, Contacts

One can use their loop account to send money to other loop accounts, send money to other bank accounts, and also pay bills like DSTV, electricity, etc.

Who is eligible?

For one to request for a loop loan, they need to have had an active Loop account for 3 months. They must be 18 years and above, have a National ID, a functional email address, and KRA PIN.

Eligibility is achieved through loop activity. The more active one is involved with loop, the higher their chances of getting a loan.

Loan Limits and interests

  • NCBA Loop offers personal loans of between Ksh50,000 and Ksh3 million. Additionally, you can get an overdraft of up to Ksh100,000.
  • Repayment periods lie between 6 and 36 months, with an interest rate of 13%.

Here is a breakdown of the loan fees:

  • Interest Minimum: 13%, year one
  • Interest Maximum: 13%, year one
  • Processing fee: 2%
  • Insurance Fee: 0.7%
  • Withdrawal Fee: Ksh42
  • 20% excise duty on processing fee

However, processing fees and excise duty are only applied to year one. For loans longer than one year, your annual cost from year two onwards will be 13.0%.

In Conclusion, Loop is a digital banking service that helps you manage your money better anytime, anywhere. It looks to put financial control back into your hand, quite literally by offering a full banking service delivered through mobile (Android & IOS) and web experience.

Why Loop?

  • Open your account in under 4 minutes and start transacting. Enjoy stress-free and secure banking using your fingerprint to log in to your account.
  • Get a Personal Loan of up to KES.3 Million and an Overdraft of up to KES.100, 000 without any paperwork.
  • Keep track of what you’ve got. Loop allows you to budget for your monthly spend, track and analyse your expenses easily.
  • Make payments to mobile money or to a bank. You can pay bills or pay merchants through Pay Bill, Till or with your Loop card.
  • Set up a Loop Invest with as little as Kes.1000 and get competitive interest rates on your investment or you can simply set up your various goals and track each of them as you go.

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