Do not be deceived, Equitel Eazzy Loan is not more expensive than M-Shwari

If you ever wanted a reason to ditch the M-Shwari Loan for the affordable Equitel Eazzy Loan, then this is it.

With the reduction in interest rates to 14% in line with the new Banking Act, there has been confusion as to whether the new rates apply to mobile loans as well, with some banks specifically CBA stating that their mobile credit facilities (M-Shwari) don’t charge interest but rather a facilitating fee and thus not subject to the new rates. However, banks like Equity, which was the first to apply the new rates to its Equitel Eazzy Loan, interpret the Banking Amendment Act 2016 to mean all credit facilities are subject to the new rates. This means that its mobile loans will be charged an interest rate of 1.16% per month on a reducing balance. Other banks have recently followed suit on their mobile-based loans.

However, with this announcement came a hullabaloo about banks introducing new charges on their loans. But let’s get it right. These charges have always been there. Equity Bank is charging a 1% Loan Appraisal Fee plus a government tax (excise duty) of 10% on the Appraisal fee.

Even with these charges, Equity Bank mobile loans are still among the cheapest in the market especially when compared to other banks that either charge higher interest rates of 7.5% per month or higher Loan Appraisal Fees on the loan amount as demonstrated below:

So what does this mean for Eazzy Loan customers in terms of charges?

E.g If Musa borrows   Kshs. 1,000

Loan Appraisal Fee is= 1% of Kshs. 1,000

                                 =  Kshs. 10

Excise Duty Imposed= 10% of Loan Appraisal Fee (see above)

                                    = 10% of Kshs. 10

                                    =Kshs. 1

Therefore, total charges are Kshs. 11 (one off) as well as the interest rate of 1.16% per month (reducing balance). The overall percentage for an Equitel Eazzy Loan therefore comes to around 14%  per annum which is within the Banking Act 2016.


 Getting the loan doesn’t have to be stressful as you don’t need a letter from your employer or pay slips. You don’t even have to fill any forms. Just do the loan application right on your phone! You can borrow from Ksh 100 to Ksh 3 Million and repay it within 12 months. Once you’re ready, you can use your phone to repay your loan!



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