Loan amount for Ksh 20,000 salary in Kenya

Most people in Kenya earn a salary of Ksh 20,000.Though the salary looks small, there is a way you can multiply it and get a decent loan for personal growth. The loan amount for this money can be as low as Ksh 10,000 or as high as Ksh 2 million depending on your savings and collateral accompanying your documents.

In Kenya,if you want the loan to be in millions, you have to save first or buy a property which you can use as collateral. There are people who buy a plot forKsh100,000 and after a short period, the land appreciates to Ksh 1.5 million. Using a collateral for this land,you can get a loan of up to Ksh 1.5 million.

The secret of getting high amount of loan is by saving your money in a Sacco. Save Ksh 5,000 every month in a Saving account for at least 5 years, then take a loan against your savings. Or instead of putting your money in a Savings account, buy shares. If you save Ksh 5,000 monthly, by the time 5 years are over, you’d have saved Ksh 300,000.Most Saccos in Kenya award a loan 4 times your shares. This means that you will get a loan of up to Ksh 1.2 million if save Ksh 5,000 monthly for 5 years.If you save for 10 years,you will get a loan of up to Ksh 2.4 million.

Make sure to join a reliable Sacco like Harambee Sacco,Safaricom Sacco,Hazina Sacco or Stima Sacco. You will be sure your money is safe.

If you prefer to take a loan from the bank, you have to provide payslips for 3 previous months. You should also be a customer of that bank. Banks ensure that you remain with a third of your money, they deduct you up to 3/4 of the net salary. It means they will be deducting at most Ksh 12,000 from your payslip.The deductions take up to 5 years.This means that the maximum loan a bank will give you is Ksh 700,000.

If you compare banks and Saccos, you will realize that loans offered by Saccos are the best,they also attract lowest interest rate and have flexible payment terms.

Don’t take a loan from any Microfinance Bank in Kenya, most of them are not good.