Top 10 Providers of Logbook Loans in Kenya

Discover the Top 10 Providers of Logbook Loans in Kenya, including Platinum Credit, Mwananchi Credit, and Ngao Credit.

Logbook loans have become a popular option for people in Kenya who need quick access to cash without going through the lengthy traditional loan application process. Several companies offer logbook loans in Kenya, each with varying terms and conditions.

List of Top 10 Providers of Logbook Loans in Kenya

In this article, we will discuss the most prominent logbook loan providers in Kenya and provide a comprehensive guide to their terms and conditions.

1. Mwananchi Credit

Mwananchi Credit is a financial institution that offers logbook loans to individuals and businesses in Kenya. The company allows borrowers to access loans up to 60% of their vehicle’s value, with a repayment period ranging from three months to two years. Mwananchi Credit charges an interest rate of 3% to 6% per month, translating to a total cost (interest and fees) of 3.79% to 12.33% per month. The company also charges an upfront car valuation fee of Ksh4,000.

2. Platinum Credit Limited

Platinum Credit Limited is one of the best logbook loan providers in Kenya. It allows borrowers to access loans up to 60% of their vehicle’s value, with a repayment period of three months to two years. The interest rate charged by Platinum Credit is 4% per month, which translates to a total cost per month (interest and fees) of 4.19% to 5.46%. The upfront car valuation fee charged by Platinum Credit is Ksh600.

3. Hakki Car Finance

Hakki Car Finance is a leading logbook loan provider that offers Kenyans access to loans of up to 50% of their vehicle’s value. Their repayment period ranges from three months to two years. The interest rate charged by Hakki Car Finance is 3.1% per month, translating to a total cost (interest and fees) of 3.18% to 4.77% per month. The upfront car valuation fee charged by Hakki Car Finance is Ksh3,000.

4. Mogo Kenya

Mogo Kenya is a logbook loan provider that allows borrowers to access loans up to 75% of their vehicle’s value, with a repayment period of six months to five years. Their interest rate is 2.5% per month, translating to a total cost (interest and fees) of 2.8% to 4.6% per month. Mogo Kenya charges no upfront car valuation fee.

5. Izwe Logbook Loan

Izwe Logbook Loan offers up to 75% of the borrower’s vehicle’s value. Their repayment period ranges from 6 to 18 months. They charge an interest rate of 3.5% per month, which translates to 3.7% to 5.17% per month (interest and fees). Their upfront car valuation fee is Ksh3,600.

6. Kifedha Credit

Kifedha Credit is a logbook loan provider that allows borrowers to access loans up to 50% of their vehicle’s value, with a repayment period ranging from three months to 24 months. The interest rate charged by Kifedha Credit is 5% per month, which translates to a total cost (interest and fees) per month of 5.03% to 5.20%. The upfront car valuation fee charged is Ksh3,000.

7. MyCredit Limited

MyCredit Limited is another Kenyan logbook loan provider that offers loans of up to 60% of the value of your vehicle. The loan duration ranges from 3 to 24 months, and the monthly interest rate is 5%. The total cost of the loan, including interest and fees, ranges from 5.23% to 6.83% per month. MyCredit Limited charges a car valuation fee of Ksh3,500 upfront.

8. Ngao Credit

Ngao Credit is a logbook loan provider in Kenya that offers loans of up to 60% of the value of your vehicle. The loan duration ranges from 3 months to 2 years, and the monthly interest rate is 3.5%. The total cost of the loan, including interest and fees, ranges from 3.6% to 7.5% per month. Ngao Credit charges a car valuation fee of Ksh3,000 upfront.

9. FinCredit Limited

FinCredit Limited is a lender in Kenya that provides financing to individuals with their cars as collateral. The company offers loans up to 70% of the car’s value, with a repayment period of up to 48 months. The monthly interest rate is 4%, and the loan’s total cost, including interest and fees, ranges from 4.2% to 7.2% per month. FinCredit Limited requires a car valuation fee of Ksh3,500 before approving the loan.

10. Bidii Credit Limited

Bidii Credit Limited is a financial institution that offers loans secured by car logbooks in Kenya. The lender provides loans up to 60% of the car’s value, with a repayment period of up to 18 months. The interest rate per month is 4%, and the total cost of the loan, including interest and fees, ranges from 4.2% to 7.2% per month. Bidii Credit Limited charges a car valuation fee of Ksh3,500 upfront.

11. Momentum Credit

Momentum Credit is a lender in Kenya that offers logbook loans to individuals who need financing. The company provides loans up to 60% of the car’s value, with a repayment period of up to 24 months. The interest rate charged per month is 3.5%, and the total cost of the loan, including interest and fees, ranges from 3.9% to 7.8% per month. Momentum Credit requires a car valuation fee of Ksh3,000 before approving the loan.

• Also, Check Out This Article: Best Unsecured Personal Loans in Kenya

Advantages of Logbook Loans in Kenya

Logbook loans can be a good option for those needing quick cash access. Some of the benefits of logbook loans in Kenya include the following.

1. The quick and easy application process

Unlike traditional loans, logbook loans have a straightforward application process. Borrowers can apply online or visit the lender’s office; the approval process is usually fast.

2. No credit check required

Logbook loans are secured against the borrower’s vehicle, meaning lenders are less concerned about the borrower’s credit history. This makes logbook loans a good option for those with bad credit.

3. Access to larger amounts of cash

With logbook loans, borrowers can access larger amounts of cash than other types of loans. This is because the loan amount is based on the value of the borrower’s vehicle.

4. Flexible repayment terms

Logbook loans typically offer flexible repayment terms tailored to the borrower’s needs. Borrowers can choose the loan duration that works best for them and can pay off the loan early without incurring any penalty fees.

Disadvantages of Logbook Loans

While logbook loans can be a good option for those who need access to quick cash, there are also some risks and disadvantages to consider. These include the following.

1. High-interest rates and fees

Logbook loans can be quite expensive due to high-interest rates and fees. Borrowers need to carefully consider the full cost of the loan before committing to any logbook loan.

2. Risk of repossession

Logbook loans are secured against the borrower’s vehicle, meaning the lender can repossess the vehicle if the borrower fails to repay on time. Borrowers need to carefully consider their ability to repay the loan before taking out a logbook loan.

3. Not a long-term solution

Logbook loans are designed to be a short-term solution to financial problems. Borrowers should not rely on logbook loans as a long-term source of funding, as the loan cost can quickly add up.

4. Limited options

While several logbook loan providers exist in Kenya, borrowers may need more options regarding loan amounts and repayment terms. Borrowers need to carefully compare the terms and conditions of different lenders before making a decision.

• Read Also: Top 20 Best Instant Mobile Loan Apps in Kenya

In Conclusion

Logbook loans in Kenya are becoming increasingly popular as more and more people look for ways to access quick cash without the long and sometimes complicated application process. Kenya has several logbook loan providers, each with its terms and conditions.

When considering a logbook loan, it’s important to compare the terms and conditions of different lenders carefully and ensure you understand the full cost of the loan.

Logbook loans can be a good option for those needing quick cash access. They can also be quite expensive and come with risks. Therefore, borrowers need to consider their ability to repay the loan carefully. They also should consider their long-term financial goals before committing to any logbook loan.