“I am currently earning Ksh 50,000 and I want a loan to build my house in the village and start a business. I don’t know the best place to get a loan and how much I can get in Kenya”
Answer
If your salary is Ksh 50,000, you can get a loan of up to 5 times if you save in a Sacco. Assuming that your salary is Ksh 50,000, your total expenses will be Ksh 20,000 to Ksh 30,000. You will save Ksh 20,000 monthly. We give you 4 years of saving. If you save Ksh 20,000 monthly, by the end of your fourth year, you’d have saved Ksh Ksh 960,000. You will get a loan 5 times your savings, which is Ksh 4,800,000.
Here is the amount of loan you will get for the period you save your money
1 year savings—-Ksh 600,000 loan
2 years savings—-Ksh 2,400,000 loan
3 years savings—Ksh 3,600,000 loan
4 years savings—Ksh 4,800,000 loan
5 years savings—Ksh 6,000,000 loan
6 years savings—-Ksh 7,200,000 loan
7 years savings—-Ksh 8,400,000 loan
Saccos charge the lowest interest rates on loans. Their rates range between 6% and 10% per year.
The best Saccos to join in Kenya include: Stima Sacco, Safaricom Sacco,Kimisitu Sacco,Hazina Saacco,Kenya Police Sacco,Harambee Sacco and Shirika Sacco.
You can also get a loan from banks. Most banks demand your Mpesa Statement or your payslip. With a salary of Ksh 50,000, they will give you a loan of Ksh 1.5 million to Ksh 3 million which you will repay within 4 to 7 years.
The bank loans will attract interest of 12% to 18% per year. The interest is higher than what Saccos charge.
Saccos and banks are the best places to get a loan from. You can also get quick loan from mobile Apps but they attract high interest.
When taking a loan, avoid Microfinance Institutions because they will frustrate you.They also charge interest of 20% and above.
