ABSA Bank Kenya provides diverse loan products tailored for personal, business, and housing needs, emphasizing flexibility and competitive terms. Below is a summary table of key loans, eligibility criteria, and indicative rates based on current offerings.
| Bank | Loan Name | Eligibility Criteria | Interest Rates/Fees |
|---|---|---|---|
| ABSA Kenya | Personal Loan | Salaried/contract employees; min. income KES 35,000; age 18+; check-off agreement preferred | 14%-20% APR; up to KES 6M, 96 months |
| ABSA Kenya | Scheme Loan | Employees from partnered employers; salary deduction via payroll | Similar to personal (14%-20% APR); up to KES 6M |
| ABSA Kenya | Business Loan | Business 3+ years; min. KES 100K facility | Variable/fixed; unsecured up to KES 6M, 60 months |
| ABSA Kenya | Home Loan (Mortgage) | Affordability-based; up to 90% property value; Kenyan residents/diaspora | 14.6% p.a. reducing; KMRC option 9% fixed up to KES 10.5M |
| ABSA Kenya | LPO Financing | Valid LPO from approved clients; business trading history | Unsecured up to KES 12M; competitive rates |
1. Personal Loan
ABSA's Personal Loan offers unsecured funding up to KES 6 million without collateral, ideal for emergencies, education, or lifestyle needs. Eligibility targets salaried individuals or self-employed with stable income from KES 35,000 monthly, requiring recent payslips, ID, and proof of employment; repayments up to 96 months via debit order from an ABSA account. Interest ranges 14%-20% APR based on credit profile, with added credit life insurance covering death or disability.
2. Scheme Loan
This variant suits employees from employers with ABSA check-off agreements, enabling direct salary deductions for seamless repayments. Qualification mirrors personal loans but prioritizes partnered firms, with limits tied to income—up to KES 6 million for premier clients earning over KES 300,000. Terms extend to 96 months at 14%-20% APR, minimizing default risk through payroll integration and including insurance benefits.
3. Business Loan
Designed for SMEs and corporates, ABSA Business Loans provide unsecured options up to KES 6 million (60 months) or secured terms up to 10 years. Businesses must operate 3+ years with minimum KES 100,000 facility; requirements include financial statements, business registration, and collateral for larger amounts. Borrowers select variable or fixed rates with principal-plus-interest or interest-only options, supporting working capital or expansion.
4. Home Loan (Mortgage)
ABSA Home Loans finance property purchase or construction, offering up to 90% of value or KES 10.5 million via KMRC partnership. Eligibility assesses affordability, income stability, and property charge as security; diaspora Kenyans qualify too, with 25-year terms at 14.6% reducing balance or 9% fixed for affordable housing. Applications need valuation reports, title deeds, and payslips, ensuring long-term homeownership accessibility.
5. LPO Financing
Tailored for verified purchase orders, this unsecured facility reaches KES 12 million, funding supply contracts without collateral. Eligible businesses present valid LPOs from ABSA-approved clients, plus trading history and cash flow proof. Repayment aligns with invoice settlement; rates stay competitive, often lower due to low risk, making it vital for government or corporate suppliers in Kenya.
6. Overdraft Facilities
ABSA overdrafts offer revolving credit linked to current accounts, covering short-term cash shortfalls for personal or business use. Access requires existing ABSA relationship, good credit history, and income verification; limits depend on turnover or salary. Rates hover around personal loan levels (14%-20%), with daily interest on drawn amounts, providing flexibility over lump-sum loans.
ABSA Bank Kenya structures its loans around customer segments like Premier (high earners) and Prestige, with tiered limits—KES 6 million max for Premier versus lower for standard. Processing typically takes days for salaried applicants, faster via mobile app or branch with pre-approved status. Fees include a one-time facility charge, but no early settlement penalties encourage discipline.
Eligibility universally demands Kenyan ID/passport, CRB clearance (no adverse listing), and three months' bank statements or payslips. Self-employed need audited accounts or revenue proof. Rates fluctuate with CBR trends—currently around 12-13% base—pushing effective APRs higher based on risk.
Application steps streamline digitally: register on ABSA app/website, select product, upload docs, and receive provisional offer. Branch visits finalize with signatures. Diaspora applies via email with notarized docs.
For Nairobi residents or Kenya-wide, ABSA's 50+ branches and agents ensure accessibility, partnering with saccos for rural reach. Comparing to peers like Equity or KCB, ABSA excels in tenure flexibility and insurance inclusions, though rates align market averages.
Business growth hinges on such financing; a trader securing LPO funds can fulfill KES 10 million orders, scaling operations. Personal loans similarly empower education investments yielding higher earnings.
Risk management is key—borrow only what monthly obligations allow (under 40% debt-to-income). Use ABSA's online calculator for simulations.
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