Bank Information and Reviews
Equity Bank traces its origin back to 1984 as a small savings and credit company. Commercialised into a fully-fledged bank in 2004, Equity bank has set its mission to empower and elevate communities from grassroots levels and improve their financial services to change livelihoods. They operate in various countries like Kenya, Uganda, Rwanda. Tanzania, South Sudan and the DRC.
What we Know about Equity Bank
Equity Bank Kenya is one of the top banks used by a greater majority of Kenyans. Despite being in the limelight time after time, with customer complaints on the security of their monies with them, Equity still ranks at top10 of the preferred banks to use in Kenya. Their portfolio is vast and ventures into both personal, commercial and mobile loans.
What Loans does Equity Bank offer & what are they best known for?
Equity Bank offers a variety of loans. Be it commercial, personal or mobile. There is an option for every ‘mwananchi.’ Under personal loans, you can get:
- Equiloan– Tailored for the salaried person looking to develop their projects.
- Salary advance – Favors account holders whose salary passes through Equity and need a cash advance.
- Asset Finance – Facilitates the purchase of businesses or personal assets.
Eazy loan.- Can be accessed through your phone and requires no guarantors.
The exact cost of a loan with Equity Bank & a representative example?
Usually, before taking a loan with any banking service, it’s best to have a ballpark figure of what it might cost you.
Here is a representative example of a loan under Equity bank. The calculation is indicative and not to be used as the fixed cost. So let’s say you borrow Ksh..1,000,000 how does that calculation look like?
For the maximum repayment period of 72months,
Monthly charges = Ksh.20,074.
LACE of (6%) = Ksh..60,000.
Insurance of (0.625%)= Ksh.6,250.00
Total Interest expected to be paid on that loan = Ksh.445,335.57
The total sum paid at the end of the 72 month period = Ksh.1,445,335.57
*Calculation is an indicative estimate. Contact Equity bank and get a personal direct quote*
Can you download the Equity Banking App?
Equity was one of the banks to incorporate mobile banking and jump into the fintech space of Apps. Creating their own equitel line and then onboarding an app-based platform to go with it. (Changing sim cards all the time on one phone seemed cumbersome we suppose.)
Unlike some banking apps that only allow you to perform digital day to day banking, with Eazzy banking, you can literally borrow up to 3 million from the app itself! and, repay using the same platform similar to how mobile loan apps work. Well, you can also buy airtime, transfer funds, access your equitel and manage your bank account on the app. Extensive features one might say, but then again, maybe that’s why the app has a lot of bugging problems?
To access eazzy banking through USSD, just dial *247#. Applies to equity account holders only.
To transfer money from your Mpesa to an equity account, the Equity pay bill is 247247.
How can you get a Personal Loan from Equity Bank?
Getting a loan with any bank is easy peezy. It’s the requirement process that most people find to be daunting because of documentation.
- Identification documents and employment letter.
- You need an active payslip,
- MOU with your current employer.
- An active Equity account that has been operational for a 6-month minimum. Preferably a salary account.
- KRA certificate.
Other documentation might be required to determine your cost of credit and risk assessment. Carry everything you think will work for you just in case.
How does Equity Bank Determine your Eligibility and Cost of Credit?
Cost of Credit refers to the additional amount over a borrowed amount that a borrower has to pay. It includes interest fees, arrangement fees and other charges that apply. Some costs are mandatory and required by the lender to ascertain you as a legal part of a credit agreement.
Equity bank will determine your eligibility by checking your bank account status. You need to be an active client for over 6 months. The activity on your financials will determine the amount you can get on a loan.
Other than that, your intended purpose of the loan and paying power will also be considered.
Overall the basic criteria for determining your eligibility will depend on how well you fall under the 5Cs’ of credit.
Amounts, Terms and Interest Rates from Equity Bank
First, Equity Bank loan amounts start at Ksh.50,000 whilst the maximum amount is calculated based on your paying power.
Second, repayment terms are set at 12 months to 72 months as the maximum
Third, interest rates start from 13% – 17%. This is exclusive of in-house banking charges and vary on the amount and period of the loan.
Disbursements and Repayments at Equity Bank
Once approved, Equity bank will deposit your approved monies to your account in less than 14 working days.
Repayment is expected to be through check off. Hence the need for you to be an account holder for a minimum period of 6 months.
If borrowing through the Eazzy banking app, the loan usually reflects in your equitel account within 24 hours upon request. From there you can transfer them to your Mpesa account.
N.b: If you are new to the loaning sphere, always apply for a higher amount than expected as the processing charges, excise duty and other internal mandatory charges will cut into the final amount and, you will end up getting less money than expected.
What Unique Features does Equity Bank have to offer?
Equity bank does not require a lot of requirements to be eligible for a loan and offers longer flexible repayment periods of up to 72 months.
How to Contact Equity Bank
Prefer to email instead? – [email protected].
Besides email or socials, how about a more personal traditional approach? Call +254 763 063 000.(Charges may apply.)