This post will discuss the Branch loan limit and everything you need to know about increasing it.
As you all know, Branch International is a FINTECH firm that provides instant mobile loans to customers in Kenya, Nigeria, Tanzania, and India through a mobile app.
Branch has offices in all four countries where they have been operating for over six years. They have seen a lot of success in these countries, and they will only continue growing.
Now, back to what brought you here.
What is the Branch app loan limit?
Let’s talk about it.
How much is the Branch Loan Limit?
Like traditional banks and SACCOs, the Branch loan app has loan limits. This limit is the minimum and maximum amount of money a customer can borrow.
The branch loan limit currently ranges from Ksh. 250 to Ksh. 100,000. However, the maximum or minimum amount of money you can borrow from the loan app depends on your borrowing habits, credit score, and other factors.
Continue reading to find out how you can increase your branch loan limit.
How do I know my loan limit Branch?
Your loan limit on the branch loan app is the amount of money you can borrow from the app. This limit is based on your credit score, loan repayment history, and other borrowing habits.
You can find your loan limit branch by accessing your account on the Branch app. To do so, open the loan app and tap “Loan Limit.” This will bring up a screen with your current loan limit and other important information about your account.
How do you qualify for a branch loan?
The branch loan app uses complex computer algorithms, among other factors, to determine your loan qualification and limit. Some of the factors that the loan app uses to determine your loan qualification include the following:
1. Your CRB Status
Branch uses your credit score to determine how risky lending you money is. A good credit score shows that you’re a low-risk borrower and are more likely to repay your loan on time. This will increase your chances of getting a higher loan limit from the app.
2. Your Monthly income
The loan app will also consider your monthly income when determining your loan limit. Your income is a good indicator of your ability to repay the loan on time. You’re more likely to get a higher loan limit from the app if you have a higher income.
3. Your repayment history
Your repayment history will also be considered when your loan is being processed. The lender wants to know if you have an account of on-time payments or if you’ve had any late fees or defaults.
A good repayment history will show that you will likely repay your loan on time. This will be a positive factor for the lender when considering your application.
However, having a poor repayment history will count against you and mean you’re not approved for the loan. So, ensuring that your payments are always on time is essential.
4. Your current location
Another factor that the Branch app considers is your current location. The app wants to ensure it’s lending money to people physically close to one of its branches.
This is because they want to ensure that they can provide you with customer service and support if you have any issues with your loan.
5. Mpesa transactions messages.
The app will also collect your Mpesa transaction data to determine your loan limit. They want to see if you have a history of sending or receiving money through Mpesa.
This data is used to help the app determine whether you’re a low-risk borrower. If you have a good history of Mpesa transactions, this will be a positive factor when choosing your loan limit.
6. The type of phone that you are currently using.
I know this may sound funny, but it’s true. The app will also consider the type of phone you are currently using.
They want to ensure you’re using a smartphone compatible with their app. If you’re using an older model phone, this may be a negative factor when determining your loan limit.
7. Lastly, but most importantly, the information you feed the app during sign-up
Yes, the information you feed the app during sign-up is also used to determine your loan limit.
So, ensuring that you provide accurate and up-to-date information about yourself when you sign up for the app is essential. This will ensure that you get a precise loan limit from the app.
To qualify for a loan from the Branch app, you must own a good smartphone with a valid phone number, Mpesa account, National ID, and a social Facebook account. This is hilarious! Is it?
How to increase Branch loan limit
To increase your branch loan limit, you must improve your CRB credit score, pay your current loans on time, and use the loan app more often. This will show the Branch that you are responsible.
The good news is that you can increase your branch loan limit by following a few simple steps.
- Make sure that you have an excellent CRB credit score.
- Paying your current loans on time will improve your Branch credit score and, in turn, increase your loan limit.
- Use the Branch app more often to show that you are responsible and can be trusted with a higher loan limit.
- Use Mpesa regularly and keep the transaction messages.
- Download and keep the branch loan app on your phone. This is to help the app to get to know you better financially.
- Apply and repay loans on the app regularly to gain their trust.
- Invest in a good smartphone.
- You can also ask the customer service representative to increase your loan limit. They may be able to help you out if you have been a good customer.
Does Branch check CRB?
The Branch app uses your CRB credit score to determine your loan limit and qualification. If you have an excellent CRB credit score, you are more likely to qualify for a loan and have a higher loan limit. However, the CBK ordered to prevent Branch from checking the CRB score, but this might change anytime.
You can check your CRB credit score by visiting the website of Kenya’s three major CRB bureaus. These include:
- Creditinfo CRB Kenya.
- Transunion Kenya CRB
- Metropol CRB
If you have a low CRB credit score, you may want to improve your credit score before applying for a loan from the Branch app.
Don’t hesitate to contact the Branch customer service team if you have more questions about the Branch Loan Limit 2022. They will be more than happy to help you out.