When you need quick funds in Kenya, you have two main mobile options: loans offered directly by licensed commercial banks (like M-Shwari, KCB M-Pesa, or Equity EazzyLoan) or mobile loans from standalone digital credit apps (like Tala or Zenka).

While both deliver cash straight to your phone, they differ significantly in cost, speed, safety, and flexible terms. Here is how they stack up.

Side-by-Side Comparison

Key Differences to Consider

1. Cost & Transparency

Bank-backed loans generally cost less because they are tied to traditional banking infrastructure and regulated interest frameworks. Digital apps charge higher service fees to offset the risk of un-collateralized borrowing for first-time users without active bank statements.

2. Privacy & Consumer Protection

Licensed banks operate under strict data privacy regulations, meaning they will not access your phone contacts or harass friends if a payment is late. Always ensure any digital loan app you download is formally licensed by the Central Bank of Kenya.

3. Borrowing Limits

Standalone apps are ideal for small emergencies (e.g., Ksh 2,000 for groceries), but their maximum limits stay low. If you need larger funds for business inventory, farm inputs, or major repairs, bank mobile loans offer significantly higher caps.

The Verdict: Which One Is Best for You?

• Choose Bank Mobile Loans if: You have an active bank or M-Pesa account, want lower borrowing fees, or need a larger loan amount with longer repayment timelines.

• Choose Standalone Loan Apps if: You do not have a formal bank account, need a small sum right away, and can comfortably clear the balance within two weeks to a month.

If you want a loan backed by a major bank with lower interest rates and flexible terms, MCo-opCash by Co-operative Bank of Kenya is a top choice. You don’t need to visit a physical branch to borrow—everything is done directly from your phone.

Loan Options & Limits:

• MCo-opCash Salary Loan: If you receive your salary through a Co-op Bank account, you can borrow from Ksh 1,000 up to Ksh 500,000. You can choose a repayment period of 1 to 3 months.

• Business Plus Loan: For small business owners and MSMEs, Co-op Bank offers mobile loans from Ksh 100 up to Ksh 1,000,000. You get up to 6 months to repay, making it ideal for restocking inventory or scaling operations.

• Kamilisha Overdraft: If you are paying for bills or sending cash on the Co-op Bank App and run short on funds, Kamilisha automatically tops up your balance up to Ksh 100,000.

Fees & Costs:

• Salary Loans: Fronted with a simple appraisal fee (8% for 1 month, 10% for 2 months, or 12% for 3 months) plus statutory excise duty and credit insurance.

• Business Loans: Monthly interest rates start at around 1.083% per month, making it one of the most affordable mobile options available.

How to Apply:

1. Via Code: Dial *667# on your Safaricom or Airtel line.

2. Via App: Download the Co-op Bank App from the Google Play Store or Apple App Store.

3. Log in, navigate to LOANS, check your limit, and request your cash. Money can be sent directly to your bank account or instantly transferred to your M-Pesa wallet.

Tips to Grow Your Limit:

• Deposit Regularly: Consistently run your business revenues, daily sales, or monthly salary through your Co-op Bank account.

• Use Co-opTill: If you run a business, setting up a Co-opTill merchant account to collect M-Pesa payments automatically boosts your Business Plus borrowing limits.

Have you ever tried to send money, pay a bill, or buy goods via M-Pesa only to find out you are short on cash? Fuliza is an instant M-Pesa overdraft service that lets you complete your transactions smoothly without delay.

Instead of applying for cash into your wallet, Fuliza automatically kicks in during a payment to cover the exact shortfall.

Quick Features & Limits:

• Loan Amount: You can get an overdraft limit from Ksh 100 up to Ksh 70,000 based on how actively you use M-Pesa.

• Repayment: There is no strict calendar due date. However, repayment is automatic. Any money deposited or received into your M-Pesa account will instantly go toward clearing your balance.

• Fees: A 1% initial access fee applies when you use the service. For daily maintenance, overdrafts under Ksh 1,000 offer a 3-day fee-free grace period. After 3 days (or for amounts above Ksh 1,000), a small daily fee applies until you clear the debt.

How to Activate Fuliza:

1. Dial *334# or *234# on your Safaricom phone line.

2. Select Loans and Savings.

3. Select Fuliza M-PESA and click Opt-In.

4. Once activated, whenever your M-Pesa balance falls short while sending money, paying via Paybill, or buying goods at a Till Number, M-Pesa will prompt you to complete the transaction using Fuliza.

Pros and Cons:

• The Good: It saves you from embarrassment or delays at checkout counters when cash is low. It is instant and requires zero paperwork or manual loan requests.

• The Catch: Because any money sent to your M-Pesa immediately pays off the debt, you cannot hold funds in your wallet until the Fuliza balance is cleared.

Tips to Increase Your Limit:

• Transact Frequently: Use M-Pesa regularly for buying airtime, paying merchant bills, and sending funds.

• Clear Balances Early: Pay back your overdraft quickly to demonstrate good credit health to Safaricom and its partner banks.

Would you like me to move on to drafting the seco

Need cash for an emergency, personal goals, or your business? Equity Bank offers quick and easy loans for everyone. Here are the best options you can get right now:

1. Instant Mobile Loans (No Paperwork)
You don’t need to visit a branch or sign papers. You can borrow directly from your phone:

Eazzy Loan: Dial *247# or use the Equity Mobile App. You can get from Ksh 1,000 up to Ksh 3 million instantly based on how you use your account. You have up to 2 years to pay it back.

Boostika: If you are sending money or paying a bill and your account balance falls short, Boostika lets you top up between Ksh 100 and Ksh 100,000 instantly to finish the transaction.

2. Business & SME Loans
If you want to grow your business or restock your shop, Equity has got you covered:

Unsecured Business Loans: You can now get up to Ksh 10 million for your business without needing to provide land or property titles as security.

Chama Loans (Pamoja Biashara): If you are in a registered group or Chama, your group can borrow up to Ksh 10 million together to boost your business projects.

3. Salary Loans (Equiloan)
If you are employed and your company works with Equity, you can borrow up to Ksh 5 million. The monthly repayments are automatically and safely deducted right from your salary for up to 6 years.

How to get approved faster:
Use your account often: Keep active by depositing your business sales, salary, or cash into your Equity account every month. This automatically increases your mobile loan limit.

Pay on time: Always clear your short-term loans early to build a great credit score for bigger loans later.

How to apply:
Just dial *247# on your phone, log into the Equity Mobile App, or walk into any Equity Bank branch near you today.