iPesa and Lendplus stand out among the top loan apps in Kenya. This is primarily due to their rapid approval processes and the ease with which users can access emergency funds through M-Pesa.
Deciding between these two options can be challenging, as both apps offer appealing and user-friendly features. This article will explore the key differences between iPesa and Lendplus to help you make an informed decision based on your specific financial needs.
Loan Amounts and Repayment Terms
iPesa provides loan amounts from Ksh 500 up to Ksh 50,000, but with shorter repayment periods of 91 to 180 days. Additionally, iPesa allows borrowers to repay their loans in monthly installments, offering greater flexibility in managing repayments.
In contrast, Lendplus offers loans ranging from Ksh 1,000 to Ksh 50,000, with repayment periods spanning from 61 to 365 days. The extended repayment terms allow borrowers more time to settle their loans, making it a suitable option for those who need a longer period to pay off their debts.
Interest Rates
The cost of borrowing varies considerably between these two platforms. iPesa’s interest rates range between 36% and 72% annually, depending on the loan amount and duration.
Conversely, Lendplus imposes a daily interest rate of 2.2%, which can lead to significant interest accumulation if the loan is extended over a long period. While iPesa’s rates are calculated annually, Lendplus’s daily interest rate might be more advantageous for short-term loans but could become less favorable for longer-term borrowing.
Service Fees and Penalties
Lendplus may impose late fees if repayments are delayed, while iPesa prides itself on not charging any additional service fees beyond the interest on the loan. This clear and straightforward fee structure could be appealing to borrowers seeking transparency, whereas Lendplus’s potential for additional charges might be a disadvantage if you’re uncertain about your ability to repay on time.
Read: The Top 10 Loan Apps With the Lowest Interest Rates in Kenya
Eligibility Criteria
iPesa is available to any Kenyan citizen aged 18 or older who has an M-Pesa account. This broader accessibility makes iPesa an attractive option for younger individuals, students, or those without formal employment.
On the other hand, Lendplus has more stringent eligibility requirements compared to iPesa. To qualify for a Lendplus loan, you must be a Kenyan citizen aged between 23 and 60, with either employment or a stable source of income.
Privacy and Data Use
Both Lendplus and iPesa utilize user data to evaluate creditworthiness. However, iPesa places a strong emphasis on privacy and data security, ensuring that all personal data, such as SMS history used for identity verification, is encrypted and not shared with third parties.
Lendplus does not provide as much detail about its privacy practices, which could be a concern for users who prioritize data security. The app notes that electronic storage can be accessed from various countries, potentially increasing privacy risks.
NB: Lendplus might be the better option for those who require longer repayment terms and can meet the stricter eligibility criteria. However, iPesa offers greater flexibility in repayment and a transparent fee structure, making it accessible to a wider range of users.