Free USSD MPesa Loans With Zero Network Charges 2023

By definition, USSD loans are small, short-term loans accessible via USSD codes through mobile phones.

On the other hand, free USSD MPesa loans refer to emergency loans accessed via the same platform but with absolutely zero network charges.

In Kenya, the widespread use of mobile phones and limited access to formal credit facilities among Kenyans has largely contributed to the increased uptake and dependence on USSD loans.

The process of obtaining a free USSD MPesa loan is fairly straightforward and simple involving dialing a lender’s specific USSD loan code, selecting your loan amount depending on your credit limit then submitting for processing and approval after which the funds are sent to your MPesa account.

Benefits Of Free USSD MPesa Loans

With the revolution of digital financial services such as USSD loans, various beneficial aspects accompany it. Some of these benefits include;

  1. Promotes financial inclusion: Free USSD MPesa loans bridge the financial gap by facilitating access to digital credit for individuals who are ineligible for traditional banking services.
  2. Ease of accessibility: Users with either basic phones or smartphones can easily access USSD loans as long as they have a functioning phone, active network subscription and meet the eligibility requirements to apply for the free USSD MPesa loans.
  3. Promotes convenience: USSD loans are ideal for financial emergencies due to their easy application process and quick disbursements upon approvals.
  4. No collateral: Due to their unsecured nature, USSD MPesa loans do not require provision of collateral as security to access them.
  5. Builds credit history: Responsible management of USSD loans through frequent borrowing and timely repayments establishes a positive credit history which may facilitate access to future higher loan limits.
  6. Boosts economic growth: USSD loans contribute to the overall economic growth through the provision of credit to entrepreneurs and small enterprises who in turn contribute greatly to Kenya’s economic development through job creation.
  7. Promotes savings and investments: Besides offering credit solutions, some USSD loans also promote savings and investment culture through the provision of savings platforms.
  8. Enhances digital literacy: Through the uptake of USSD loans, users become more accustomed to digital financial services thus resulting in a wider usage of digital financial goods and payment methods.
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Challenges And Risks Of Free USSD MPesa Loans

Like any other technological advancements, there exists both advantages and disadvantages of adoption of USSD loans.

Below are some of the downsides related to free USSD MPesa loans.

  1. Sustainability and long-term viability: Due to their zero charges nature, lenders need to have alternative revenue streams to cover the costs of administering the loans, processing applications, and managing risks without relying entirely on interest charges.
  2. Data privacy and security concerns: With the growth of USSD loans, collection and processing of borrower’s personal and financial data may lead to data breaches, identity theft or data misuse by third parties.
  3. Over-reliance: While free USSD MPesa loans carry a substantial number of benefits, excessive borrowing without financial discipline may eventually lead to financial instability resulting in debt traps.
  4. Competition: As more borrowers continue to adopt free USSD MPesa loans, the simplicity and accessibility provided by digital lenders may make it difficult for traditional banks to compete and retain customers.

Free USSD MPesa Loan Providers In Kenya

1. Commercial Banks

Majority of Kenya’s commercial banks have adopted the use of USSD codes as a supplementary feature to access their vast variety of product portfolios inclusive of USSD loans.

While some commercial banks may view the USSD option as an extra source of income through the introduction of network fees, there are those that offer the service for free.

Below are some of the free USSD MPesa loans offered by commercial banks.

Loan Name Provider USSD Code
Timiza Absa bank *848#
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2. Mobile Network Operators

Through their partnership with various financial institutions in the provision of digital credit services, network operators with a large subscriber base like Safaricom are able to reach a wider audience with their free USSD MPesa loan offerings.

Some of the free USSD MPesa loans provided by network providers are listed below.

USSD loan USSD code
M-Shwari *334#
Halal Pesa *334#
Fuliza *234# , *456#, *100#, *334#
Hustler fund *254#
KCB M-PESA *334#
Faraja *799#

3. Microfinance Banks

Commonly referred to as MFIs offer a range of small-scale financial services tailored to the needs of low-income individuals, especially those considered too “risky” by regular banks.

Currently, the Central Bank of Kenya (CBK) regulates over 14 licensed microfinance banks that provide a range of lending options such as free USSD MPesa loans.

4. Credit-Only Institutions

A credit-only institution is one that does not accept any sort of deposit or monetary collateral from any person.

Currently under the supervision of the Association of Microfinance Institutions – Kenya (AMFI-K), these institutions offer a portfolio of credit-related products such as free USSD MPesa loans.

Examples of such include;

Loan Name Provider USSD Code
JustCash Fincredit *424#
FinKenya (formerly TrustGro) *714#
CashXpress Premier Credit *241#
ExtendMoney *676#

5. Savings & Cooperative Organizations (SACCOs)

Saccos are voluntary membership organizations whose members routinely combine their savings for borrowing purposes.

Currently, there are more than 200 licensed saccos operating in various economic sectors in Kenya and offering various products and services including free USSD MPesa loans.

Examples of such include;

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Loan Name Provider USSD Code
Riziki Ushuru sacco *688#
M-Poa Ushuru sacco *688#
M-Kash Amref sacco *276*30#
PesaPlus Solution sacco *686#
SpotCash Tower sacco *645#

6. Digital Lending Platforms

These are private entities that offer digital credit services either in the form of apps or free USSD MPesa loans. Some examples of such include;

USSD loan USSD code
Stawika *872#
MyWagePay *384*104#
Tenakata *384*00#

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