combining microloans from various Mpesa loan applications in Kenya
You can find several apps that offer instant Mpesa loans in Kenya when you visit the Google Play store. Surprisingly, a cursory search may overlook the most prominent ones, like Branch and Tala, which have disbursed billions of dollars in loans. Each instant loan app will provide you with a small loan that you can pay back over the course of a few weeks, a month, or even longer. This is ideal for minor emergencies where you only require a small sum of money. However, they won’t be much help if you want a larger loan or a longer repayment period. Think about a situation where you require 30,000. If each app offers only 2000, you must download more than 15 apps to meet your needs. How will you repay the loan in the few weeks that are allotted to you, in addition?
The repayment period can be extended by up to a year by combining the loans from various apps using online resources. You will have the chance to address your major issue and make manageable monthly payments as a result, avoiding the trap of CRB listing, into which many people have fallen.
Have you heard of the website The Online Sacco? You can infer from the name that it is an online loan service. The platform, in contrast to instant loan apps, provides a number of services, such as networking and advertising opportunities for entrepreneurs. We will limit our attention to the loan service in this instance. The Sacco is free to join and offers members small loans of Ksh 1000 when they first sign up, just like the Apps. The maximum loan amount increases as a member makes on-time repayments and takes on more debt. Within 24 hours of receiving an application, loans are disbursed.
The platform is different from instant Mpesa loan Apps in that their loans are based on a virtual token known as a Toser. The Toser has a value that is determined in Kenyan shillings, similar to a company share. For instance, if a Toser costs Ksh100, paying Ksh1000 will get you 10 Tosers. Tosers can be bought and sold between members of the online Sacco.
The quantity of Tosers in your account is taken into account when you apply for a loan. Your loan amount will be determined by multiplying it by three. As a result, if you have Tosers worth Ksh3000, you are eligible for a Ksh9000 loan. A larger loan sum corresponds to more Tosers.
Consolidating Micro Loans from Different Instant Loan Apps
Before combining all of your loans into one, you must still download each of the different loan apps and obtain a small loan from each one. Before applying for a large loan with a flexible repayment period, spend the money you receive on Tosers at the Online Sacco. For instance, if you receive Ksh 2000 from 10 different apps, your final balance will be Ksh 20,000. This translates to a Ksh60,000 loan from the online Sacco for the purpose of purchasing tosers. You will have more than 30,000 after paying back the loans, interest, and fees from the apps.
The benefits of loan consolidation are numerous for you. The main one is that you have the money you require to address your issue. The instant loan apps will also help you increase your loan limits because they typically raise them in response to on-time loan repayments. Additionally, you will have invested in the process, which you can recover once the loan is paid off. Furthermore, the Tosers you purchased may be worth more when you pay off your loan, which would cover the additional expenses related to the consolidation process. For instance, the Tosers you purchased for Ksh20,000 may be worth Ksh30,000 six to twelve months from now.
Consolidation Pitfalls to Avoid
It’s a fairly simple process, but if you’re not careful, minor problems could derail your carefully laid plans. Prior to receiving loans from the other microlenders, you must first make sure you have a Sacco online account. Work on the invitation first since membership in the online Sacco is only by invitation.
The fact that loans from the online Sacco are sent via prepaid debit cards is another crucial point to remember. While you can directly purchase Tosers through Mpesa, you cannot obtain a loan from the online Sacco without the card. Numerous organizations, such as family bank, aresuing the cards for free. Therefore, before beginning the consolidation process, you should get one.
Last but not least, be sure to repay the instant loan apps as soon as the online Sacco sends you money. If you wait, you might use it and end up with two loans you can’t pay back. Keep in mind that the numbers in this article are merely examples.
