Equity Bank Kenya Limited is the provider of Equiloan. This loan product is exclusive to employed people. Eligible customers can apply for Equiloan to purchase an asset, develop a property, or solve an emergency. Would you like to know how to get Equiloan from Equity Bank? This article explains everything you should know.
How to Get Equiloan from Equity Bank
The bank must first verify your documents. For that to happen, you should visit an Equity Bank branch near you. Carry the payslips you have received for the past three months and your employment letter.
The bank official will check these to verify your employment status. Additionally, bring your national ID or passport and KRA pin certificate. If you have everything necessary for the paperwork, the bank official will help you through these steps:
- Fill out a loan application form. Avoid lying, as this might lower your chances of qualifying for a loan.
- Submit the form and wait for Equity Bank to approve or reject your loan application.
- If the appraisal is successful, the bank will send you an offer letter. It will reveal the size of the loan you are eligible for.
- After accepting the loan offer shown in the letter, return the correspondence to Equity Bank.
- Wait for the bank to deposit your funds in your account.
Features of Equity Bank’s Equiloan
Here are the unique features of Equiloan:
- Loans range from Ksh. 100,000 to Ksh.5,000,000
- Accessible to employees whose bosses have signed an MOU(Memorandum of understanding) with Equity Bank Kenya Limited
- The bank will automatically deduct a monthly loan payment from your salary
- A flexible repayment term of six months to six years
- Equity Bank can provide the loan amount you can comfortably repay.
Why You Should Apply for Equiloan
Equiloan has many benefits, including:
- Equity Bank Kenya Limited is a reputable commercial institution
- You require only your salary slip to secure this loan. No need to have a title, log book, or another asset
- Most people find the flexible loan repayment period very convenient
- The bank deducts its fees before you even touch your salary. Hence, your odds of defaulting on the loan are slim.
What is the Cost of Getting Equiloan?
Equity Bank has affordable interest rates, excise duties, and processing fees. The total annual costs apply only in the first year. They range from 18% to 20%. If your loan has a long repayment period, the bank will reduce your annual costs from the second year to 11% to 13.63%.
Below are the fees you should expect to pay on your Equiloan:
- Interest rates range from 11% to 13%
- A loan Processing fee of 5%
- An insurance fee of 0.63%
- Late repayment fee of 5%
- Excise duty of up to 20%.
Note: During your loan term, the bank will not charge you any withdrawal fees.
How to Repay Your Equiloan
Learning how to get Equiloan from Equity Bank is not enough. You should also get familiar with the loan repayment procedure. Equity Bank Limited expects you to pay off your debt every month.
As the bank has signed an MOU with your employer, you do not have to deposit your payment at the bank counter. Once your employer deposits your salary in your account, the bank will automatically deduct its share. If you wish to repay your loan faster, the bank has no problem.
Who can qualify for an Equiloan?
The first eligibility test is your employment status. Do you have a salaried job? If yes, discover if your employer has an MOU with Equity Bank Kenya Limited. If you work for the government, you can be almost sure of your qualification for Equiloan.
However, the bank might deny you a loan if your credit history is poor. Check your CRB status as you learn how to get Equiloan from Equity Bank.
How much money can you receive from Equiloan?
Equity Bank will not deny you this loan product if you qualify for it. However, the amount it can deposit in your account can range from 100,000 to 5,000,000. You might get a big loan if you often use your Equity Bank account and your CRB record is good.
How long does it take to get your Equiloan?
Equiloan, unlike an Eazzy loan, entails some paperwork. Thus, you might wait two to four weeks after submitting your application. It is the top disadvantage of Equiloan. The approval process is usually slow, and you must accept and return your offer letter to receive your funds.