How to Apply for Small Loans in 3 Simple Steps

apply for small loans

A small loan could be all you need to ease financial strain, buy a vehicle, get married or just make some home improvements. But you need to be responsible with your loan. You need to find the best rate, the right term length and a reputable Kenyan lender.

Follow these 3 steps to apply for small loans with success.


Step 1 – Planning

There are many different types of small loans available for you to apply for: you need to find those that are suitable for your needs.

Payday loans offer you money against your salary – you accept the small loan and pay it back on your next pay day. Apply for small loans like this if you need a small amount of money in advance of your pay day, and you’re certain you’ll be able to pay back the loan from your salary.

You can also apply for small loans against your savings – different lenders will offer you different loan amounts. You could use this money for things like celebrations, home renovations or even emergencies.

Many lenders will also offer different kinds of small loans to apply for. The factors you need to pay particular attention to are: interest rates, added fees and restrictions when it comes to paying back the loan or the actual term of the loan.

Work out how much you need and how long you need to loan for. For example, Mombo App lends from ksh.2,000 to ksh.3,000,000 for terms of 1 week to 48 months.


Step 2 – Check Your Credit Score

Lenders will want to see your credit score as part of the application process, so it’s a good idea to take a look at your credit score in advance. If your credit score is poor, you might want to wait before you apply for small loans. It is wise to get your credit score to a good level before applying, to increase your chances of being accepted.

In Kenya, you can obtain your credit score from bank transactions or M-Pesa transactions.

  • Bank Transactions: you can obtain your credit score from the 3 credit reference bureaus (CRBs) in Kenya. These credit scores will have details about your transactions through banks and microfinance institutions. A score can be anywhere from 100 to 900: a good score is considered to be 700 or above. This credit score is better if you’re looking for large loans of ksh.200,000 or more.
  • M-Pesa Transactions: these are great for when you apply for small loans. Mobile lenders, like Mombo App, prefer these credit scores for small amounts between ksh.2,000 and ksh.200,000. The M-Pesa credit score has more details about your overall financial status as it covers mobile money transactions, while the bank credit scores do not.


Step 3 – Apply for Small Loans

Once you’ve got your score in good shape and you’ve planned out carefully how much money you need when you apply, it’s time to start searching for lenders.

The most popular or newest lender might not always be the best. Whether they’re a bank or a mobile app, there are a few things you should look for:

  • Bad reviews or good reviews?
  • Small print details – is the lender transparent about lending fees and conditions?
  • Does their website look reliable? Do they have a permanent address that checks out?
  • Can you call them and speak with an adviser to ask questions?


When you apply for a loan you’ll undoubtedly have to provide personal details as well as your credit score and other requirements. These will vary from lender to lender – some may require that you provide ID, others may just need a phone call or physical meeting to verify your identity.

When you come to apply for small loans just remember these 3 steps and be sensible! If you have any questions or concerns, why not get in touch with us at Mombo? We’d love to help you work out what loans are suitable for you and how much you could borrow. Find out more about Mombo App and apply for small loans here.