How To Apply For Zenka Loan

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Zenka Finance Limited is a digital credit provider that specializes in consumer lending specializing on mobile loans through the Zenka loan app.

Zenka app uses the data that you fill in during the application and Zenka algorithms to identify you, verify your identity, assess your creditworthiness, credit risk, create a credit score for you and ensure they comply with applicable laws, rules and regulations.

Which Personal Data Does Zenka App Collect?

Zenka data uses cookies to collect data regarding the customers who apply for loans through the app. The following is the kind of data that the app collects about you.

  1. Data concerning the technical details of the device through which the app has been downloaded. Information collected includes IMEI or serial number, data from the internet service provider, IP address, and details about login to the Zenka account. Data about sim cards, the mobile service provider data will also be collected.
  2. Data concerning private information like contact lists, call logs, and SMS logs.
  3. Data regarding your location using GPS technology.
  4. Data from third party eg CRBs, collection agencies, and mobile service providers among others

Though Zenka Loan App uses this data to safeguard the KYC and anti-money laundering regulations, the information can be breached and abused.

How Much Loan And At What Cost From Zenka Loan App?

The loans range between sh 500 to sh 30,000 for repayment terms that range from 1 day to 61 days. The loan interest varies from 12% to 29% of the loan principal with late repayments attracting a penalty of 1% of the loan principal.  This interests charges are not compounded and do not accrue from day to day.

The effective applicable interest rates for Zenka loans are between 146% and 352.8% per annum. The Sacco loans and loans by telecommunication firm Safaricom like Fuliza loan are way cheaper. The interest amount is determined before the loan is taken and the borrower will pay a fixed loan interest amount if the loan is paid within the stipulated timelines. In case of default, the loan plus the late payment interest will be paid.

Here Is How To Apply For Zenka Loan

  1. Go to google play store and download the Zenka loan app.
  2. Read and accept the terms and conditions
  3. Register if you are new or sign in if you have an existing account. You will be reguired to provide your name, address, mobile number, and ID Number.
  4. The system will then evaluate you and tell you the amount of loan that you qualify for. The new customer will always start from the lower end moving upwards.
  5. Apply for the loan and choose the repayment period.
  6. The loan will be sent to you via M-pesa within 5 minutes of the application.

Can You Apply For Zenka Loan Without SmartPhone?

It is not a requirement that you must have a smartphone in order to apply for a Zenka loan. But you will need internet access to register yourself with Zenka. You will use the Zenka Loan short code *841#.

Here are the steps;

  1. Dial *841# and enter your pin
  2. Choose the option applicable with 1-apply loan, 2-change pin, 3-invite friend, 4-referral summary and 5-help
  3. All you need to do is follow the instructions appearing on the screen complete the application process.
  4. Money will be sent to your M-pesa account within 5 minutes of the application.

How Is Zenka Loan Repaid?

After applying for the loan, it’s time to repay it. You need to repay the loan with the selected timeline or within the stipulated time. You will use the app to make the repayment.

  1. Open up the Zenka Loan App and select pay off Zenka loan.
  2. The loan will appear on the screen showing the amount due
  3. Chose the amount you want to repay and click repay now.
  4. You will receive a message from Safaricom with instructions to pay the Zenka loan app paybill and the amount to pay. All you have to do is enter your pin and the payment is done.
  5. You will receive an SMS from Zenka confirming receipt and repayment of the loan.

How to repay Zenka Mobile Loan without the App?

You do not need to have the loan app to repay the loan. You can repay the loan through the M-pesa via paybill number 979 988. The paybill charges will apply.  Here are the steps to follow:

  1. On your mobile device, go to your Safaricom Toolkit
  2. Click on the Mpesa menu option.
  3. Choose “Lipa na Mpesa“.
  4. Choose Pay Bill.
  5. Enter business Zenka Paybill number 979 988.
  6. Enter the phone number you used to borrow the Zenka loan as the account number.
  7. Enter the amount to repay.
  8. Enter your Mpesa PIN and click OK.
  9. You will receive a confirmation message from Safaricom regarding the success of the payment and Zenka confirming receipt of funds.

Are There Similar Mobile Loan Apps In Kenya?

The advent of mobile loans has caught Kenya by storm. There are several mobile loan providers who have come up. Some are regulated while others are unregulated. The interest rates applicable vary from mobile loan app to the other. These mobile loan apps include:

  • Tala loan app
  • Branch loan app
  • Timiza loan app

Final Thoughts

Though Zenka Loan is expensive, it will come in handy when you are in a fix. When you have a good credit rating, it will be easy to access the loan. As you take more and more loans, your credit score will continue improving and you will get approved for higher amounts.