Little Pesa Loans in Kenya, how to apply, interest rate and repayment period

140

Little Pesa is a financial institution that offer short term loans to its customers. The loans attract interest of as low as 4% per year. Repayment period ranges between 7 days and 62 days.

If you want cheap mobile loans, Little Pesa is where to get one.

SHORT TERM LOANS

  • Loan available for 7 days, 15 days, 30 days and 62 days.
  • Loan limits: Minimum: Ksh 5,000 Maximum: Ksh 200,000
  • No Processing Charges or Hidden Costs!
  • Competitive Interest Rates of 4%, 6%, 8% & 18% for Loan Tenures of 7, 15, 30 and 62 days respectively
  • No Questions asked!
  • Flexible Repayment of Loans through our full or partial repayment module.
  • No Security Required!
  • Three Top ups available within your approved limit across all loan tenures!
  • 100% Interest Refund on every 7th loan provided the previous six loans are paid on or before the due date.
  • Referral Bonus available for referring Colleagues/Friends.

How it works

Sign in

– Input your PIN.
– Choose Short Term Loans option.
– Click on ‘Apply’ Button.
– Request loan
– Your loan limit is displayed.

Loan Amount & Duration

– Select Loan Duration and Input Loan Amount.
– Accept Terms & Conditions & Request loan.
– Confirmation Pop up appears.

Loan Disbursement

– Click Apply and your M-PESA account is credited instantly!

Requirements to get short term loan

Just ID Copy, Pay slip and Safaricom Mobile number. On approval, you will get an SMS from Little Pesa specifying the loan limit approved.

How to activate your account

The account can be activated by entering your ID n number and mobile number. Upon activation, you will receive One Time PIN (OTP) from Little Pesa and once you enter the said OTP, you will be prompted to change the PIN to four digits of your choice.

Interest rates for the loan

7 days loan –4% flat, 15 days loan –6% flat, and 30 days loan –8% flat.

How interest is charged

The Interest is upfront i.e., deducted from the loan amount. For example, if you apply for a loan of Ksh 10,000 for a period of 30 days, interest of Ksh 800 and disbursement charge of Ksh 60 shall be deducted from the loan amount and you will be disbursed Ksh 9,140. On due date, you will need to pay only Ksh 10,000.

Loan Limits

Loan limits are based on your Net Pay—limit is usually 30% to 50% of your net pay. The maximum loan limit is capped at Ksh 200,000. However, you can avail a minimum loan of Ksh 1,000 within your limit.

When to top up your loan

Yes. Three Top Up loans across all loan tenures (7 days, 15 day & 30 days) are available within your limit till the due date of the loan without being required to clear the outstanding balance first.

Little Pesa Paybill number and how to repay the loan

You can repay your loan by tapping Repay Loan Icon on our App’s Home screen or through our USSD by dialing *483*93#. Safaricom M-Pesa screen will appear in our App and USSD for you to enter your M-Pesa PIN and repay the loan. Additionally, you can repay your loan through our Paybill no. 755141 – your mobile no. will be your account no.

Penalty for not repaying the loan in time

If you are not able to repay the loan within the stipulated time, there is a provision for one-time automatic roll over of the outstanding with a nominal extra interest of 2% over the prevailing rate for another tenure. 

PRODUCT FINANCING

This is a loan provided to buy items like electronics and smartphones. The loan amount limit is Ksh 300,000. Repayment period is 3 to 12 months.

Features of the loan

  • Loan Repayment spread over 3 – 12 months.
  • Loan Amount available up to Ksh 300,000
  • Competitive Interest Rates of 5% p.m. for 3 months, 4.5% p.m. for 6 months, 4% p.m. for 9 months and 3.5% p.m. for 12 months
  • No Processing Charges or Hidden Costs
  • 10% Down payment required

How it Works

Sign in

– Input your PIN
– Choose Product Financing option.
– Click on ‘Apply’ Button.
– Request loan
– Your loan limit is displayed.

Supplier, Item Details, Loan Duration & Amount

– Select Supplier, input Item Details, Loan Duration and Amount.
– Confirm Terms & Conditions & Request loan.
– Confirmation Pop up comes- indicating Down payment & Monthly Instalment.

Loan Application and Product Delivery

– Click Apply, M-PESA Pop up for Down payment comes. After you have paid Down payment, you get a message confirming date and amount of monthly equated instalments.
– Your desired product is delivered to you!

Requirements to get the loan

After signing up, please send your ID Copy, latest Pay slip (if applicable), Bank and MPESA statements for the last 3 months. On approval, you will get an SMS from Little Pesa specifying your approved loan limit. In case of Rejection, you will also be advised. 

How to activate your account

The account can be activated by entering your ID no. and mobile no.  Upon activation, you will receive One Time PIN (OTP) from Little Pesa and once you enter the said OTP, you will be prompted to change the PIN to four digits of your choice. In case, you are already active under our Short-Term Loan Product, you will not receive a new PIN on activation and the existing PIN will work for all the products.

Interest rate for the loan

3 Months –5% p.m.; 6 Months- 4.5% p.m.; 9 Months-4 % p.m.; 12 Months-3.5% p.m. 

Paybill account for product finance

Please press Product Financing button on your App and then Apply and select the Supplier, input item details, and the period and amount of loan. You will get an MPESA trigger to pay 10% of the amount of the loan applied as down payment which is adjusted towards your loan repayment. In case, the trigger does not come for any reason, you can make the down payment through our Repay button or through LIPA NA MPESA – Our Paybill no. 172555 Account no. your mobile no.  After you have made down payment, you can take delivery of the product. 

How the installments are calculated

You need to pay monthly equated instalment. It is computed taking into account principal plus interest minus down payment divided by number of months. e.g., if you apply for a loan of Ksh 100,000 for a period of 6 months, down payment is 10% i.e., Ksh 10,000 and monthly equated instalment is Ksh 19,500 i.e., 100,000 -10,000 +27,000/6. 

Product Financing loan limit

Loan limits are fixed at maximum 200% of the Net Pay/Average monthly income subject to a maximum loan limit of Ksh 300,000.

Penalty for not repaying the loan on time

If you are not able to repay the loan within the stipulated time, you shall be charged extra interest of 2% on the overdue amount.

FLEXIPAY

Loan Repayment spread over 3 – 12 months.

Loan Amount available up to Ksh 300,000

Competitive Interest Rates of 6% p.m. for 3 months, 5.5% p.m. for 6 months, 5% p.m. for 9 months and 4.5% p.m. for 12 months

No Processing Charges or Hidden Costs!

Only post-dated cheques required!

Flexipay loans shall enjoy interest refund of 0.5% p.m. provided all instalments are paid on time.

No Downpayment required.

Option to choose installment date.

Requirements for getting the loan

After signing up, please send your ID Copy, latest Payslip (if applicable), Bank and MPESA statements for the last 3 months. On approval, you will get an SMS from Little Pesa specifying your approved loan limit. In case of Rejection, you will also be advised. 

How to activate the account

The account can be activated by entering your ID no. and mobile no.  Upon activation, you will receive One Time PIN (OTP) from Little Pesa and once you enter the said OTP, you will be prompted to change the PIN to four digits of your choice. In case, you are already active under our Short-Term Loan Product, you will not receive a new PIN on activation and the existing PIN will work for all the products.

Flexipay interest rates

3 Months –6% p.m.; 6 Months- 5.5% p.m.; 9 Months-5 % p.m.; 12 Months-4.5% p.m. 

How installments are calculated

You need to pay monthly equated instalment. It is computed taking into account principal plus interest minus down payment divided by number of months. e.g., if you apply for a loan of Ksh 100,000 for a period of 6 months, down payment is 10% i.e., Ksh 10,000 and monthly equated instalment is Ksh 20,500 i.e., 100,000 -10,000 +33,000/6.

Loan limits

Loan limits are fixed at maximum at 200% of the Net Pay/Average monthly income subject to a maximum loan limit of Ksh 300,000.

How to repay the loan and the paybill number

You can repay your loan by tapping Repay Loan Icon on our App’s Home screen. The instalment due can be repaid by tapping Full Repayment (instalment amount due) or Custom button ( for partial or excess repayment).  Safaricom M-Pesa screen will appear in our App for you to enter your M-Pesa PIN and repay the loan. Additionally, you can repay your loan through our Paybill no. 172555 – your mobile no. will be your account no.

Penalty for not repaying the loan on time

If you are not able to repay the loan within the stipulated time, you shall be charged extra interest of 4% on the overdue amount.

LEAVE A REPLY

Please enter your comment!
Please enter your name here