This archive report was first published on 22 July 2019.
Published on July 22, 2019, loan apps have become a staple in Kenya's financial landscape. Their instant availability has made them a go-to option for many Kenyans looking to shore up their financial needs.
However, while their popularity rises, the costs associated with these loan apps have largely been left unknown. In this article, we take a closer look at the approximate amounts various loan apps will charge you if you take a Sh. 50,000 loan on them.
From Mshwari to Tala, and from KCB Mpesa to Equitel, we've compiled a list of the charges you can expect to pay for a Sh. 50,000 loan. Here's a breakdown of the costs:
- Mshwari: Sh. 3,750 for a loan payable in one month
- KCB Mpesa: Sh. 1,955 for the same loan
- Tala: Sh. 7,500 plus a Mpesa Pay bill charge of Sh. 220
- Barclays Timiza: Sh. 585 plus an interest rate of 5 per cent
- Equitel: Sh. 1,130 plus a processing fee of Sh. 500 and a duty of Sh. 50
- Cooperative MCoop Cash: Sh. 580, making it the most discounted mobile loan app in Kenya
It's worth noting that while getting a mobile loan is easy, defaulting on these loans can have severe consequences, including getting blacklisted and the possibility of getting auctioned.
