In today’s guide, we will show you how KCB Mpesa works.
KCB M-Pesa is one of the commercial bank-backed micro-loan apps like M-Shwari by Commercial Bank of Africa or Timiza by Barclays. KCB Mpesa gives out millions of shillings daily as loans through mobile loans.
The popularity of mobile loans in recent times has been helped by the suspension of unsecured personal loans by most commercial banks on the back of September 2016 legal ceilings on loan charges.
The growth of these mobile loans app has also benefited from a growing number of sports betting people who are also drawn by the instant low-value offerings.
As a result, the sector of mobile micro-loans is becoming increasingly profitable for banks and non-bank firms that have raised billions of shillings for loans, perhaps driven by the lack of loan charges caps, unlike traditional bank loans.
In collaboration with Safaricom, KCB said its client base has grown from 4 million to 14 million since the launch of the KCB-M-Pesa network in March 2015.
The re-engineered framework, which also provides enhanced savings items, comes with enhanced features. You will apply for and receive a loan in a couple of minutes.
Read this: How To Reverse Mpesa Transaction.
Table of Contents
How To Sign Up For KCB M-Pesa
To join KCB, Mpesa is free, but you should be a registered Mpesa user.
What Is M-Pesa
Here is how to open KCB Mpesa:
- Go to your mobile phone Sim Toolkit
- Select Mpesa option
- Go to loans and savings
- Select KCB option
- Press activate
- Follow the prompts by entering your details correctly
Yes, that is how KCB Mpesa works.
When the activation goes turns successfully, you will receive confirmation text detailing your loan limit as per your financial status as well as your loan credibility.
If you like, you can instantly apply for a loan at KCB Mpesa. The loan will be processed in a few minutes and then deposited into your KCB Mpesa account.
To withdraw your KCB loan via Mpesa, you will have to transfer money to your Mpesa account then withdraw the money.
Related article: How To Get Mpesa Statement.
What Are The KCB M-Pesa Features?
The following are the main features of KCB Mpesa:
- Instant loan borrowing.
- Loan application.
- KCB MPESA Loan limit ranges from Ksh. 50 to Ksh. 1 million.
- Savings
- The limit increase subject to early or on-time payment of the previous loan and increase in savings.
- 30 days repayment period.
- Loan repayment can be either is done from the KCB MPESA account or MPESA.
- Late payment leads to additional charges as well as negative listing.
KCB MPESA has two other amazing products, as well as soft loans. It has a package called a saving account for fixed savings and savings to account for goals.
The Flexible Spending Account (FSA) gives you the option to lock up your savings up to 12 months and will earn interest from your money. In Treasury Single Account (TSA), you set a target and make deposits to meet it regularly. The deposits do not need to be less than Ksh. 500.
Recommended reading: How Does M-Pesa Agent Make Profit.
Who Qualifies For The KCB Mpesa loan?
To be eligible for the KCB Mpesa loan doesn’t require any paperwork or doesn’t have complicated procedures. And that is how KCB Mpesa works.
However, there are specific set criteria you need to meet before qualifying for a loan. Here are the must meet standards to be eligible for KCB Mpesa loan;
Credit Reference Bureau Regulation should not have listed you like a loan defaulter
You should have been using your Safaricom Mpesa for the last six months and more precisely your Mpesa Account.
Accept the KCB Mpesa terms and conditions
Remember to read and understand KCB Mpesa terms and conditions before accepting them.
Check out this too: How To Change M-Pesa Registration Details.
How Does KCB Mpesa Loan Work?
KCB Mpesa loan works by allowing M-Pesa customers to borrow money from KCB Bank, and they will pay back at an interest rate determined by the bank.
Follow this guide to know how KCB Mpesa loan work:
- Open the Mpesa menu
- Next, select Savings and Loans
- Choose Loan
- Now, you need to request a loan
- At this point, enter the loan amount you are applying for
- Enter your Mpesa PIN
That is it. You have successfully borrowed money using your account. That is how KCB Mpesa Loan works.
You will then receive the money in your KCB Mpesa account.
Related article: How To Fuliza Mpesa For Loan.
How To Withdraw KCB Mpesa Loan
Now you have the money in your KCB account. It is time to withdraw the money into your Mpesa account.
Here is how to withdraw the KCB Mpesa Loan:
- Go to KCB Mpesa menu
- You need to select Withdraw to MPesa
- Enter the amount to be transferred to your M-Pesa account
The money is now deposited to your account, and you will get a message that the money has been transferred successfully. So in summary, that is how KCB Mpesa works.
I was negatively listed in crb but cleared, how now can borrow again?
Though I was late when I paid my loan some years back,until now all attempts to borrow again had been declined due to late payment. Don’t you give loan ever again to such customers?