There are many options to take out a loan. Whether your need for a loan is big or small, it’s important to use the right loan provider for your needs. Here are a few options for what kind of loan may work for you.
What should I do when I need a loan for…
… a small, immediate financial need like a medical bill, supplies for your business, school fees or utilities? (2,000 to 40,000 KSh)
- Mobile lenders are best used for immediate financial needs. Mobile loans typically range from 2,000 to 40,000 KSh and are the fastest loan option. For example, you can apply for a Tala loan in minutes with just a smartphone and it takes only seconds to receive your loan in your M-Pesa account.
… a medium sized business investment like a plot of land, green houses, small pick-ups? (80,000 KSh to 999,000 KSh)
- Chamas are typically used for loans between 80,000 Ksh and 100,000 Ksh. Chamas are a type of micro-savings cooperative where all members of the chama save money through one chama and then have the option to take out loans with that savings pool at favorable interest rates.
- Loans from saccos are great options for medium sized business needs. Saccos require membership and are generally restricted to specific industries or employers.
… a big purchase like a storefront, car, house or lorry? (1 Million KSh +)
- People generally use bank loans for big purchases that require a lot of capital (or cash) upfront. Banks offer the largest loan amounts, but the applications for them are usually longest and take the most amount of time. It’s important to give yourself plenty of time to plan ahead for a bank loan.
Remember, all loans have different terms and fees so make sure to review the terms before you take out a loan.