Loans

Apply for a loan in minutes with Loop.

Get loans of up to Kes. 3 million and repay up to 3 years through Loop without paperwork. Simply apply in app! Make Loop your primary account for all your monthly transactions including your income. Your good activity on Loop will contribute towards a higher limit.

For those days that you get cash-strapped and require just a little amount, Loop allows you an overdraft facility that enables you overdraw your account to a maximum Kes.100, 000. Make Loop your primary account for all your monthly transactions including your income. Your good activity on Loop will contribute towards a higher limit.

The following Loop Credit facilities are accessible to all registered Loopers:

  1. Loop Personal Loan – Access a personal unsecured loan of up to Kes.3M for 36 months. The credit amount is based on your activity in Loop and your credit history.
  2. Loop Overdraft – Allows you to overdraw your Loop account up to Kes.100, 000.

 

What are the features of Loop Loans?

  1. Your loan limit is all data driven and is fully dependent on your Loop Activity as well as your credit history.
  2. Simple Application process – no paperwork, no red tape and is instant!
  3. Loop Personal loans will extend unsecured credit to Loopers from KES 50,000 to KES 3,000,000.

4.The repayment period will range from 6 months to 36 months

5.The applicable interest rate on Loop Loans will differ from Looper to Looper and will be determined by an individual’s credit history rating and the tenure of the loan.”

 

What are the interest (rates) and charges related to Loop Loans?         

Interest Rate:

All Loop Loans will have an applicable Interest Rate that will comprise of the following elements:

  • CBRR interest rate – Loop Loans will be pegged on the Central Bank Reference Rate
  • Your Risk premium rate- This is based on your credit history
  • Period risk premium- Based on the selected loan tenure

Fees:

Loop loans will also attract the following fees.

  • Facility fee- A 2% one off fee calculated as a percentage of principal loan amount requested will be charged and collected before disbursement.
  • Excise Duty A 10% one off fee calculated as a percentage of the facility fee amount requested will be charged and collected before disbursement.
  • Insurance Premium 0.7% one off fee calculated as a percentage of principal loan amount requested will be charged and collected before disbursement. “

What do I need to do to access a Loop Loan?   

  1. Complete your registration on Loop by registering online and visiting a Loop Store near you to obtain your Loop Card.
  2. Make Loop your primary account and channel your salary or proceeds from your hustle through Loop and transact for at least 3 months.
  3. If you have a good credit history and we are happy with your activity on Loop, we will communicate to you your Loop Loan limit. Click here for details on how to request a Loop loan.

 

What is the validity period of a Loop Loan Offer?

When you request for a loan, we will receive your request and immediately extend an offer to you for consideration and acceptance. This offer will only be valid for 7 days after which it will expire and you will have to initiate another request for a loan via the app.

Repayment: How will I know my repayment schedule for the Loan?    

A Loan Schedule will be available via the Loop App in the Loop Loan Menu Option.

This schedule will summarise all future payment dates and amounts due with a clear view of the Principal and Interest component.

You can also request for a Loan Statement via the app to view all past payments that relate to your Loan. This Statement will be delivered to your registered email address for your review.”

What will be the repayment terms?

Loan repayments will be automatically collected from your Loop Current Account every month from the date of disbursement.

Can I make Manual Loan repayments to reduce my loan amount due? 

You can always make a full or partial pre-payment on your Loan to reduce your Principal Amount. This is definitely a good idea as the amount you repay will FULLY be applied to the principal amount which means you will end up paying less interest on your loan at the end of the term.

NB: Despite any manual repayments done, we will always automatically make instalment repayments based on your schedule. If you make an early repayment before the last day of the month, you will still have a bill due on the last day of the same month.”

What changes happen to my Loan Schedule when I make manual Loan Pre-payments?

Any pre-payments shall reduce the number of remaining repayments i.e. shorten your term. Your monthly instalment amount shall remain the same.

What happens if I do not fulfil my obligations to repay my loan instalments on time?

In the unfortunate event that you do not make timely payments, we will transfer your details to the Credit Reference Bureau that may make you unable to access facilities from other lenders.”

Can I have an Overdraft and term Loan at the same time?       

Yes. As long as you are within your credit limit, you can have an overdraft and Loop Term Loan at the same time. We encourage responsible borrowing and trust your access to these facilities is to fund your dreams and make them a reality and build your hustle.”

What are the charges on the Overdraft?

Interest Rate: An Interest known as an Account Debit Interest of 0.04% will be calculated on the amount of the Overdraft utilised every day and needs to be repaid at the end of EVERY month.

Fees:  

  1. Facility fee- A 2% one off fee calculated as a percentage of the Overdraft limit will be charged and collected upon activation.
  2. Excise Duty A 10% one off fee calculated as a percentage of the facility fee amount requested will be charged and collected upon activation.

What do I need to do to access a Loop Overdraft?        

  1. Complete your registration on Loop by registering online and visiting a Loop Store near you to obtain your Loop Card.
  2. Make Loop your primary account and channel your salary or proceeds from your hustle through Loop and transact for at least 1 month.
  3. If you have a good credit history and we are happy with your activity on Loop, we will communicate to you your Loop Overdraft limit.

How do I make a repayment on my Overdraft?

Easily fund your Loop Main Account and this will update your available balance. It is that simple! If you have any amount of the Overdraft utilised by the end of the month i.e. account is overdrawn, a minimum deposit of 35% of this amount must be done.

What happens if I do not fulfil my obligations to repay my overdraft facility on time?

In the unfortunate event that you do not make timely payments, we will transfer your details to the Credit Reference Bureau that may make you unable to access facilities from other lenders.”

What do I need to do to get a Loop Loan Limit?

You need to at least do the following:

  • Have fully registered on Loop i.e. collected your Loop Card
  • Have been on Loop for at least 3 months
  • Make Loop your Primary Account with your income channelled consistently every month.
  • Consistently perform payments through Loop and use your Loop card to perform POS/ATM transactions.

How often will my credit limit be reviewed?   

With Loop, we strive to ensure Loopers enjoy all that Loop has to offer. No need to worry as we will be conducting monthly limit reviews.

Good news is, by increasing your activity on Loop, you can watch your credit limit grow over time.

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