You’ve been a loyal KCB M-Pesa customer for years, religiously repaying your instant loans to keep your account in good standing. Yet, no matter how many times you borrow and repay, your loan limit stubbornly refuses to budge from that initial amount.
Buckle up as we dive into the reasons why your KCB M-Pesa loan limit is not growing and more.
Also Read: Why is my Fuliza Loan Not Growing
Why is My KCB M-Pesa Loan Limit Not Growing?
The KCB M-Pesa loan facility, popularly known as the KCB M-Pesa Loan, has enhanced access to credit for millions of Kenyans. As of 2023, KCB M-Pesa loan had been given to 21 million registered users.
Why is your KCB M-Pesa loan limit not growing despite your excellent repayment history? Here are some quick reasons that we are going to cover later in this post:
- Inconsistent repayment history
- Poor transaction history
- New accounts that have not built adequate loyalty
- Not verifying personal information
With just a few taps on their mobile phones, customers can access short-term loans, from KSh 100 to KSh 1 million, providing a much needed help during emergencies.
How to Grow Your KCB M-Pesa Loan
Now, let’s address the million-shilling question: how can you increase your KCB M-Pesa loan limit? While KCB M-Pesa’s credit scoring model remains unclear, several factors are believed to influence loan limit growth:
Consistent Repayment History
Your repayment history plays a crucial role in determining your loan limit. KCB M-Pesa closely monitors how promptly and consistently you repay your loans. Borrowers who consistently repay on or before the due date are more likely to see their limits increase over time.
Transaction History
KCB M-Pesa’s scoring model considers your overall financial activity, including your income sources and M-Pesa transaction history. Regular deposits from employment or business income, as well as frequent M-Pesa transactions, can positively impact your credit profile and loan limit.
Account Age and Loyalty
The age of your KCB M-Pesa account and overall loyalty to the bank can also improve your standing with KCB M-Pesa. Loyal customers with a history of consistent KCB M-Pesa usage may be rewarded with higher loan limits.
Credit Reference Bureau (CRB)
While KCB relies mainly on its internal scoring model, credit bureau scores from agencies like Credit Reference Bureau Africa and Metropol Corporation also influence your loan limit. This is usually the case when obtaining most loans in Kenya, including Faraja Loan. Maintaining a healthy credit score can improve your overall credit profile.
Verify Your Information Occasionally
Incorrect or outdated personal information in KCB M-Pesa’s system could lead to loan limit stagnation. Ensure that your contact details, employment information, and other relevant data are up-to-date and accurately reflected in your account.
Contact Customer Service Representatives
If all else fails, don’t hesitate to reach out to KCB’s customer service representatives or visit a physical branch. While KCB M-Pesa is largely automated, customer service representatives can help answer specific questions about your loan not growing.
A Case Example of KCB-M-Pesa Limit Not Growing
Meet Juma, a 29-year-old entreprenuer from Nairobi’s Kibera slums. He runs a small mitumba stall and has been a KCB M-Pesa customer for the past four years. Initially, Juma’s loan limit was set at KSh 5,000, which he used to restock the items.
Over time, Juma’s mitumba business grew, and so did his need for bigger loans. He consistently repaid his KCB M-Pesa loans on time, often even before the due date. Yet, despite his excellent repayment history, his loan limit remained stubbornly fixed at KSh 5,000.
Juma tried asking KCB’s customer service questions but received unclear responses about their scoring model to determine credit worthiness.
Juma’s story is not unique. Many KCB M-Pesa users have shared similar experiences on social media and online forums, expressing frustration at their KCB M-Pesa loan limits not increasing.
Why am I Not Getting the KCB M-Pesa Loan?
Besides stagnant KCB-Mpesa loan limits, it’s essential to understand why some KCB M-Pesa users may not be eligible for loans in the first place. According to Safaricom Website FAQs, these are the requirements for accessing the KCB M-Pesa loan:
- You must be a registered KCB M-Pesa customer with an active account.
- Your M-Pesa account must have been active for at least six months.
- You must have a regular source of income or consistent M-Pesa transaction history.
- Your credit score, based on KCB’s credit scoring model, must meet the minimum requirements.
If you fail to meet any of these criteria, KCB may deny you access to the M-Pesa loan facility altogether. However, if you’re already an active borrower and your loan limit refuses to grow, other factors could be at play.
How Can I Access My KCB M-Pesa Loan?
Before we dive into strategies for increasing your loan limit, let’s quickly review how to access the KCB M-Pesa loan facility:
- On your M-Pesa menu, select “Loans and Savings.”
- Choose “KCB M-Pesa.”
- Choose “Loan @ 8.85% for 30 days.
- Request Loan.
- Enter the amount you wish to borrow (within your eligible limit).
- Review and accept the loan terms and conditions.
- Enter your M-Pesa PIN to complete the transaction.
Within seconds, the requested loan amount will be credited to your M-Pesa account, ready for withdrawal or transfer. Repayment is typically due within 30 days, though KCB M-Pesa offers the option to extend the repayment period for a fee.
Key Takeaway
The path to increasing your KCB M-Pesa loan limit isn’t always straightforward, but several factors can influence it. Consistent and timely repayments are crucial, but they’re just one piece of the puzzle.
KCB M-Pesa’s credit scoring model also considers your overall financial activity, including regular income and M-Pesa transactions. To boost your limit, consider strategic borrowing, keep your personal information up-to-date, and maintain a good credit bureau score.
If you’ve tried these methods without success, don’t hesitate to reach out to KCB’s customer service for personalized assistance.
