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How to Get a Loan from Equity Bank in Kenya

By Oluchukwu Ikemefuna

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Do you need an urgent cash boost for any emergency or probably to finance a new idea? Well, an Equity Bank loan in Kenya will get you out of such fixing situations.

One of the popular choices for most of them will be the Equity M-Pesa Soft Loan dealing in dishing out loans quickly and conveniently through your mobile phone.

What makes Equity Bank stand out from the rest is that it prides itself on being very transparent and has customer-friendly terms that go a long way in facilitating one’s financial planning. On your part, before application, it’s quite important to understand the Equity M-Pesa Soft Loan interest rate. 

These rates are designed such that they have to be reasonably affordable for one to manage his or her repayments without putting undue stress into his life.

This article is a step-by-step guide on how to apply for an Equity M-Pesa soft loan, the requirements involved, and an explanation of the applicable interest rates.

By the end of this article, you will understand how to use this service effectively and responsibly to obtain financial solutions. So let’s dive in!

What Are Equity M-Pesa Soft Loans?

Equity M-Pesa Soft Loan

Equity M-Pesa Soft Loans are short-term loans not collateral secured, offered by Equity Bank in Kenya through the M-Pesa mobile money platform. They are provided for quick financial support to individuals and small businesses.

It is easy to apply and is done on a mobile phone, allowing any person, even from the remotest areas, to access the platform. Loan amounts and interest rates are customized depending on one’s credit history with M-Pesa and Equity Bank.

Mostly, these loans are used in case of an emergency, to fund some small business, or to meet personal needs. Repayment terms are flexible, with borrowers allowed to repay small installations at will.

That is the probable reason why many Kenyans would always go for Equity M-Pesa Soft Loans whenever in need of quick financial solutions, due to the ease of access and fast disbursement.

Read Also –Top 10 Loan Apps for Urgent Loans in Kenya

What are the Requirements for Applying for Equity M-Pesa Soft Loan?

There are specific criteria to be met and certain documents required in applying for an Equity M-Pesa soft loan. Here are the general requirements:

  1. You must be at least 18 years old.
  2. You must be a registered M-Pesa user by Safaricom.
  3. You should have an active Equity Bank account that is linked to your M-Pesa.
  4. Your M-Pesa should reveal a good transaction history.
  5. You should have a valid Kenyan national identification document, either an ID card or passport.
  6. Your credit history will be checked. In this regard, please note that this shall include, but won’t be limited to your transaction history with M-Pesa and Equity Bank.
  7. Evidence for a regular income or employment may be required to prove one’s ability to repay the loan.

The specific requirements vary slightly depending on the amount of the loan and other factors. One may contact Equity Bank directly or go to their website for accurate and detailed information.

How to Apply for an Equity M-Pesa Soft Loan

An application for an Equity M-Pesa Soft Loan is quite simple and can be done using your mobile phone. Here is the step-by-step process to guide you through applying for a loan:

Step 1: Check Eligibility

Before applying for an Eazzy Loan, first check whether you are eligible. Eligibility usually applies in case of fulfilling one of the following requirements:

  • You are a registered user of Safaricom M-Pesa;
  • You have at least one active Equity Bank account that can be accessed through M-Pesa.
  • You must have a clean transaction record on your M-Pesa.
  • You must have a valid identification document issued by the Government of Kenya, such as an ID card or your passport.

Step 2: Registering for Eazzy Loan

If you are eligible, you can use the following process to register yourself for an Eazzy Loan:

  • Get the USSD Code: On your mobile phone, dial the code *555# and then press the call button.
  • Select “Eazzy Loan”: From the menu options displayed, select “Eazzy Loan.”
  • Accept Terms of Use: Read through the terms of use for the loan service and accept them.
  • Create a PIN: After that, the system will ask you to create a confidential personal identification number that you will be using to log in to your Eazzy Loan account. Generate a PIN that is easy for you to remember but hard for others to guess.
  • Link Your M-Pesa Account: You will thereafter be required to link your M-Pesa account with your Eazzy Loan account by following the on-screen display.

Step 3: Applying for an Eazzy Loan

After successfully registering for an Eazzy Loan, you can apply for a loan at any time by following the procedure outlined below:

  • Dial *555#: On your mobile, dial *555# and press the call button.
  • Select “Eazzy Loan” Option: In the menu, select the “Eazzy Loan” option.
  • Select “Request Loan”: In the Eazzy Loan menu, select “Request Loan.
  • Select Loan Amount: Enter the amount of money you want to borrow. Eazzy Loan has varying limits on loans depending on one’s eligibility and transaction history.
  • Confirm Loan Request: You will be shown your loan details, for example, the amount and fees that are to be charged on your loan. Check if everything is okay then confirm your loan request.
  • Get Loan: Your loan, upon approval, will be directly disbursed to your M-Pesa account. You will receive a notification that your loan has been dispatched.

By the steps outlined above, you will comfortably apply and manage the Equity loan-to-cash soft loan in meeting any financial Needs.

Also Read – Latest Update on How to Apply for Emergency KCB Mpesa Loans in 2024

What is the Equity M-Pesa Soft Loans Interest Rate?

The Equity M-Pesa soft loans interest rate may differ, but it will largely remain pegged to a few variables like the amount of the loan and the time taken for its repayment. 

In general, however, it will stay between 1% and 10% per month for all loans on M-Pesa available through Equity Bank.

Note that interest rates, terms of repayment, and any late fees charged shall be changed; the lender has to be contacted for the most recent information.

How Long Does it Take to Receive a Loan Approval? 

The general approval time for an Equity M-Pesa soft loan is usually very fast, for a digital process. In actuality, the approval process following the application only takes a few minutes. The steps involved are:

  1. Application Submission: You apply for the loan from your Equity Bank via mobile banking Eazzy Banking app or USSD code.
  1. Automated Valuation: The system automatically evaluates your creditworthiness by your transaction history, M-Pesa usage, and other financial behavior.
  1. Approval and Disbursal: In case of approval, the amount borrowed is almost instantly disbursed to your M-Pesa account.

Put simply, the whole process, from application to disbursement, takes only some minutes at best, thus making the option pretty convenient for any person in need of quick funds.

Read Also – How to tap into FULIZA loans 2024

How to Repay Equity M-Pesa Soft Loans

The Equity M-Pesa Soft Loan is advanced on borrowing, and you can conveniently repay your Equity M-Pesa Soft Loan through M-Pesa, Equitel Line, or Equity Bank branch.

Here’s how:

1. Using M-Pesa

  • On your phone, navigate to the M-Pesa Menu. 
  • Select “Lipa na M-Pesa”.
  • Choose “Pay Bill”.
  • Enter the business number 247247.
  • As the account number, enter the number of your Equity Bank account.
  • Input the amount you want to pay in repayment for the loan.
  • Enter your M-Pesa PIN for verification.
  • Confirm the details and complete the payment.

2. Through Equitel Line

  • Go to the Equitel Menu on the phone.
  • Proceed to “Eazzy Loan.”
  • Select “Pay Loan.”
  • Choose whether in part or full settlement.
  • Choose the account to be used to repay.
  • Input the amount you wish to pay.
  • Check the details for correctness.
  • Enter your PIN to confirm payment.

3. Bank Deposit

  • Visit any Equity Bank branch and directly deposit the amount of repayment of the loan into your Eazzy Loan account.

Note: Good credit standing increases your chances of getting a higher limit in the future!

Benefits of Equity M-Pesa Soft Loan 

Below are some of the advantages that best suit Equity M-Pesa Soft Loan for any person in need of quick and convenient financing:

  1. Convenience: You can apply and get loans right into your M-Pesa account from the comfort of your space at any time of the day or night without visiting a branch or filling out forms.
  1. Flexibility: Repay loans using M-Pesa or Equitel, with flexible terms of repayments that let one choose the fitting schedule for their financial state.
  1. Quick access: Get loans instantly; it is a very good option in case of emergencies—hospitalization, school fees, or business.
  1. Interest rates are affordable: Enjoy very competitive interest rates without any hidden fees, which ensure that you only pay for what you borrow.
  1. Boosts credit rating: On-time repayments are a good way to build your credit history, therefore enabling you in the future to access even greater loans at the best interest rates possible. You also build financial credibility.
  1. No security or guarantors required: There is no collateral required, hence making it easier to get credit, since your loan will be based on your creditworthiness and ability to repay, not on assets or references.

These benefits make the Equity M-Pesa Soft Loan a very valuable financial tool toward which people would gravitate in search of quick, convenient, and cheap credit.

Also Read – Kwato Loan in Kenya: How to Access it

How to Improve Your Chances of Getting Approval for an Equity Bank Loan?

Here are some tips that can enhance your potential for approval of a loan from Equity Bank:

  1. Check your credit score; you should ideally have a good credit history with CRBs.
  1. Your good account history; deposit money regularly and avoid overdrafts.
  1. Meet eligibility criteria; check that you are eligible for the particular loan.
  1. Provide accurate information: Fill out the form accurately and truthfully for applying for a loan.
  1. Prove you can repay; stable income with a clear repayment plan.
  1. Avoid multiple loan applications; only apply for loans when necessary to stop affecting your credit score.
  1. Build a long-term relationship; long-term banking relationship with Equity Bank.
  1. Have an active account; use your account regularly to show some financial activities.
  1. Monitor credit reports; for accuracy and updating.
  1. Seek advice, if need be, from a financial advisor or a relationship manager from Equity Bank.

The point here is that meeting these criteria does not give one a guarantee for the loaning, but it gives them a better chance of getting approved. The bank carefully looks into your creditworthiness and your loan application through Equity Bank.

Final Thoughts 

A loan from Equity Bank in Kenya, especially through their convenient Equity M-PESA soft loan service, makes obtaining financial needs very easy.

The processes for application are quite competitive in interest rates and, hence, very accessible to help people in need of quick financial help.

In case of emergencies or other financial plans, Equity Bank has your back. For more insightful tips and helpful finance tips, drop your comments below.

For more updates and engaging content, find us on Facebook: Silicon Africa, on Instagram: Siliconafricatech, and on Twitter: @siliconafritech. We care about your financial empowerment!

Frequently Asked Questions 

What is the maximum amount of money i can loan from Equity Bank?

The amount depends on one’s credit history and banking profile, ranging from KES 1,000 to KES 500,000.

Can one get a loan from Equity Bank if not a salary earner?

Yes, Equity Bank offers loans to non-salary earners, like business owners and farmers.

Do I need collateral to get a loan from Equity Bank?

No, you do not need collateral for most loans from Equity Bank.

How do I check my loan status?

You can check the status of your loan by dialing *247#, through the Equity Bank mobile app, or via their website.

What if I fail to repay my loan?

If you do not repay your loan, it may affect your credit score and you may incur some penalties if you default. Thus, repayment on time is also important.

Reference 

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Onyinyechi Ikemefuna
Onyinyechi Ikemefuna

Ikemefuna Onyinyechi Patience, a skilled Content Writer hailing from Anambra State Nigeria, holds a Higher National Degree in microbiology from Federal Polytechnic Oko, Anambra. Armed with robust research and SEO expertise, she excels in crafting articles spanning technology, finance, healthcare, education, and lifestyle. Her work stands out for its ability to authentically inspire and engage while inciting action. Beyond her writing prowess, Ikemefuna finds joy in reading, exploring movies, and delving into continuous research, contributing to her growth as a proficient writer.

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