Branch is a financial institution which is currently in Kenya and Tanzania. It enables individuals to have access to loans in the easiest way possible.
Branch app currently has more than 100,000 downloads in playstore which shows how trusted, popular and the huge market share that the financial firm has amused.
I decided to write this article since most youths in Kenya cannot get loans from banks since they do not have permanent employment.
Requirements for applying a loan with branch
- Facebook account
- National ID or Passport
- Mpesa account or Airtel money
Branch will use the data in your phone e.g recent mpesa transactions to gauge your credit score.
Procedure to set up your account
- Install the Branch app from playstore
- Sign in using your Facebook account
- Add your phone n.o
- Wait for a text message from branch which will automatically verify your phone number
- Branch will then scan your phone data then calculate your credit score. After that it will show you your credit limit
How much interest rate does branch charge?
Interest rates vary depending on your repayment history and the cost of lending by branch.
The interest rate range is usually between 6-23% ( after the passing of the bill on interest rate capping i think it should be between 6-14.5%)
e.g On my first loan of 1000 ksh I was charged 13.6% thus i ended up paying 1136 ksh after 4 wks.
How to repay your branch loan
- Go to mpesa
- Lipa na mpesa
- A/C n.o ( your phone number)
- Choose the amount you want to pay
- Enter mpesa pin then confirm the transaction
Branch penalties on defaulting on loan repayment or late repayments
- Firstly branch will lower you credit score which means the next time you borrow money you will be given little money as compared to your previous loan.
- You will be listed by the CRB as a loan defaulter an thus you will not be able to secure loans from other financial institutions