Unbanking with Loop: The App that Offers Kenyans Hassle-Free Mobile Loans of Up to Sh 3M
The Commercial Bank of Africa’s (CBA) digital banking app Loop is now offering Kenyans loans as part of the new upgrade that boasts a set of additional features. Kenyans can now access maximum personal loans of Sh3 million and overdrafts of up to Sh100,000.
Loop was first launched in March 2017 and following customers’ feedback, CBA has improved the app in line with what the customers want.
CBA’s general manager of the new business ventures division Eric Muriuki said:
“The advancements that we are introducing now are a product of feedback from our customers over the last one year, as well as proactive measures that recognize the growing importance of the mobile phone interface in the delivery of a wide range of customer-focused services.”
The upgraded Loop app comes at a time when financial institutions in Kenya are releasing finance-oriented apps to take advantage of the increasing use of mobile phones as tools for accessing financial services.
Last year, Quantum Global Research Lab released a report indicating that Kenya was leading Africa in the use of mobile financial services.
The new version of Loop has a user-friendly interface where it takes less than four minutes to create a new account. The app is also offering new charges where it will only cost you Sh38.50 to transfer money to M-Pesa and Sh150 for a MasterCard International ATM transaction. On the other hand, there are zero-transaction fees for buying airtime, using Safaricom’s Pay Bill, and buying goods using a Till Number.
How does the Loop Loan Service Compare to other Mobile Loan Apps?
Unlike other mobile loan apps in the market, Loop not only gives you access to personal loans of up to Sh3 million but also offers you an option to receive an overdraft loan of up to Sh100,000.
An overdraft allows you to access more money than you have in your account for a short time period. The overdraft interest will only be charged on the amount you use.
In addition, while other loan apps have a fixed loan limit for all new users, Loop will calculate your loan limit based on your loop activity and your credit history.
Loop is also unique because it offers term loans from Sh50,000 to Sh3 million, an option you will hardly find on other mobile loan apps. The repayment period on the app ranges from six months to 36 months.
Most importantly, the loan application process is instant. That means that the steps are easy without the paperwork and the red tape customers are subjected to in the traditional methods of loan application.
How to Apply for a Loop Loan
In order to access a Loop loan, you will need an account if you do not already have one. Begin by downloading the app on Google Play Store or App Store.
Once you have downloaded the app on your phone, create an account and enter the required details. Some of this information includes your name, ID, and where you want to collect your loop card.
The loop card, which is a debit card, will be ready in ten minutes compared to most banks where you have to wait for two weeks. However, you can collect it from any of the following stores at your convenience as you carry out various transactions on your app.
Your Loop activity will determine your eligibility to access a loan, so you will need to make the app your main account by directing your income to the app and carrying out transactions for three months. Your eligibility to access a loan will also depend on your credit history.
If you are eligible for a loan, follow these steps:
- Click on ‘request loan’ and choose the amount you want and your preferred repayment period.
- Verify your loan application and then confirm it. Loop will then immediately email you a loan offer which you should carefully review.
- To accept or reject the loan offer, log into your app and click the Loop loan option. Follow the prompts and enter the Loop Loan Offer Reference Number.
- If you accept the offer, the amount will be credited to your Loop account.
To access an overdraft, the steps will be nearly similar.
In light of Loop’s new loan feature, CBA is promoting the use of mobile financial services in Kenya while eliminating the hassle of visiting a bank to access loans.