Unsecured bank loans in Kenya are becoming a popular financial option for individuals looking to fund various personal projects.
These loans are offered by established banks and financial institutions. They allow you to borrow money without needing to provide any collateral.
This can be particularly advantageous if you do not have assets to leverage or simply prefer not to risk them.
Understanding how these loans work and the eligibility criteria can help you make informed decisions.
Many banks in Kenya offer unsecured loans ranging from KSh 100,000 to KSh 7,000,000, making it accessible for a wide range of financial needs.
Whether you are looking to fund education, medical expenses, or a large purchase, unsecured bank loans offer a flexible and practical solution.
Unsecured loan requirements:
Most institutions will require at the very least, the following, when you are applying for a lone:
- Copy of your Kenyan National ID
- Proof of Residence (utility bill or lease agreement)
- 3 -6 months statement from your current bank or a recent payslip
- Kenya Revenue Authority PIN
Unsecured loan providers in Kenya
1) Equity Bank Personal Loans (Eazzy Loans)
Equity Bank in Kenya offers unsecured personal loans via mobile with its Eazzy Loans product. You can apply without needing guarantors or collateral. This makes it accessible if you need quick funds.
You can receive up to KSh 3 million instantly on your phone. The loan can be used for various personal needs such as education, medical emergencies, or home improvements.
Eazzy Loans requirements
- Equity Bank account that’s been active for not less than 6 months
- An active Equitel Line or EazzyApp
- Should be channeling your income through Equity bank (e.g. salary, farm proceeds, business income etc. so as to establish a good credit limit)
The repayment period for an Equity Bank personal loan is flexible, typically ranging up to 24 months. This allows you to choose a repayment schedule that fits your financial situation.
2) KCB unsecured non-check off loans
Another bank that offers unsecured personal loans in Kenya is KCB Bank. With this product, you can borrow up to KES 8,000,000 and repay within 96 months (8 years).
You can apply for the KCB personal loan directly through their website or by visiting a KCB branch.
The minimum you can borrow is KES 20,000
Requirements
- Latest original Pay slips if employed
- Valid Kenyan ID or passport
- Proof of source of income for self-employed individuals
- Active KCB account holder for a minimum of 6 months
3) I&M Bank Personal Loan
With I&M bank, you can borrow between KES 100,000 and KES 10 million without providing any collateral.
The loan tenure ranges from a minimum of 1 month to a maximum of 60 months.
This flexibility allows you to choose a repayment plan that suits your financial situation. The bank also offers competitive interest rates and processing fees.
For additional peace of mind, I&M Bank includes credit life insurance. This ensures that your loan obligations are covered in case of unforeseen circumstances.
Through the I&M@Work program, you can apply for a new loan or transfer an existing one on favorable terms.
This program is designed to support Kenyan employees effectively.
I&M Bank’s commitment to providing convenient loan options is evident with its offer of up to KES 10 million in personal loans. This is the highest limit for unsecured personal loans in Kenya.
Apply for I&M personal loans
4) Cooperative Bank salary loan
Co-operative Bank offers a salary loan that is designed for salaried employees. You can borrow from Ksh 50,000 up to Ksh 8,000,000.
The loan term can be as long as 96 months, giving you ample time to repay.
This loan can be used for various purposes such as education, medical expenses, buying furniture, purchasing a vehicle, or even taking a holiday.
Specific terms include a quick appraisal process that typically takes just 48 hours.
To qualify, you must have a salary account with Co-operative Bank.
Loan is insured against death and permanent disability. It does not cover retrenchment.
Monthly repayments are automatically deducted from your salary. Early repayment is also an option, giving you flexibility in managing your loan.
5) NBK Personal Loan
The National Bank of Kenya (NBK) offers unsecured personal loans to cater to various financial needs.
You can borrow between KSh 50,000 and KSh 6,000,000 from NBK without needing any collateral. This makes it accessible and convenient for many people.
The loan application process is straightforward. You have to fill out an application form and provide necessary documents like identification and proof of income.
Rates and fees
- Interest Rate – CBR + Bank Margin % p.a reducing balance.
- Loan amount – minimum of KSh 50,000 and maximum of KSh 6,000,000
- Tenure – minimum of 6 months and a maximum of 84 months
- Negotiation fees – 2% for new loans and buy offs; 1.5% for top-ups
If you make three consecutive payments, you have the option to top up your loan. This allows you to get an additional amount while continuing to pay off the original loan.
You can also buy off loans from other financial institutions i.e. banks, micro finances, and SACCO’s
To apply or learn more, visit NBK’s unsecured personal loan page.
6) Stanbic Bank Personal Loan
- Loan top ups after six months
- Zero security
- Fast approvals: 48 hours
- Amounts of KES 100,000 to KES 7,000,000
- Up to 96 months repayments (8 years)
- Credit Life Insurance on all loans
Stanbic Bank Kenya is another facility that offers unsecured personal loans in Kenya to help you meet various financial needs.
These loans don’t require collateral and provide flexibility in repayment terms.
You can borrow amounts ranging from 100,000 to 7,000,000 Kenyan Shillings, making it suitable for both small and large personal projects.
Interest rates and repayment terms are personalized. Stanbic Bank evaluates your financial profile to offer terms that match your situation.
You can start your application online or by visiting a Stanbic Bank branch. Required documentation typically includes proof of income, identification, and other standard financial information.
Stanbic Bank provides dedicated customer service to help you through the loan process. You can reach them via phone, email, or in person.
Dada Stanbic Bank Kenya also offers unsecured personal loans with flexible options to meet different needs.
This facility is tailored towards Kenyan business women. You can find more information on their services by checking their Dada services page.
7) Absa Bank unsecured loan
Absa Bank (formerly Barclays), offers unsecured loans ranging from KES 20,000 to KSH 6,000,000 without needing to use your assets as collateral.
You will have up to 8 years to repay your loans. Absa provides an online personal loan calculator to help potential borrowers estimate their monthly repayments.
To get approved, your personal credit rating and financial status are key factors. You should be ready to prove your ability to repay the loan.
The bank also claims to offer competitive interest rates on their personal loans.
For more detailed information on Absa Bank’s offerings, you can explore their personal loan options.
8) Family Bank PesaPap loans
Family Bank provides instant mobile loans through their PesaPap wallet.
This service is available to both Family Bank customers and non-customers, allowing them to access funds for personal and emergency needs quickly.
Accessing mobile loans
- Dial: *325#
- App login: Log in to the PesaPap App
- Open wallet: Follow the on-screen instructions
Checking your loan limit
- Menu navigation: From the PesaPap menu, select ‘My Loans’
- Loan limit check: Choose ‘Check Loan Limit’, enter your mobile banking PIN, MPIN, and submit
- Confirmation: Your eligible amount will be displayed, and you will receive an SMS confirmation
Applying for a mobile loan
- Menu navigation: Open the PesaPap Wallet menu and select ‘My Loans’
- Loan request: Choose ‘Request Loan’, enter the desired amount, and submit
- MPIN confirmation: Enter your MPIN to confirm the details
- Loan details: View the loan amount, facility fees, and due date, with an SMS confirmation
Loan charges
- Facility fee: The mobile loan has a facility fee of 6.62%, recoverable upfront (subject to CBR).
Loan repayment
Repay within 30 days through:
- Full repayment: Pay the total outstanding loan in one go
- Partial repayment: Pay in installments within the 30-day period
Requalifying for a loan
Once you clear your outstanding loan, you are eligible for a new loan.
Go to Family Bank mobile loans page
9) NCBA Bank Personal Loan
NCBA offers digital personal loans that are accessible through the NCBA NOW Mobile Banking App or via USSD *488#.
These loans are designed to provide quick, unsecured financing to customers with an active NCBA personal account.
Key features
- Unsecured loans: No collateral required.
- Loan limits: Minimum of KES 1,000 and a maximum of KES 1,000,000
- Tenure: Minimum of 3 months for loans below KES 50,000, and a maximum of 12 months.
- Access: Available through the NCBA NOW App or USSD.
- Credit Life Insurance: Provided with NCBA Bancassurance.
Eligibility
- Customer history: Must be an NCBA customer for at least 6 months with an active personal account and good account turnover.
- Account type: Only personal current accounts qualify; joint accounts do not qualify.
Cost of borrowingThe cost of borrowing refers to the total expenses that a borrower incurs when taking out a loan or using credit. This cost is not just the interest r...
- Processing Fee: 4% of the loan amount.
- Interest Rate: 20.6% per annum on a reducing balance.
- Insurance: 0.08%.
- Excise duty: 20%.
NCBA’s digital personal loans offer a convenient and quick solution for customers needing financial support, with straightforward eligibility criteria and manageable repayment terms.
Eligibility criteria
To qualify for an unsecured bank loan in Kenya, you need to meet several requirements. These criteria may vary slightly between banks, but the core requirements remain the same.
a) Age requirement: You must be between 21 and 60 years old to apply for an unsecured personal loan.
b) Employment status: You should be employed or have a stable source of income. Most banks will require you to provide proof of employment or income, such as recent payslips or bank statements.
c) Credit history: A good credit history is essential. Banks will check your credit score to assess your creditworthiness.
d) Income Level: Your monthly income should meet a minimum threshold, which varies by bank. This ensures that you can comfortably repay the loan.
e) Kenyan citizenship: You must be a Kenyan citizen with a valid ID. Some banks may also accept permanent residents.
f) Bank account: Having an active bank account is usually required. This is where your loan amount will be deposited and from where repayments will be made.
g) Loan amount and terms: Ensure that your desired loan amount is within the range that the bank offers, which is often between KSh 100,000 and KSh 7,000,000.
Checking the specific requirements for each bank can help you prepare the necessary documents and increase your chances of loan approval.
Interest rates and fees
When considering unsecured loans in Kenya, it’s essential to understand the interest rates and associated fees you will encounter.
These details can significantly vary between different banks.
Comparative analysis
Different banks in Kenya offer varied interest rates for unsecured personal loans.
For instance, Standard Chartered provides rates from 19.00% to 20.00%.
Stanbic Bank also charges competitive interest rates, alongside facility fees, but they are subject to your eligibility and terms and conditions.
The Kenya Commercial Bank (KCB) offers loans with flexible repayment periods, up to 96 months, and interest rates fitting your financial capacity.
You also need to ensure that the interests are on a reducing balance basis
Application process
To secure an unsecured bank loan in Kenya, you will need to submit certain documents and follow the bank’s approval timeline.
Each bank may have slightly different requirements, so it’s important to review the details provided by your chosen institution.
Required documentation
When applying for an unsecured loan, you will need to gather several documents. These include:
- Identification: A copy of your national ID or passport.
- Proof of income: Salary slips, bank statements, or tax returns to show your financial stability.
- Employment details: A letter from your employer confirming your job status and salary, if employed.
- Credit history: A report that highlights your credit score and any previous loans or financial obligations.
Additional documentation might be requested by the bank for verification purposes. Having all these documents ready can speed up the loan application process.
Approval timeline
The approval timeline for unsecured loans can vary based on the bank. Typically, the process takes 1-3 business days
- Initial review: After you submit your application, the bank will review your documents. This can take 1-3 business days.
- Verification: The verification process may involve contacting your employer and reviewing your credit history. This adds another 2-5 days.
- Decision: Once they verify your details, the bank will make a decision. This often happens within a week.
During this period, you may get calls from bank representatives seeking further information. A timely response will help expedite the process.
