Logbook loans in Kenya 2022. Mwananchi credit logbook loan

Introduction

Logbook loan is a type of credit that that allows one to use their motor vehicle as a collateral to secure a loan. The collateral can be either a car, a truck, a tractor, a motorcycle or a tuktuk. Logbook loan is one of the quickest way to get instant funding in case you are faced with an emergency situation.

In this article, I will be taking you through every aspect of Mwananchi credit logbook loan, how you can acquire it instantly, how you can repay the loan and everything you need to know about this type of loan. At the end of this article I will also answer some of the frequently asked questions regarding Mwananchi credit logbook loan.

Read also: How to borrow loans ranging between 150,000 and 1.5M on Timiza without collateral

Read also: How to borrow instant loans on Branch Loan App ranging from KSH. 250 to KSH. 70,000

Difference between logbook loan and vehicle loan

• Vehicle loan is also known as asset financing loan. It’s purpose is to finance the purchasing of a vehicle while logbook loan is taken for other purposes but with your vehicle as the collateral.

• To qualify for a logbook loan, you must have a vehicle of your own while you can qualify for a vehicle loan even without owning a vehicle.

• Logbook loan is secured (with one’s vehicle) but a vehicle loan can either be secured or unsecured.

After looking at logbook loan broadly, it is now time to narrow down to Mwananchi credit logbook loan which will be our main focus in this article;

Mwananchi Credit Logbook Loans In Kenya

Mwananchi credit offers logbook loans ranging between KSH. 100,000 and KSH. 25,000,000 based on the value of your car. But you need a Ferrari to qualify for a logbook loan worth KSH. 25,000,000? No. You can tie many logbooks to form one and this is only possible if you have a fleet of cars and borrow a loan worth up to 80% of the total value of the cars.

Mwananchi credit also charge an interest rate from as low as 1.6% based on the repayment plan you will opt for. The shorter the repayment period, the lower the interest rate and the longer the repayment period, the higher the interest rate.

Mwananchi offers the credit in a record six hours which is the shortest time a lender can take to fully process and disburse a logbook loan into your account.

What do you require to qualify for Mwananchi credit logbook loan?

Owning a private vehicle, public service vehicle or a commercial vehicle is of course the first requirement you need to meet before you even think of knocking on Mwananchi credit’s office requesting for a logbook loan. Apart from owning a vehicle, you also need the following;

• Original car or motorbike logbook

• KRA PIN of the applicant

• Original national ID card of the applicant

• Two passport-size photos

• Six months bank statement

• Comprehensive insurance certificate cover

How to get a logbook loan from Mwananchi credit

Online Application

To borrow logbook loan from mwananchi credit, visit their official website mwananchicredit.com and click logbook loans,. Proceed to the logbook loan calculator and enter the amount you wish to borrow and the repayment plan that fits you most. The calculator will reveal the total amount you will be required to pay (including the interest) depending on the payment plan you choose.

Proceed to enter your details in the next step. You will be required to enter your name, phone number, National ID number, vehicle details and your functional email address. You can also enter a promo code but it is not compulsory.

Submit your details and a customer care will call within 30 minutes (if you applied during working hours) of your application to pre-approve your application.

After the pre-approval, you will be issued with a loan contract form from mwananchi credit which you will be required to fill after which your loan will be processed and disbursed to your account within six hours of approval.

Offline application

To apply for your loan offline without engaging the internet, visit your nearest mwananchi credit office accompanied with your original ID, and your KRA pin certificate.

Mwananchi credit have offices in all the major towns in Kenya including; Nairobi, Mombasa, Thika, Eldoret, Kisumu, and Kitengela. You can also call them at 0709 147 000 or send the word logbook loan to 23877.

After reaching out to them, you will be issued with various forms which you will be required to fill and your loan will be processed and disbursed within six hours after your application is approved.

Mwananchi credit logbook loan interest rates

Mwananchi credit charge interest rates from 1.6% depending on the payment plan. The longer the payment plan, the larger the interest rate and the shorter the payment plan, the lower the interest rate.

Can one lose their vehicle if they fail to pay the loan?

Yes. One can lose their vehicle if they fail to pay the logbook loan they borrowed from mwananchi credit, but one can communicate with the lender to review the payment plan and extend the payment period if they are unable to repay the loan within the agreed period.

Can one continue using the vehicle they used as a collateral to borrow loan?

Yes. Mwananchi credit gives you the liberty to use your car while you are still settling your loan balance. But you won’t be able to get back your logbook until you settle your loan fully.

What percentage of your car value does mwananchi credit lend?

Mwananchi credit lends up to 80% of your car’s value. This is different from other lenders who lend only up 30% of your car’s value.

Can one use more than one car to borrow loan from mwananchi credit?

Yes. One can use more than one vehicle if they have to borrow loan from mwananchi credit. You can tie as many logbooks as you want and use them to borrow a single loan of higher value. (You can only do this if you own all the cars you present as collateral).

What’s Mwananchi credit’s loan limit?

Mwananchi credit gives out logbook loans ranging from KSH. 100,000 to KSH. 25,000,000 depending on the value of the car one presents as a collateral.

Can I borrow logbook loan when listed in CRB?

Yes. You can borrow logbook loan from mwananchi credit when you are negatively listed in CRB. Mwananchi credit will not use your CRB rating to determine your loan eligibility.

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