Getting a loan in Kenya sometimes can be frustrating due to the processes involved resulting in delays in approval and disbursement. This results in missed opportunities if you can get the money on time. However, there are few secrets of how to get a loan faster In Kenya.
This list comprises some key factors that lenders such as banks and saccos consider before giving you a loan. Access to credit is an important element that enables us to meet emergency costs and conduct investments
Hence, the easier and faster you can access a loan, the better it is to meet your needs. Below is a list of secrets of how to get a fast loan in Kenya.
1. Good CRB Score
The term CRB has become common with Kenyans due to its extensive use in the credit market. Also known as the Credit Reference Bureau, this is a body whose mandate is to maintain the credit information of Kenyans.
They achieve this by collecting credit information from the financial institutions in the country such as banks, saccos, microfinances, and digital lenders.
Upon receipt of this information, CRB analyzes it and then allocates a credit score. This is the score most lenders review and uses when giving you a loan. To get a good score, you should ensure you are paying your loans on time without default.
Hence, having a good score indicates you are a good borrower and most financial institutions will be comfortable giving you a loan faster. The score ranges from 200 to 900 where 200 is the lowest and 900 is the highest. As per the market, anything below 400 is considered a low or poor score. Learn more on how to check your CRB score here.
2. High Account Turnovers
Turnover is the amount of deposits and withdrawals in your account for a specific duration. Normally. Most institutions do the average such as monthly or yearly to determine how much loan you qualify.
Hence, having high account turnover is among the secrets of how to get a loan faster in Kenya. Almost all lenders consider turnovers as an element of loan eligibility and amount. The higher the turnovers, the higher the loan limit you can access.
Turnovers also measure your ability to pay the loan. You could have all the other factors okay such as CRB score but cannot pay. This could be due to borrowing a higher amount than your transactions can support.
Most institutions check turnovers by analyzing your statements. These could either be bank statements or mobile money statements such as M-pesa. Hopefully, now you know why banks always ask for your statements when you need a loan.
3. Active account
Some financial institutions have a condition that your account must be active for a specific amount of time such as 6 months or 1 year before you can qualify to get a loan.
The reason for this is both quantitative and qualitative. On the qualitative element, they want to review your behavior such as if you are serious and consistent. Secondly, the quantitative elements allow them to review your transactions turnover.
Hence, if you want to get a loan faster in Kenya, you should ensure your account is active.
4. Availability of loan security
Most financial institutions In Kenya require loan security to give you credit. Loan security could be in many forms such as both tangible and intangible. Some of the most used security in Kenya include land through a title deed, car log book, cash cover, guarantee, and stocks.
Although there are those loans you can access without security such as mobile loans, their limits tend to be lower. Most of the bigger limits need securing for easier and faster access.
Hence, you should strive to get security if you want to get a loan faster in Kenya. The amount of the loan is also dependent on the security value. If you want a higher amount, your security must also correspond.
5. Use of the loan
One of the requirements that most financial institutions undertake is to understand the use of the loan. Some of the most common uses include asset financing, business expansion, or trade financing.
You are likely to get a loan faster if its use is to create more value such as expanding the business. However, loans for consumption purposes will likely delay.
Hence, the better use you have for the loan, the higher the chances of approval.