UbaPesa Loan: How to Download & Apply for Loans

UbaPesa Loan App is a platform where lenders and borrowers interact. It can also be referred to as the money market, where lenders profit while borrowers get money for their needs.

UbaPesa Limited owns the App. UbaPesa Limited is a technology company that seeks to bridge the gap between lenders and borrowers and profit from the services.

Upon registration, one becomes both a lender and a borrower simultaneously. The App has both borrowing and lending options to choose what they want to do on the App at that given instant.

This article has all the necessary information about UbaPesa Loan App. Read through to understand the lending, borrowing, and registering processes.

How to register on UbaPesa Loan App

The only version of this available App is Android. Therefore you need to have an Android-powered device to access this App. To be a registered member, you must download the App and create an account. Below is the process of downloading the App and creating an account.

Downloading the App

  • Go to the google play store.
  • Type ‘UbaPesa app’ in the search box
  • Click the Install button.

Creating an account

  • Open the App on your device.
  • Click to sign up
  • Enter the details. (Includes your name and phone number)
  • Verify the details and submit
  • Check your loan limit.
  • Go to the Money market.

The registration process only takes a couple of minutes, and the account is ready to transact. Depending on your loan limit provided on the App, you can either borrow or lend.

Borrowing from UbaPesa Loan App

You are only allowed to borrow as much as your loan limit. These loans attract different interest rates depending on the period you will take to repay.

You will pay a 10% facilitation fee on the loan if you take ten days to repay. Twenty days will charge you a 14% fee.

Below is the step-by-step procedure for borrowing from the App.

  • Open the App on your device.
  • Log in to your account.
  • Go to Money Market
  • Request a loan

Once the loan is approved, the money will be sent directly to your Mpesa account through the number you used to register.

The loan should be repaid on time to avoid being denied credit. Regular borrowing and repaying on time increases your loan limit.

Here is the process of repaying the loan.

Repaying a Loan on UbaPesa

The loan can be refunded through the App or directly via Mpesa. To repay through the App, Log in to your account and select pay loan. Select Mpesa, enter the amount followed by your Mpesa pin, and press okay.

To repay directly from Mpesa, follow the procedure below.

  • Go to the Mpesa menu.
  • Select Lipa Na Mpesa
  • Choose PayBill
  • Enter 144966 as PayBill number
  • Enter your account number (The phone number you used to register)
  • Critical in the amount due
  • Enter Mpesa Pin
  • Press Okay
  • Go back to Ubapesa and select Repay loan to make it refresh your account.

Once you have completed the process, you will receive a notification from Mpesa and Ubapesa that your loan has been cleared.

Lending money on UbaPesa

You need to have funds in your UbaPesa account to give a loan. If you have insufficient funds in your account, you can deposit from Mpesa by following this procedure.

  • Go to the Mpesa menu.
  • Select Lipa Na Mpesa
  • Choose PayBill
  • Enter 144966 as PayBill number
  • Enter your account number (The phone number you used to register)
  • Key in the amount you want to transfer to Ubapesa
  • Enter Mpesa Pin
  • Press Okay

Note that the maximum amount you can lend on the App is Ksh. 140 000. Lenders earn 42.5% of the accrued interests when lending, while the remaining 57.5% goes to UbaPesa for platform charges, insurance, and withholding fees.

Here is the procedure to be followed when lending on the App.

  • Open the App on your device.
  • Log in to your account.
  • Go to Money Market
  • Choose ‘Give a loan.’

You can let the App pick a borrower for you or select a borrower of your choice from the App’s list.

As a lender, you can choose single lending to give all the money to one borrower and wait until they repay. You can also select multiple loans to provide small amounts to different borrowers until the funds are finished.

Now you have all the facts about operating the UbaPesa app. This is the only platform in Kenya where you can simultaneously borrow and give out a loan.

Simon Mwangi
Simon Mwangi
As a freelance writer with a background in banking and accounting, Simon has the financial know-how to produce quality content on various topics. His experience gives him a strong foundation in understanding complex financial concepts and communicating them in an easy-to-understand way. Follow him on Linkedin

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