Zenka Loan App is a prominent player in Kenya’s financial technology sector. Zenka, since its inception in November 2018, has changed the concept of digital lending in Kenya by offering convenient and accessible loan services to Kenyans. What makes Zenka stand out is its SMS-based loan service, which caters to individuals who may need access to smartphones or the internet, thereby bridging the digital divide in financial services.-Zenka SMS Loans
What Is Zenka’s SMS Loans
Zenka’s SMS loan service is tailored for simplicity and accessibility. Using any phone, specifically the “Kabambes,” Kenyans can apply for a loan without needing a smartphone or internet connectivity. This service is particularly beneficial for people living in areas without internet access or those who prefer the simplicity of SMS transactions.
As one of Kenya’s fastest-growing fintech companies, Zenka has made significant strides in providing emergency loans in Kenya to its customers. The platform’s commitment to easy access and flexible loan options has made it a go-to choice for many Kenyans seeking financial assistance.
Zenka SMS Loans Requirements and Application Process
Before diving into the application process, it’s crucial to understand the eligibility criteria for a Zenka loan. Here is what Zenka will want you to present before using its wider services:
- Be a Kenyan Citizen with a proof of National Identification Number.
- Meet the Age Requirements(at least 18 years of Age)
- Own a Smartphone, as the loan application can be completed via SMS; a smartphone is required for initial registration.
- Safaricom Line Registered with Mpesa for loan disbursement and repayment.
Step-by-Step Application Process
Applying for a Zenka loan via SMS is a simple and user-friendly process:
- Dial USSD Code: Begin by dialing *841# on your phone.
- Enter Your 4-Digit PIN: Input your security Key or PIN to access your account.
- Loan Application: After entering your PIN, you’ll have options such as ‘Apply for full limit’ or a specific amount you need. Select the option that suits your needs.
- Loan Offer Display: Zenka will then display the amount you qualify for. Choose the loan amount you wish to borrow.
Zenka SMS Loans Loan Details and Repayment
Zenka offers a flexible range of loan amounts, catering to varying financial needs. You can borrow between KSh 500 and 50,000, making it suitable for small-scale and substantial financial requirements. The interest rates are equally flexible, ranging from 0% to 29%. This rate variability allows for a tailored approach to lending, where the loan cost aligns with the borrower’s circumstances and loan amount.
The Repayment Process via Mpesa
Repaying a Zenka loan is straightforward and utilizes the widely-used Mpesa platform:
- Accessing Mpesa: Open the Mpesa menu on your phone.
- Lipa na Mpesa Option: Choose the ‘lipa na mpesa’ (Pay with Mpesa) option.
- Pay Bill Selection: Opt for the ‘pay bill’ option.
- Entering Zenka Paybill Number: Input Zenka’s paybill number, 979988.
- Account Number and Amount: Enter your Zenka account number and the amount you wish to repay.
- Completing the Transaction: Confirm the details and complete the transaction by entering your Mpesa PIN.
Alternative Repayment Method
For those who prefer to repay via the USSD code, the process is equally user-friendly:
- Dial USSD Code: Start by dialing *841#.
- Enter PIN: Input your 4-digit PIN to access your loan details.
- Repayment Options: Select the ‘Repay’ option to view your current balance and choose ‘Repay total amount.’
- Follow Payment Link: A payment link will be provided to complete the repayment process.
Zenka offers a repayment period of either 61 days or 180 days. It’s important to note that the loan must be repaid in full by the end of this period to avoid additional interest or penalties.
Advantages of Zenka SMS Loans
- Zero Interest on the First Loan: Zenka offers an interest-free first loan, making it an attractive option for first-time borrowers.
- Extended Loan Periods: With up to 61 days of repayment periods, Zenka provides more flexibility than many other loan apps.
- Loan Top-Up Options: If you haven’t reached your loan limit, Zenka allows you to top up your loan, giving you greater control over your finances.
- Flexible Repayment Extensions: Zenka offers the option to extend your loan repayment period, which can help you manage your finances more effectively and avoid higher interest rates.
PEOPLE ALSO ASK:
How much loan can I get from Zenka?
- You can borrow between KSh 500 and KSh 50,000. The amount you qualify for will depend on several factors, including your credit history and repayment behavior.
How do I increase my Zenka limit?
- To increase your credit limit with Zenka, it’s crucial to maintain a good repayment history with Zenka and other creditors. Regular borrowing and timely repayments can positively influence your credit limit.
How do I get a Zenka PIN?
- If you’ve forgotten your Zenka PIN, you can reset it by providing your full name, ID number, phone number, date of birth, email address, and the value of your last Zenka loan. Zenka will verify this information and send you a new PIN.
How do I get a Zenka loan?
- To get a Zenka loan, download the Zenka Loan App or use the USSD Code *841#. New users need to register before applying for a loan.
What are the requirements for applying for additional loan amounts?
- To qualify for additional loan amounts, you must have an active loan with Zenka, and your loan principal must be below your credit limit.
How can I apply for a loan extension with Zenka?
- To apply for a loan extension, you need an active loan up to 30 days past due. Extensions can be requested from the first day the loan is active up to 30 days past the due date.
Are there any penalty fees for late repayment of Zenka loans?
- Zenka applies a 1.5% penalty rate from the outstanding principal per each day of delay in loan repayment. It’s essential to repay loans on time to avoid these penalties and any negative impact on your credit history.
What happens if I cannot repay my Zenka loan on time?
- If you need more time to repay your loan, Zenka offers features like loan extensions to help manage your repayments. However, it’s crucial to communicate with Zenka’s Collection Service to explore available options. Delayed payments may be reported to Credit Reference Bureaus.
Zenka’s SMS loan service stands out in the Kenyan fintech sector for its accessibility, flexibility, and customer-centric approach. Whether it’s the ease of application, the range of loan amounts, or the convenient repayment options, Zenka caters to a diverse clientele, ensuring that financial assistance is just a few clicks away. For anyone seeking a reliable and user-friendly loan service, Zenka’s SMS-based loans offer a compelling choice.