KCB M-PESA Personal Loan – 2023 Review

Kariuki Maina
By Kariuki Maina 11 Min Read

The Kenya Commercial Bank (KCB) and Safaricom’s M-PESA formed a partnership to develop the mobile loan service known as KCB M-PESA loan.

Contents
What is KCB M-Pesa fees and Penalties?How to Contact KCB M-Pesa customer careHow to Apply or Pay KCB Mpesa Loan.Summary InfoLoan TypeTotal Cost Breakdown (Loan Fees):Disbursement Details:Repayment Details:Eligibility Requirement:Representative Example of Loan Costs:ReviewPros:ConsFREQUENTLY ASKED QUESTIONS 1. What is KCB M-PESA? 2. What are the requirements to have a KCB M-PESA account? 3. How do I deposit or withdraw money into or out of KCB M-PESA Account? a) To deposit from M-PESA b) To withdraw to M-PESA 4. How do I check my KCB M-PESA account balance? 5. How do I check my KCB M-PESA loan limit? 6. What is the fee charged on a KCB M-PESA loan? 7. How do I borrow a KCB M-PESA loan? 8. How do I pay my KCB M-PESA loan? a) Using Safaricom Toolkit b) Using M-PESA Paybill 522559 9. I cannot access a KCB M-PESA loan. What are some of the reasons for this? 10. How do I grow my loan limit? 11. How do I access KCB M-PESA savings? 12. Which Savings accounts are available on KCB M-PESA ? 13. How I open a KCB M-PESA Fixed Savings account? 14. How I open a KCB M-PESA Target Savings account? 15. Is there a cost for opening Fixed or Target Savings account? 16. How much can I start saving on my Target Savings account? 17. How will I know that money in my savings account has matured? 18. Can I withdraw my funds before the maturity date? 19. How much interest do I earn on my savings? 20. Do I earn interest when I withdraw my savings before maturity? 21. How do I check my saved amount? 22. Can I save with KCB M-PESA if I am listed on Credit Reference Bureau (CRB)? 23. Where can I get more information about KCB M-PESA

The loans can be accessed through the MySafaricom app, the M-PESA app, and the Safaricom SIM toolkit.

What is KCB M-Pesa fees and Penalties?

In 2023, KCB M-Pesa will roll over the loan for an additional one month for an additional 8.64 percent fee if the loan term ends before repayment is made.

How to Contact KCB M-Pesa customer care

How to Apply or Pay KCB Mpesa Loan.

  • Open the Mpesa toolkit on your phone or use *334#
  • Go to Loans and Savings
  • Click on KCB M-Pesa
  • To Apply;
    • Click the Loan, then Request Loan.
    • Enter the amount you want to borrow, which should be equal or less than your loan limit.
    • Enter your M-Pesa pin and send.
  • To Pay a Loan;
    • Select Pay Loan
    • Pay from M-Pesa balance or KCB M-Pesa balance.

Summary Info

Loan Type

Unsecured Loans

Total Cost Breakdown (Loan Fees):

  • Interest Minimum: 8.75%
  • Interest Maximum: 8.75%
  • Processing fee: 0%
  • Insurance Fee: 0%
  • Withdrawal Fee: 0%
  • Late Fees: 8.75%,  Rollover
  • Other Fees: None

Disbursement Details:

  • Institution Type: Commercial Bank
  • Application Method: Digital
  • Disbursement Method: KCB M-Pesa

Repayment Details:

  • Repayment Frequency: Bullet
  • Early Repayment: Allowed
  • Repayment Method: M-Pesa

Eligibility Requirement:

  • Smartphone: Not Required
  • CRB: Must be in good standing
  • Income: No Minimum
  • Employment: Not required
  • Network: M-Pesa customer
  • History: 6 Months Mpesa account
  • Documents: National ID
  • T&C Links

Representative Example of Loan Costs:

  • Example Loan Amount: ksh100,000
  • Representative Loan Cost: 8.75%
  • Total Loan Repayment Amount: ksh108,750

This is a product of KCB Bank Kenya Limited and is regulated by the Central Bank of Kenya.

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Review

Pros:

  • Fast approval times (less than 24 hours)
  • High loan limit (up to 1m KES)

Cons

  • Low starting loan limit
  • No discount for early repayment

FREQUENTLY ASKED QUESTIONS

1. What is KCB M-PESA?

KCB M-PESA is a loans and savings product exclusively offered by KCB Bank Kenya Ltd to Safaricom M-PESA
customers.

2. What are the requirements to have a KCB M-PESA account?

Be a registered and active Safaricom M-PESA customer.

3. How do I deposit or withdraw money into or out of KCB M-PESA Account?

Money in and out of the KCB M-PESA Account is available through M-PESA

a) To deposit from M-PESA

• Go to the KCB M-PESA menu.
• Select Deposit from M-PESA.
• Enter the amount and commit.
• Your M-PESA will be deducted and your KCB M-PESA Account credited with the amount.

b) To withdraw to M-PESA

• Go to the KCB M-PESA menu.
• Select Withdraw to M-PESA.
• Enter the amount and commit.
• Your KCB M-PESA Account will be deducted and your M-PESA Account credited with the amount.

4. How do I check my KCB M-PESA account balance?

• Access the KCB M-PESA menu
• Select My Account
• You can check your account balance or request for a Mini Statement.

5. How do I check my KCB M-PESA loan limit?

• Go to M-PESA menu
• Select Loans and Savings
• Select KCB M-PESA
• Select Loan
• Select Check Loan Limit.

6. What is the fee charged on a KCB M-PESA loan?

The cost for the one month loan is 7.35%

7. How do I borrow a KCB M-PESA loan?

• Go to M-PESA menu
• Select Loans and Savings
• Select KCB M-PESA
• Select Request Loan
• Enter Amount & follow prompts to complete
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8. How do I pay my KCB M-PESA loan?

a) Using Safaricom Toolkit

• Go to M-PESA menu
• Select Loans and Savings
• Select KCB M-PESA
• Select Pay Loan
• Select to pay from M-PESA or from your KCB M-PESA Account
• Enter amount & follow prompts to complete.

b) Using M-PESA Paybill 522559

• Go to M-PESA menu
• Select Lipa na M-PESA
• Select Paybill & Enter Business & enter 522559 as Business Number
• Select Account no. & enter “Borrower’s ID number e.g. 12345678’’
• Enter amount & follow prompts to complete.

9. I cannot access a KCB M-PESA loan. What are some of the reasons for this?

• You have unfavorable credit history
• You already have an existing KCB M-PESA loan.
• Late repayment of a previous loan thus you have been blacklisted.

10. How do I grow my loan limit?

• Increase activity on your KCB M-PESA account by moving money in and out of your account.
• Increase savings on your KCB M-PESA account.
• Increase usage of M-PESA services.
• Early and prompt repayment of KCB M-PESA loans

11. How do I access KCB M-PESA savings?

• Go to M-PESA menu
• Select Loans and Savings,
• Select KCB M-PESA,
• Select Fixed Savings account,
• Select Fixed Deposit or Target Savings Account

12. Which Savings accounts are available on KCB M-PESA ?

There are two Savings accounts available on KCB M-PESA
a) KCB M-PESA Fixed savings account
This account allows you to lock a specific amount of cash for a period of up to 12 months.
b) KCB M-PESA Target savings account
This account allows you to set a target and make deposits towards achieving that target for a period of up to 12 months.

13. How I open a KCB M-PESA Fixed Savings account?

• Go to M-PESA menu
• Select Loans and Savings, KCB M-PESA
• Select Fixed Savings Account
• Select Fixed deposit
• Open Account
• Select the source of funds;
• M-PESA
• KCB M-PESA
• Enter amount (minimum amount needs to be Kshs.500 and above)
• Enter period (1 up to 12 months)
• Enter M-PESA PIN and complete the transaction
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14. How I open a KCB M-PESA Target Savings account?

• Go to M-PESA menu
• Select Loans and Savings
• Select KCB M-PESA
• Select Fixed Savings Account
• Select Target Savings Account
• Select Open Account
• Select source of funds;
• M-PESA
• KCB M-PESA
• Enter Target amount you intend to save for the period (minimum amount is Kshs.1,000)
• Enter period (1 up to 12 months)
• Enter initial deposit amount (not less than Kshs.50)
• Enter M-PESA PIN and complete the transaction

15. Is there a cost for opening Fixed or Target Savings account?

No. Opening is free.

16. How much can I start saving on my Target Savings account?

Upon successful opt-in, the minimum amount to begin saving is Kshs.50, thereafter you can save with any amount you
desire. Once you have deposited the savings amount into the account, you will receive an SMS acknowledging the
amount you have saved and period chosen.
***for savings exceeding Kshs. 250,000.00, a customer will be requested to visit any KCB branch to submit further
documentation for identification purposes.

17. How will I know that money in my savings account has matured?

At the end of the period, an SMS will be sent to you from KCB M-PESA informing you of the maturity, the amount saved
plus interest earned

18. Can I withdraw my funds before the maturity date?

Yes, you can access your funds before the end of the period. Target savings can be unlocked anytime except;
a. Opening date
b. Any day when a Top-up is done

19. How much interest do I earn on my savings?

Money saved in the Target and Fixed Savings accounts earn interest at 6.3% p.a.

20. Do I earn interest when I withdraw my savings before maturity?

For Target Savings you earn accrued interest up to the date of withdrawal however for Fixed Savings you forfeit the interest.

21. How do I check my saved amount?

To track progress of your savings;
• Go to M-PESA Menu
• Select Loans and Savings
• Select KCB M-PESA
• Select My Account
• Select Check Balance
• Enter M-PESA PIN and submit

22. Can I save with KCB M-PESA if I am listed on Credit Reference Bureau (CRB)?

Yes. If you are listed on CRB you can still save with KCB M-PESA.

23. Where can I get more information about KCB M-PESA

• Call : 0711 087000 or 0732 187000
• WhatsApp : 0711 087087
• Visit the KCB Bank website www.kcbgroup.com or Safaricom website www.safaricom.co.ke
• Visit your nearest KCB Bank branch in Kenya

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