There is no doubt that the demand for mobile money apps has been on the increase in Kenya. Mobile lending apps continue to attract players who have a good standing with their clients and outstanding services while others are suspicious. Those players who struggle in the mobile lending industry cannot either fulfill the prospects of the customers or come up with a fascinating customer escapade in-app. Many clients do not want to spend a lot of time on the registration page of the lending app when all they want is register and ask for a loan.
With the advancement of technology, the mobile lending apps have had a significant impact on the lives of many Kenyans. People prefer borrowing money from these lending apps instead of family and friends and risk straining relationships that will take long to repair. Also, with just a smart phone, a person in Kenya can access a big range of these money lending apps. Many players in this lending industry prefer Android enabled phones since they are readily available to most Kenyans. It is essential for all customers to check their status with the Credit Reference Bureau. Of the five we shall look at, only Safaricom’s M-shwari appears on all platforms
M-shwari
M-shwari is a money lending app that is operated by Kenya’s largest telecommunication firm Safaricom. The lowest amount that a person can receive from M-shwari is a hundred Kenya shillings, while the maximum amount is not known. Users who pay their first loan on time and increase their savings on this lending app qualify for a higher loan limit in future. M-shwari loans are payable within 30 days and attract a 7.5 % interest. After processing the loan, the money is deposited in the customers Mpesa account in a short period.
Branch
This app is among the most entrenched money lending apps inside Kenya and outside. People who qualify for Branch loans can receive Ksh. 70,000 from their mobile phone at any given time. Users of Branch have to download the app from Play Store and stick to the guidelines for registration. Approval of Branch loans takes place in 24 hours, and the app boasts of having no hidden fees. Many people prefer this lending app because it does not charge late and rollover fees. Duration of the loan can be from 4-48 weeks, while the interest rates vary from 13%-29%.
Utunzi
This app has also taken a place in the Kenyan mobile money lending industry. This product provides its users with a variety of choices in case they do not want to use any other app on Google Play Store. Utunzi, just like other money lending apps uses Mpesa to process the loans for their customers. Utunzi provides personal and business loans. The lowest amount the app provides is Ksh. 300 and the highest is Ksh. 1million. The duration of the loan ranges from 91 days, and 36 months, while the interest rate is 12 % with a Ksh. 400 account service fee.
Berry
Many users of Berry describe the app as a unique product that provides loans that are low-cost and instantaneous. Also, the app offers users repayment plans that are flexible. Just like other money lending apps, customers download Berry from Play Store. After registration, and the verification process of personal details, users can access the loan. The initial loan that the app provides cannot go beyond Ksh. 500 and this limit increases moderately to Ksh. 50,000. Service fee of Berry loans ranges from 9-16 % of the primary amount.
iPesa
This loan app provides credit that ranges from Ksh. 500 to Ksh. 50,000. The shortest loan period for this loan app is 91 days with 180 days being the minimum duration for you to clear the loan. iPesa users have ample time to clear their outstanding loans; thus, it attracts many customers. These loans attract a 12 % interest rate and the app has no service fee. The user downloads the app and registers using their Mpesa line. After verification, the customers’ request for the exact amount that they want, and this amount rises if they pay on time.
The future of money lending apps in the country is bright because the mobile money industry covers a large part of the population. A lot of critics contend that increase in the number of money lending apps saturate the industry. But the demand for emergency loans by individuals and small businesses leads to the increase of loan apps. However, it is becoming hard for users to differentiate between authentic and non-genuine loan lenders who are out to exploit innocent Kenyans. Therefore, it is prudent for people who use these apps to carry out due diligence of the loan app they wish to transact with and choose the one with the best returns and services.