How USSD banking is shaping loan acquisition in Kenya

Ussd banking offers offline banking solutions to access and make mobile financial transactions

Mobile lending has been on the rise with approximately 4 in every 10 Kenyans acquiring a loan. As a result leading to the increase and refinement of mobile loan services and a rise in USSD banking.

In this article we will dive into what USSD banking is and a variety of USSD codes Kenyans use to acquire loans.

What is USSD banking

USSD banking offers offline banking solutions for an individual to access and make mobile financial transactions. In addition to this in the case that there is no internet connection one can use a banking code to retrieve their details or even get loans.

How does USSD banking work?

Through USSD banking, users have been able to access their banking account services regardless of the area they are in. This is because all they have to do is to operate their banking service through their mobile phones. Here are some of the ways that will help us understand how USSD banking works;

  1. The USSD service allows users to perform transactions with the help of their mobile phones. Users don't necessarily have to report themselves to the ATM or banks to carry out transactions.
  2. Users can check their account balances in their mobile banking application with the help of the USSD code provided by their bank server. They also can pay directly for services such as bills through their phones straight from their bank accounts.
  3. The USSD mobile banking services are secure because you can only carry out transactions or operations using a secret PIN. You must enter this secret PIN to get permission to operate your account.
  4. It allows its users to operate through their banking services without necessarily having to access the internet. This gives an easy operation time to users who don't have smartphones.

Benefits of USSD loan banking in Kenya

USSD loan banking has saved a lot of Kenyans the headache of moving around with a bunch of money in their bags. The banking services have offered a lot of benefits to its users, and with us are some of them that have been observed through USSD mobile loan banking as follows;

  1. Easy access

Through the USSD loan services, users have been able to apply and get money at a faster rate into their devices. This has given users a chance and assurance of a place they would conveniently get money from, and immediately after applying, the cash is loaded into their accounts.

  1. Minimal documentations

The USSD loan banking has little to no documentation for users willing to apply for needed loans. This has made it easy for citizens who want to lend money as they don't have to go through many procedures for approval.

  1. Low cost

USSD mobile loan banking is offered at a lower cost than traditional banking loan services. This has simplified and eased those users who cannot afford credit, making it more convenient for them.

  1. Easy repayment

The USSD mobile services allow customers to repay their loans due without any difficulties quickly. This is because the steps taken to repay the loan are easy and do have no many tiring procedures to be done.

  1. Convenient

Gone are the day's users of certain banks who had to show up in their banks and request loans physically. With USSD loan banking available, users have been able to apply and get cash immediately on their mobile phones.

USSD loans

USSD loans are basically loans one can acquire from a loan service by the use of a USSD code. In order to get a USSD loan in Kenya an individual needs to identify a lender, meet their requirements so as to get the necessary USSD code.

30 USSD codes for Loans

1.Sotiwa -*243*90#

2.MyCredit - *322#

3.Standard Chartered Bank - *722#

4.SMEP Microfinance Bank- *741#

5.Commercial Bank of Africa - *654#

6.Consolidated Bank- *262#

7.Diamond Trust Bank- *385#

8.Equatorial Commercial Bank- *286#

9.Equity Bank of Kenya- *247#

10.Extend Money Services- *676#

11.K-Rep Bank- *527#

12.Kenya Women Finance Trust- *378#

13.Musomi Microfinance Institution- *279#

14.Maisha Bank- *281#

15.National Bank- *625#

16.NCBA Bank- *654#

17.Ndege Chai Sacco- *882#

18.NIC Bank Limited- *488#

19.Kopa doh- *610#

20.Sotiwa- *243*90#

21.Paddy Micro Investments- *269#

22.Telkom- *133#

23.Pi Capital Ltd- *879*99#

24.Premier Credit- *241#

25.Stanbic Bank- *208#

26.Chase Bank of Kenya- *275#

27.NIC Bank Limited- *488#

28.Ndege Chai Sacco- *882#

29.Safaricom/NCBA/KCB Bank- *234#

30.Gulf Africa Bank- *399#

Last updated
February 28, 2024
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