For every financial dream you have, you need financial support to achieve it.
Whether you want to buy a new home, or car, finance a wedding, or pay school fees or debt, personal loans will offer a perfect solution.
A personal loan can be accessed via a lender like Co-op Bank in a lump sum with a fixed interest rate and repayment terms.
What is a personal loan?
A personal loan refers to money borrowed from a bank or other financial institution to be paid within a specific period on a monthly basis.
According to Bank rate, most personal loans are unsecured, meaning the borrower does not need collateral to qualify for the loan.
Lenders like Co-op Bank Kenya have set a personal loan amount of between KSh 50,000 to KSh 8 million, and this can be accessed with zero opening balance.
Qualifying for Co-op bank personal loan
All you need is a salary account to qualify for a Personal loan. Customers can as well get up to KSh 500,000 in mobile loans.
Co-op Bank customers should maintain an active salary account for a minimum of six months for non-check-off customers.
Customers under schemes/check-offs can open accounts and fill a change of pay point to a Co-op bank and immediately access to credit facilities.
All personal loan requests are processed within 48 hours subject to employer confirmation.
Personal loan interest rate and repayment period
The interest rate for personal loans is based on creditworthiness, income, and other factors, and is paid on top of the loan amount at fixed intervals.
The lender offers a maximum repayment term of up to 96 months.
Customers are comfortable choosing the repayment timelines that best suit their income needs. For lower monthly payments, you will need a longer period of repayment.
Customer requirements for personal loan
Co-op bank offers personal loans to employed individuals or individuals with a regular income.
A potential customer will need;
- Original National Identity Card and a copy
- Original PIN Certificate and a copy
- No specific minimum net salary
- Salary pay slips for the last 3 months
- Filled in loan application form
- Copy of KRA PIN
Once you have all these requisites documents, you present your loan application form to the nearest Co-op bank branch and wait for the approval.
Types of personal loans
1. Unsecured personal loans
Unsecured personal loans are offered with collateral. The borrower receives the money and begins payments with a fixed repayment period.
2. Secured personal loans
Secured personal requires collateral such as a home, car, or land. These assets acts as security for the loan and the lender can seize them in case of default in repayment.
Why you need a personal loan
Personal loans can be used to consolidate loans, for instance, Co-op Bank guarantees customers that it buys off/refinance other banks and Sacco loans for customers to have one repayment.
Unsecured personal loans can as well be used to secure affordable homes for bank customers, as opposed to home equity loans that require collateral.
They are also useful in settling emergencies and uncertainties due to their short approval period.
So, what are you waiting for? Open a salary account with Co-op Bank and get personal loans and mobile loans to start your investment journey.