20+ Unsecured Personal Loans in Kenya (2024)

Unsecured personal loans in Kenya have become an increasingly popular financial solution, offering a convenient way to access funds without the need for collateral. Whether you’re facing a sudden emergency, planning a wedding, or consolidating debt, these loans provide quick and flexible financing options.

In this comprehensive guide, we’ll delve into the world of unsecured personal loans in Kenya, outlining eligibility requirements, application procedures, top lenders, and everything you need to know before making an informed decision.

Unsecured Personal Loan Eligibility Conditions

To qualify for an unsecured personal loan in Kenya, borrowers typically need to meet the following criteria:

• Kenyan Citizenship or Valid Residency Permit: You must be a Kenyan citizen or a foreigner with a valid work permit or residence permit.
• Age: Most lenders require borrowers to be at least 21 years old and not older than 60 years old at the time of loan maturity.
• Income: You’ll need to demonstrate a stable source of income, either through employment or business. Lenders often have minimum income requirements.
• Credit History: While unsecured loans don’t require collateral, a good credit history can improve your chances of approval and secure better interest rates.
• Bank Account: You’ll typically need an active bank account for loan disbursement and repayment.
• Employment: Some lenders may require you to be employed for a minimum period, typically six months to a year.

How Do Unsecured Personal Loans Work?

Unsecured personal loans operate on the principle of trust. Lenders assess your creditworthiness based on factors like your income, credit history, and employment stability. Unlike secured loans, you don’t need to pledge any assets as collateral.

This makes them more accessible but often comes with higher interest rates due to the increased risk for lenders.

The application process typically involves submitting personal and financial information online or at a branch.

Upon approval, the loan amount is disbursed to your bank account, and you’ll make regular monthly repayments over the agreed-upon loan tenure.

Top 10 Best Unsecured Personal Loans in Kenya (2024)

1. National Bank Unsecured Personal Loan

• Unsecured Personal Loans in Kenya: National Bank offers unsecured personal loans with quick processing times (up to 48 hours).
• Loan Info: Loan amounts range from KSh 50,000 to KSh 6,000,000 with a maximum tenure of 84 months. Interest rates are based on the Central Bank Rate (CBR) plus a bank margin.
• Pros: No collateral required, loan buy-offs, and top-up options available.
• Cons: Negotiation fees and limited to employees of companies with a check-off agreement.

2. Standard Chartered Personal Loan

• Loan No Collateral: Standard Chartered Bank offers unsecured personal loans with competitive interest rates.
• Loan Info: Loan amount and tenure information is personalized, and interest rates vary.
• Pros: Accessible through the SC Mobile App, online banking, or at a branch.
• Cons: Requires salary transfer to Standard Chartered Bank.

3. KCB Bank Personal Unsecured Non-Check Off Loan

• Personal Loans Without Security in Kenya Today: KCB Bank provides unsecured personal loans for both salaried and self-employed individuals.
• Loan Info: Offers loan amounts between KSh 20,000 and KSh 8 million with flexible repayment periods up to 96 months.
• Pros: No security required, accessible to all, and attractive loan limits.
• Cons: Interest rates and specific requirements may vary.

4. I&M Bank Unsecured Personal Loan

• Unsecured Loans in Kenya for Unemployed: While not explicitly for the unemployed, I&M Bank’s personal loans can be suitable if you have an alternative source of income.
• Loan Info: Loan tenures range from 1 to 60 months with competitive interest rates and processing fees.
• Pros: Loan insurance included, flexible tenure, and competitive rates.
• Cons: Eligibility may depend on income proof, and specific terms may vary.

5. Tala Loan App

• Online Loans Without Security in Kenya Today: Tala is a popular mobile loan app offering quick and convenient unsecured loans.
• Loan Info: Loan amounts and terms vary depending on your credit history and usage.
• Pros: Easy application process, quick approvals, and accessible via mobile.
• Cons: Potentially high interest rates and limited loan amounts for new users.

6. Branch Loan App

• Unsecured Mobile Loans in Kenya: Branch is another mobile loan app offering unsecured personal loans with minimal documentation.
• Loan Info: Loan amounts and interest rates vary based on your creditworthiness.
• Pros: Fast and easy application process, quick approvals, and no collateral required.
• Cons: Interest rates can be high, and loan amounts may be limited.

7. Timiza by Barclays Bank

• Unsecured Personal Loans in Kenya: Timiza is a digital lending platform by Barclays Bank, offering unsecured loans through a mobile app.
• Loan Info: Loan amounts and interest rates are determined based on your financial profile and credit history.
• Pros: Convenient mobile app, fast loan processing, and flexible repayment options.
• Cons: Limited to Barclays Bank customers and may require a good credit history.

8. HF Group Whizz

• Loan No Collateral: HF Group’s Whizz is a digital lending platform offering unsecured personal loans to salaried employees.
• Loan Info: Loan amounts up to KSh 3 million with flexible repayment terms.
• Pros: Quick approvals, online application, and competitive interest rates for qualified borrowers.
• Cons: Limited to salaried employees and may require a good credit history.

9. M-Shwari by Safaricom and NCBA Bank

• Unsecured Mobile Loans in Kenya: M-Shwari is a mobile banking service offering unsecured loans through the M-PESA platform.
• Loan Info: Loan amounts range from KSh 100 to KSh 50,000 with a one-month repayment period.
• Pros: Easy access through M-PESA, quick approvals, and no paperwork required.
• Cons: Relatively high interest rates and limited loan amounts.

10. Zenka Loan App

• Online Loans Without Security in Kenya Today: Zenka is a mobile loan app offering unsecured personal loans with flexible repayment terms.
• Loan Info: Loan amounts and interest rates vary depending on your creditworthiness.
• Pros: Easy application process, fast approvals, and accessible via mobile.
• Cons: Potential for high interest rates and fees, and limited loan amounts for new users.

Compare Unsecured Personal Loans in Kenya (2024)

Frequently Asked Questions

1. Can I get an unsecured personal loan with bad credit in Kenya?

While a good credit history can improve your chances of approval and secure better interest rates, some lenders in Kenya may consider applicants with less-than-perfect credit. However, they might offer smaller loan amounts or higher interest rates. Mobile loan apps like Tala and Branch might be more accessible for individuals with limited or no credit history.

2. What is the average interest rate for unsecured personal loans in Kenya?

Interest rates for unsecured personal loans in Kenya vary significantly depending on the lender, your creditworthiness, and the loan amount. As of 2024, rates can range from 12% to 25% APR or higher. It’s crucial to compare offers from different lenders to find the most competitive rates.

3. How long does it take to get approved for an unsecured personal loan in Kenya?

The approval process for unsecured personal loans in Kenya can vary, but many lenders offer quick approvals, sometimes within 24-48 hours. Online lenders and mobile loan apps often have faster approval times compared to traditional banks.

4. Can I use an unsecured personal loan for any purpose?

Yes, unsecured personal loans in Kenya are generally flexible and can be used for various purposes, including debt consolidation, medical expenses, education, home improvement, weddings, and travel. However, some lenders may have restrictions on the use of funds for certain purposes.

5. How can I improve my chances of getting approved for an unsecured personal loan in Kenya?

To increase your chances of approval, ensure you meet the eligibility criteria, have a good credit history, and provide accurate information in your application. You can also try applying with a co-signer if you have limited credit history or income.

Source:

• National Bank: https://www.nationalbank.co.ke/for-you/get-a-loan/unsecured-personal-loan/unsecured-personal-loan
• Standard Chartered Bank: https://www.sc.com/ke/loans/personal-loans/
• KCB Bank: https://ke.kcbgroup.com/for-you/get-a-loan/unsecured-loan/personal
• I&M Bank: https://www.imbankgroup.com/ke/personal/loans/unsecured-personal-loan/
• Stanbic Bank: https://www.stanbicbank.co.ke/kenya/personal/products-and-services/borrow-for-your-needs/unsecured-personal-loan