Step-by-step Guide to KCB Mpesa Loan Application

The KCB MPESA Loan product was created in partnership between Safaricom PLC and Kenya Commercial Bank.

Safaricom’s mobile-based account allows customers to get instant loans at low interest rates of 1.16% per monthly with a one-off negotiation charge of 2.5%.

Customers can free transfer money into and out of their accounts and also save money in the KCB MPESA accounts. You can earn up to 7% interest per annum by opening a Target Savings or Fixed Deposit Account.

KCB MPESA Account Benefits

These are the benefits of a KCB MPESA account

• You can borrow money immediately, without needing to save.
• The KCB MPESA Account is used to disburse loans
• Flexible loan repayment terms are available for one month, three-months, or six months.
• Savings interest is 2% per annum
• Savings are the basis of personal accident insurance benefits
• You can easily save and withdraw money through the MPESA menu or KCB Mobi Agent.
• You can only save KES 1, with a maximum savings of KES 1,000,000

Eligibility

These are the requirements to open an account:

• National ID, Military ID and Kenyan Passport. Diplomatic ID (Registered by IPRS) or Alien ID.
• Register as a Safaricom MPESA Customer
• An active MPESA account.

How do I open a KCB MPESA account?

• On your Safaricom phone, dial*844#.
• Accept these Terms and Conditions.
• KCB will send you an SMS containing your PIN.
• To access your account, dial *844# once more and enter the PIN.

Types of KCB MPESA accounts

1. Fixed Savings Account

This account allows for you to lock in a set amount of cash over a specified period.

Features

• Once the amount has been saved, there is no need to top up.
• The loan limits period is 1, 3, 6 and 12 months, with a minimum amount of KES50
• Any interest earned is forfeited if the withdrawal is made too soon or too early.
• Fixed deposit savings are also eligible for a life insurance benefit.

2. Target Savings Account

You can set a savings goal or target with this account and deposit money towards that goal.

Features

• To achieve your goal, you will need to continue contributing.
• You can access the account with standing orders from MPESA Account or KCB MPESA Account.
• Variable interest rates that depend on loan repayment periods, such as one month (3%), three-months (4%), six-months (5%), twelve months (6%), and twelve months (5%).
• Cumulative interest

How do I request a KCB MPESA loan?

To request a loan:

• Enter your secret PIN by dialing *844#
• Enter the amount you want to borrow by selecting “Loan” and “request loan”.
• Choose the preferred loan repayment term (1, 3, or 6-months).
• KCB MPESA will approve the transfer of funds to your KCB MPESA account.

How do I repay my KCB MPESA loan?

The KCB MPESA and MPESA accounts allow you to repay your loan in installments or in full. To repay your loan.

• Enter your secret PIN by dialing *844#
• Select the “Loan” menu and then the “Pay loan” menu option
• You can choose to pay from the KCB MPESA or MPESA accounts.
• Follow the prompts to complete your transaction.

How to send money from MPESA into your KCB account:

The steps below will show you how to transfer money from MPESA into your KCB account.

• Visit MPESA
• Payment Services
• Pay Bill
• Enter 522522 for the Business Number
• Enter Your KCB Acct Number.
• Enter the amount you wish to transfer
• Enter your MPESA pin