How To Avoid Defaulting On Your Zenka Loan: Tips & Strategies


Zenka is among the best loan apps in Kenya that offers loan amounts of up to Ksh 50,000 at varying interest rates based on market factors.

Zenka interest rates are evaluated on a regular basis and are determined by loan term, with short-term loans attracting higher interest rates than long-term loans.

How To Get Started With Zenka Loans In 6 Simple Steps

1. Download the Zenka app from either the Playstore/Appstore

2. Install the Zenka app to your smartphone

3. Accept Zenka privacy policy

4. Grant Zenka permission access to your phone data such as calls, SMS, contacts and location

5. Complete the registration process by using the promo code ‘EK6P’

6. Once registered, proceed and apply for a Zenka loan

How To Avoid Defaulting On Your Zenka Loan

Zenka loans offer flexible repayment periods of up-to 30 days at varying interest rates depending on your chosen loan amount.

As such, you have the choice of selecting your preferred loan amount and duration in line with your repayment capabilities to avoid Zenka loan defaults.

Zenka has outlined its default clause in its terms and conditions whereby it states that an event of default occurs when you;

a) Fail to repay your Zenka loan on due date
b) Are declared bankrupt
c) Deceased /permanently incapacitated
d) Participate /charged/convicted of illegal activities
e) Breach any of Zenka terms and conditions
f) Based on Zenka assessment, you are unable to repay your loans

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Consequently, Zenka defaults may lead to;

a) Reduction of Zenka credit score
b) Reduction of Zenka loan limit
c) Denial of future Zenka loans
d) Additional late penalty charges
e) Submission of loan details to credit reference bureaus
f) Closure of your Zenka account

Therefore, utilize the tips and strategies listed below to prevent the negative impacts of Zenka loan defaults.

1. Understand Zenka loan terms and conditions agreement

A loan agreement refers to a summarized formal contract detailing loan conditions between a lender and borrower.

A typical loan agreement contains basic elements such as borrower, lender, principal amount, interest, maturity date and penalties.

In this case, Zenka terms and conditions are available on the Zenka website as well as via the Zenka app whereby your loan obligations as a borrower are highlighted under the clauses 8, 11 and 12 which focus on interest, borrower responsibility and default.

Clause 8: Interest,charges and fees

This section highlights all the applicable charges related to your loan such as interest, processing fee, late repayment fees, costs/charges/expenses incurred by Zenka during loan recovery.

Clause 11: Borrower responsibilities

This section highlights personal liability to matters of identity fraud/security while using Zenka services.

Clause 12: Default

This section highlights the various consequences of defaulting on your Zenka loan.

2. Create A Budget

This involves cutting back on some expenses and channeling the extra funds towards Zenka loan repayment.

For example, you can decide to skip paying for DSTV for a month and instead use that money to pay off your Zenka loan.

By doing this, you are able to account for extra payments in advance thus preventing expenditure on anything else other than your Zenka loan repayment.

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3. Prioritize Zenka Loan Repayment

According to debt management, there are various techniques with which to prioritize debt and they include;

i) Debt prioritization via interest rate: this entails paying off high interest debt first. Also referred to as debt avalanche method
ii) Debt prioritization via balance: this entails paying off low balance debt first.Also referred to as debt snowball method.
iii) Debt prioritization via minimal repayments; this entails pay off debt in small quantities whenever possible.

4. Contact Zenka For Loan Restructuring

Loan restructuring refers to loan amendments suited to a borrower’s repayment capabilities.

Loan restructuring may involve prolonging repayment period, changing borrower repayment amount, changing installment duration, changing initial interest rate, writing off loan penalties etc

Depending on your scenario, Zenka may agree to loan restructuring if you reach out to them through any of their contact details below

Tel: (+254) 207 650 878
Facebook: @ZenkaKenya
Twitter: @ZenkaFinance

5. Debt consolidation

This refers to a debt management strategy of taking out one huge loan with the basis of paying off multiple smaller loans.

One of the major causes of debt trap cycles in Kenya involves the over-reliance of several loan apps at once whereby you borrow from one lender to pay off the other.

In the event that you have several debts from various lenders totaling to a fictitious amount of lets say Ksh5,000, you can opt to take out a Ksh10,000 from a different lender and offset the other smaller loans so that you remain with one manageable debt.

In the end, consolidating your debt will lessen the amount of time you have to worry about payments and interest rates.

6. Avoid too much debt

Mobile loans should only be channeled towards emergencies and not reckless expenditure such as gambling, expensive purchases etc

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If you necessarily have to take out a Zenka loan, choose a loan amount that is easily repayable.

Financial distress brought on by having too much debt could lower your Zenka credit score.

In summary, only borrow what you can afford to repay.

7. Extend your Zenka loan

One of the cool features about Zenka is the ability to extend your Zenka loan due date. This feature is beneficial in instances whereby you are unable to meet your Zenka repayment obligations as per the initial due dates.

By extending your Zenka due date, you prevent loan default and its associated penalties thereby remaining in good standing with Zenka.

To extend your Zenka loan requires two (2) options which include;

i. Extend Zenka loan due date via ussd

Dial Zenka loan ussd code *841#
Enter your Zenka PIN
Choose option 1: Extend
Select your preferred extension period ranging from 7/14/30 days
Select option 1; Accept
Enter MPesa PIN to complete the transaction

ii. Extend Zenka loan due date via Zenka App

Launch the Zenka app
On your active loans page, click on ‘Need more time to repay’
Select your preferred repayment duration i.e 7/14/30 days
Enter your MPesa Pin to finalize the transaction


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