HomeBUSINESSCheckoff Loans in Kenya and Rates 2022

Checkoff Loans in Kenya and Rates 2022

Today’s article will look at the various places where workers can secure checkoff loans in Kenya &their rates. We will define checkoff loan, its benefits, and the multiple institutions that offer these loans.

What is a Checkoff Loan?

A checkoff loan is a loan made open to employees of a particular company whose employer has marked an MOU with a lending institution to provide its employees loans.
The loan repayments are deducted just directly from the employee’s salary and sent to the lending institution.
Therefore, the obligation to remit the loan repayments fibs with the employer.

Why take a Checkoff Loan?

Checkoff loans are fast processed within the shortest time.
Sometimes an worker can enjoy a lower interest rate relying on the negotiation between the employer and the bank.
Moreover, one must not present security to get a checkoff loan. The only proof of job is needed.
Repayment terms are also more adaptable than when you take any other loan from the bank.

Checkoff loans Providers in Kenya?

There are many lending organizations offering checkoff loans in Kenya. The profitable news is that most employers might have an MOU with more than one lending institution. Thus, making it more easier for an employee to choose from a wide range of lending organizations to secure their checkoff loan.

Equity Bank Check-off loans

Equity Bank is the most famous lending institution with MOU with different companies to offer checkoff loans to their employers. There are no lengthy processes to put up with before guaranteeing a loan.

Moreover, this checkoff loan has a refund period of up to 12 months, and one can access up to Ksh 300,000.
All that one needs to offer is an introduction letter from your employer and documents of your payslip for the last 3 months.

Absa Kenya loans

Absa Group offers checkoff loans for workers whose employers have signed an MOU with them. Thus, if an employee is experiencing a personal crisis, they don’t have to worry about it because Absa got them.
It’s worth mentioning that all that one needs to introduce to the bank before accessing this loan is copies of bank information and the most recent payslip.
Elements of Absa Group Checkoff Loan
The repayment period is between 12 to 72 months
No guarantee is required to access the loan
Absa Group offers competitive interest rates as likened to other banks
One can borrow up to Ksh 6,000,000
Through this loan, one will earn access to affordable life insurance.

Faulu Bank Kenya

Faulu Bank Kenya is very careful about the kind of employees it presents its checkoff loan. One has to be employed by TSC/ disciplined forces/ parastatals/ civil service, & county government.
Benefits of this loan
This checkoff loan has a refund period of 84 months
One can borrow between Ksh 10,000 to Ksh 3,000,000
The top-up feature is open.

Family Bank

The family bank is another financial organization offering Checkoff loans in Kenya. To be able to recieve this loan, one has to complete the following requirements:
Present filled checkoff loan application setup in duplicates
Two recent passport size photos as well as Three copies of ID
Payslips for the last 3 months
Their bank statements for the previous three months
KRA pin certificate
Elements of Family Bank Checkoff loan
One can secure up to Ksh 3,000,000 without guarantee
This loan is to be refunded within 72 months
Enjoy insurance cover over disability & death
Loan buy off and top up features are available.

KCB Checkoff loans

KCB Bank is well known for delivering the most creative loan products and services to its customers. As a result, it has the most creative checkoff loan product.
As long as one’s business is an MOU with KCB bank, one can access up to Ksh 4,000,000 without security at just a 13% interest rate.
The repayment period is within six years.
Moreover, it is specific to secure this loan as there are no long bureaucratic procedures to be followed.

Conclusion of Checkoff Loans in Kenya

There are many financial organizations offering checkoff loans in Kenya. All that one has to maintain in mind is that their employer must be in MOU with the financial organization before securing the

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