Recently I was discussing with a friend about loans in Kenya. He told me that he took a loan from a microfinance bank, the loan was Ksh 350,000. He ended up paying Ksh 800,000. The interest was crazy and the company employees harassed him a lot. He regrets taking the loan. Now he wants to take a loan of Ksh 1 million to Ksh 5 million to buy land and build a house. He wants to know a safe place to apply for the loan and repay with low interest rate.
Well, in Kenya when you want to apply for a loan avoid shylocks and microfinance institutions. Such institutions will charge interest of 30%-100%. They will award you a loan of Ksh 1 million and by the end of repaying the loan, the total amount you’ll pay is Ksh 2 million. To be safe, get a loan from these institutions.
Saccos charge interest of 8%-15% per year on loans, they also award loans of up to 5 times your savings. All you need is to save at least Ksh 300,000 and apply for the loan. You should be in the Sacco for at least 6 months for you to be eligible for the loan.
Some of the best Saccos to join in Kenya include:
Stima Sacco—loan of up to Ksh 20 million
Kenya Police Sacco—Loan of up to Ksh 15 million
Harambee Sacco—Loan of up to Ksh 20 million
Hazina Sacco—Loan of up to Ksh 10 million
Tai Sacco—Loan of up to Ksh 10 million
Sheria Sacco—Loan of up to Ksh 15 million
Verona Huruma Sacco—Loan of up to Ksh 10 million
UN Sacco—Loan of up to Ksh 30 million
Shirika Sacco—Loan of up to Ksh 10 million
NRS Sacco—Loan of up to Ksh 20 million
Capital Sacco—Loan of up to Ksh 15 million
Unison Sacco—Loan of up to Ksh 20 million
The Kenya Bankers Sacco—Loan of up to Ksh 15 million
Repayment period is up to 72 months.
You can take a loan against your shares or savings.
You should also get a loan from a bank in case you are not a member of any Sacco. Asset Financing will help you develop your plot. You can also take a normal loan. Banks will assess your statement and see how much they will award you.
Most banks require a statement of at least 6 months for them to award you a loan.
With a loan of Ksh 1 million to Ksh 5 million, the interest rate will be 11% to 18% per year.
Always join a stable bank that can give a loan of even Ksh 50 million.KCB, Cooperative Bank, Stanbic Bank and Kingdom Bank are among the best banks to get a loan from
Those are two places you can get loans of more than Ksh 1 million with low interest rate. If you want a loan of Ksh 500 to Ksh 200,000, you can get it quickly from a mobile Loan App.
Majority of the loans are processed within 2 working days.
