HomeFINANCECheapest bank loans in Kenya All you need to know

Cheapest bank loans in Kenya All you need to know

The fact that loan applicants care to focus on the cheapest loan and more reasonable options led us to discuss “Cheapest bank loans in Kenya.” There are various costs associated with loans. These fees make up the interest rate, legal fees, insurance, expenses, and origination fees.

Stay tuned & follow the discussion.

About the cheapest bank loans in Kenya

Banks vary in power, and they offer different loan types with unique features. The most strange thing surrounding these types of loans is the fees and interest it draws. Some banks offer the best and cheapest loans with standardized fees. Yet, most Kenyans rely on loans to navigate financial needs, consistently seeking the most affordable loans ever.

Moreso, bank loans are articulated to be cheap when it has:

The low-interest-rate with long term
No or more insufficient origination fee
Have no secret charges
No late fees or other fees.

Cheapest Bank loans in Kenya

In our research and collection, we came up with banks that present the cheapest loans in Kenya. Some of these banks are:

1. The central bank of Kenya (CBK) has the benchmark as the best lender with a 9%

interest rate. This is because their loans are unique and follow due procedures.

2. Victoria Bank

This is one of the cheapest banks that present loans at a subsidized rate. They charge more fees on loans other than interest defined. They also stick to loan arrangements and offer more affordable credits.

3. KCB

KCB loans often draw a 13% interest rate. They offer different categories of loans. Running from Masomo loans, personal unsecured check-off, salary advancement, etc. The only additional fee you pay is a negation fee of 2.5%. Interest rate includes CBK rate at 9% and bank variable margin of 4%.

4.National Bank of Kenya

NBA is a commercial bank authorized by the central bank of Kenya. You can obtain an unsecured loan of kes. 6,000,000 without collateral

Benefits

Short processing period
Easy payment
No collateral needed
Top up your loan
Easily available

Rates & fees

Minimum of Kesh 50,000 & maximum of Kesh 6,000,000
The interest rate is based on CBR plus Bank Margin% p. an on a reducing balance.
Has a minimum of 6 months & a maximum of 84 months
Negotiation fees of 2% for first loans & buy-offs. Then 1.5% for top-ups.

Internal costs

Appraisal fees levied per individual

External costs

Excise duty
Insurance fees are levied against retrenchment and death.

5. HDFC Bank

HDFC is one of the largest private lenders in the country. The transparent procedure in offering loans helps customers with easy access to instant unsecured & other forms of loans.

Benefits

Loan disbursal within just 10 sec for pre-approved clients
Loan disbursal within 4 hours for other customers
Optional insurance coverage for clients
Hassle-free application procedure

6. Stanbic Bank Kenya

Stanbic Bank Kenya is also one of the top-notch loan providers with a top-notch group of loan products. The personal loan offered by the bank comes with flexible terms for the benefit of applicants. They include:

Benefits

Competitive interest rate
Flexible payment & loan-top after six months of repayment
Fast and hassle-free application procedure and fund disbursed within 48 hours

What you need to deliver

Kenyan National ID Card

Proof of Residence.

You can come along with your utility bill or rent agreement.
Three months’ bank information or your current payslip
Kenya Revenue Authority PIN

7. HF Group

HF Group is an incorporated property and financial solution regulated by the Central bank of Kenya. They are major economic institutions that offer SME loans & Asset financing in Kenya. The personal loan offered by the firm comes with the following terms:

Features & benefits

The maximum period of 36 months & Maximum amount of Kesh. 500,000
No early repayment fines
The beautiful interest rate on reducing balance

Interest rates in loans per bank

Cooperative bank 13.5%
Equity bank 13%
KCB 13%
Barclays bank 14%

Common types of cheap loans offered by many banks

  1. Secured loans
  2. Salary advance

How to achieve a quick search on the cheapest bank loans in Kenya

To perform a quick search for the cheapest bank loans in Kenya, follow the procedure below:

Learn how to operate the credit calculator online/mobile application
Check out sites
Read reviews on different bank loans either online or on the Google play store.

Credit calculator mobile application

his is a tool that calculates & shows the total cost of credit pricing mechanisms. The application allows borrowers to compare bank loan costs established on standardized gauges.

Conclusion

Most borrowers fall as a target to banks that offer expensive loans. The reason is that they patronize the alleviation of getting the loans rather than understanding the interest or other fees attached. Because it is critical, borrowers seem not to detect some features. As a result, some banks exploit Kenyans at their moment of vulnerability.

It is more beneficial to conduct proper research for the cheapest loans before accepting one loan. However, it does not have to screw you as long as you have repayment standards.

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