Access credit without pledging assets. Compare mobile loans, bank unsecured loans, and credit cards. Find the best no-collateral financing option.
Unsecured loans, also known as loans without collateral, are credit facilities that don't require you to pledge assets like property, vehicles, or land as security. Lenders approve these loans based on your creditworthiness, income, and repayment history rather than physical assets. In Kenya, unsecured loans have become increasingly popular due to mobile lending platforms and banks' digital transformation.
Mobile loans revolutionized borrowing in Kenya by providing instant credit through smartphones. These loans require no collateral and offer same-day disbursement, making them ideal for emergencies and short-term needs.
Pioneer mobile loan service
Access via M-PESA menu. Loan limit increases with successful repayments. Interest rate is 7.5% per 30 days (approximately 90% APR). No application fees.
Popular mobile banking loan
One of the most affordable mobile loans at 2.5% per month (approximately 30% APR). Higher loan limits available. Access through KCB M-PESA app. Facility fee of 5% on first loan.
App-based instant loans
Uses smartphone data and alternative credit scoring. Rates vary based on risk profile. Offers loan top-ups and refinancing options. Popular for its flexibility.
AI-powered mobile lending
Flexible repayment schedules from 4 weeks to 68 weeks. Uses machine learning for credit decisions. Offers rewards and cashback programs. Transparent pricing.
M-PESA overdraft facility
Overdraft service that completes M-PESA transactions when you lack sufficient balance. Interest charged daily on outstanding balance. One-time access fee of 1% on each advance.
Traditional banks offer unsecured personal loans with better rates than mobile loans but require more documentation and longer processing times. These are ideal for larger amounts and longer repayment periods.
No collateral up to KES 500,000 for salaried employees. Check-off facility available. Competitive rates and flexible terms. Insurance included.
Fast processing with extensive branch network. No collateral up to KES 500,000. Existing customers get 0.5% rate discount. Equity Eazzy App for online applications.
Cooperative members get preferential rates (0.5% discount). No collateral required up to KES 1M for qualifying customers. Strong focus on customer service.
Online application available. No collateral for salaried employees earning above KES 30,000. Flexible repayment options and no early repayment penalties.
Credit cards provide revolving credit without collateral. They offer flexibility for ongoing expenses and can be more cost-effective than loans if paid in full monthly.
45-day interest-free period on purchases. Reward points on spending. Travel insurance included.
Up to 50 days interest-free. Global acceptance. Cash advance facility available.
45 days interest-free on purchases. Comprehensive travel insurance. Worldwide merchant acceptance.
| Loan Type | Interest Rate | APR (Estimated) | Max Amount | Processing Time |
|---|---|---|---|---|
| KCB M-Pesa | 2.5% monthly | ~30% | KES 1M | Instant |
| Bank Personal Loan | 13-17% p.a. | 15-19% | KES 5M | 1-3 days |
| Credit Card | 2-2.5% monthly | 24-30% | KES 5M | 5-7 days |
| M-Shwari (Safaricom & NCBA) | 7.5% monthly | ~90% | KES 150K | Instant |
| Tala (Formerly Mkopo Rahisi) | 5-11% monthly | 60-132% | KES 50K | Minutes |
| Branch | 6-14% monthly | 72-168% | KES 70K | Instant |
| Fuliza (Safaricom) | 1.083% daily | ~395% | KES 70K | Instant |
Note: APR calculations include interest and typical fees. Mobile loan APRs are significantly higher due to short tenures and monthly compounding.
No documents needed - approval based on digital footprint and transaction history.
Note: Credit cards have stricter requirements than personal loans due to revolving credit nature.
Start with small mobile loans (KES 1,000-5,000) and repay on time. This builds your credit score and qualifies you for larger amounts and better rates.
Example: Start with Tala KES 1,000, repay on time 3 times, then qualify for KES 20,000 at better rates.
If you have a good relationship with your bank, salary account, or significant deposits, you can negotiate better rates on personal loans. Don't accept the first offer - ask for 1-2% rate reduction.
Having multiple active loans, especially mobile loans, damages your credit score and reduces future loan limits. Complete one loan before taking another unless absolutely necessary.
If struggling: Contact lender immediately to arrange restructuring before defaulting.
Bank personal loans (13-17% p.a.)
Mobile loans (instant approval)
Bank loans & credit cards (up to KES 5M)
Credit cards (revolving credit)
Find the best unsecured loan for your needs with our comparison tool.
Compare LoansYes, unsecured loans typically carry higher interest rates (13-18% vs 8-12% for secured loans) because lenders take more risk without collateral. However, they offer faster access and don't put your assets at risk.
It's difficult. Most lenders require CRB scores above 600. If your score is low, consider: 1) Starting with small mobile loans to rebuild credit, 2) Getting a guarantor for bank loans, or 3) Applying to government funds (YEDF, WEF) which are more lenient.
You'll be listed with Credit Reference Bureaus, affecting future credit access for 5-7 years. Lenders may pursue legal action, garnish your salary (if salaried), or use collection agencies. Penalties and interest accumulate, significantly increasing the debt.
1) Borrow and repay consistently and on time, 2) Increase M-PESA transaction volume, 3) Maintain account for longer periods, 4) Link additional accounts (bank, social media), 5) Avoid defaulting on any digital loans.
Yes, significantly. KCB M-Pesa charges 2.5% per month (~30% APR) while M-Shwari charges 7.5% per month (~90% APR). For a KES 10,000 loan over 30 days, KCB M-Pesa costs KES 250 interest vs KES 750 for M-Shwari.
Use credit cards if you can repay within the 45-50 day interest-free period. For longer repayment needs (6+ months), personal loans are cheaper. Credit cards are also better for ongoing, flexible expenses while loans suit one-time large expenses.
Compare rates from banks and digital lenders to find the best option.