There is no doubt on the meteoric popularity of loan apps in Kenya. In deed, many Kenyans are now turning to loan apps to shore up their financial needs, thanks to their instant availability.
However, while their popularity rises, their costs have largely been left unknown. And in this feature, we take a look at a the approximate amounts various loan apps will charge you if you take a Sh. 50,000 loan on them.
1. A loan from Mshwari of Sh. 50,000 payable in one month will cost you Sh. 3,750/-
2. The same amount from KCB Mpesa will cost you Sh. 1,955.
3. Tala will cost you Sh. 7,500 + Sh. 220 (Mpesa Pay bill charge)
4. The new Barclays Timiza will charge Sh. 585 and interest of 5 per cent.
5. Equitel will cost Sh. 1,130 + Sh. 500 processing and Sh. 50 duty
6. Cooperative MCoop Cash will cost you Sh. 580.
This means that MCoop Cash may be the most discounted mobile loan app in Kenya.
It is noted though that while getting a mobile loan is easy because loan apps don’t demand for the traditional guarantors or security, defaulting on them will have the sane consequences as defaulted bank loans.
These will include getting blacklisted on taking any future loans without a clearance from a credit rating bureau, as well as the possibility of getting auctioned.