How to Qualify for KCB M-PESA Loan and Boost Your Loan Limit

KCB M-Pesa is one of the most-used loan apps Kenyans use to get instant loans. It offers Safaricom customers instant loans and savings options on their phones.

Eligible users are able to borrow from as little as Ksh 100 up to Ksh1 million, with loans credited instantly to an M-PESA account and repayable within 30 days.

Borrowers are charged a facility fee of 8.93%, while those who save can earn interest of up to 6.3% per year through the platform’s savings products.

To qualify for a KCB M-PESA loan, customers must first meet several requirements.

Eligibility Requirements

They must be registered Safaricom M-PESA users with a Kenyan National ID that is linked to their M-PESA account.

Those registered using passport details are required to update their registration at a Safaricom Shop using their National ID before activating the service.

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Customers must also have used M-PESA for at least six months. New subscribers who have been on M-PESA for less than six months are assigned a loan limit of zero until they build a sufficient usage history.

Customers using KCB M-PESA can increase their chances of qualifying for higher loan limits by constantly using Safaricom services such as M-PESA.

How To Increase Limit

Additionally, saving regularly through KCB M-PESA also contributes to building a good customer profile that increases loan limits.

Regularly saving through KCB M-PESA also contributes to building a stronger customer profile, which can help improve future loan limits.

The platform offers two savings options which are designed to encourage financial discipline.

The Fixed Savings Account allows users to lock away a minimum of Ksh 500 for between one and 12 months, earning interest of up to 6.3 percent annually.

Savings Accounts

However, when a customer decides to withdraw money from a fixed savings account, all accrued interest will be lost.

Target savings, on the other hand, enables customers to save gradually towards a financial goal with savings from as low as Ksh 50.

In the target savings account, customers can withdraw their savings any time they want, with the withdrawal applying to the entire saved amount.

Unlike the fixed account, customers can withdraw their savings early, although the withdrawal applies to the entire saved amount.

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Customers can activate KCB M-PESA through the M-PESA App, MySafaricom App, the Safaricom SIM Toolkit or by dialling *334#.

The service also allows free transfers between an M-PESA wallet and a KCB M-PESA account, eliminating the need to visit a bank branch or complete physical application forms.

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A photo of a KCB Bank branch. PHOTO/KCB