Berry Loan App: How it Works {Easy Loan Approval}

Berry loan is a type of unsecured personal loan that disburses loans without relying on the borrower’s assets for security. Berry loans are approved based on the borrower’s creditworthiness. Therefore, these types of personal loans are easy, fast, and instant to apply for and get approved for because they do not require any collateral or paperwork.

Berry loans are known as emergency loans that can be used for personal uses such as home improvement, medical expenses, debt consolidation, and other personal expenses. This lender is an online lender that uses machine learning systems to understand a customer’s financial capacity. The machine learning uses data from the user’s devices to check and calculate the credit limit.

How does a Berry loan work?

Berry loans work by underwriting and disbursing loans to borrowers regardless of their credit history. It means that even if you have a low credit score, you will still get approved for the loan. During the registration process, Berry reviews the borrower’s personal details such as monthly income, residential area, and household. The data collected through the app is used to create a customer profile.

Below is a summary table for the Berry loan features, such as interest rate charged on the loan, loan amount, credit limit, annual percentage rate (APR), loan repayment terms, origination fees and processing fees and charges, loan disbursement method, and speed, the eligibility criteria of the Berry loan, the pay bill number, contact details, loan purpose, and the approval process. All these concepts are important to understand before applying for any personal or unsecured loans.

Feature	Details
Loan Type	Unsecured Personal loan
Berry USSD code	None
Loan term	7-90 days repayment period
Interest Fee Range	2.08% on a daily basis and a 15% monthly interest rate
Processing Fee Range	25%
Berry Loan Limit Range	KSh 1000 – KSh 50,000
Berry loan Contacts	Email: [email protected], [email protected]
Max Effective APR	182.5%
Berry loan Pay bill	M-Pesa pay bill no. 977888
Late loan repayments	Incur a late fee of 2.5% per day

What is Berry loan App, and how does it work?

Berry loan app is a mobile application that allows users to apply and receive unsecured personal loans. Users can borrow money, repay, and manage their accounts through the app. The app works by assessing the user’s creditworthiness and disbursing the loan amount directly to their bank account. The Berry loan app does not require collateral and monitors repayment progress. The Berry app uses machine learning to train its models on user data retention and analyze user information collected during the registration process. Berry loan uses data from your phone including your handset details and financial transactions messages and your reason for borrowing. Berry loan app checks repayment history to build an individualized credit score and determine the loan offer suitable for the borrower.

How can I borrow a Berry loan without the app? You can apply and borrow for a Berry loan only through the app.

Berry Loan app Download

How to download the Berry app via the Google Play Store

To download the Berry Loan app, ensure you have enough data or are connected to WiFi. Then follow the steps below:

• Open the Google Play Store on your mobile device.
• In the search bar, type “Berry loan” to find the Berry loan app.
• Download and install the Berry app.

Berry Loan Registration and Application

How to Apply for a Berry Loan via Mpesa

To borrow money from Berry, one should have an Android phone with an M-Pesa line, and an Android smartphone should have a good internet connection. Once the app is downloaded and installed from the Google Play Store, follow through with the registration process, which takes around 5 to 10 minutes.

Before requesting a loan, one should register an account first. Below is a simple process to register and open an account with Berry and start borrowing. To apply for a Berry loan via M-Pesa, follow the steps below:

• Open the Berry App
• Sign in to register with Berry.
• Enter valid national ID details.
• Sign up to complete the registration. Enter the details accurately, and a one-time PIN will be sent to you, which you need to change to your own unique PIN.
• Proceed with the application process by answering a few questions.
• Choose a repayment date that works for you.
• Receive your money straight to your MPESA

How can I reset or change my PIN?

On the log-in page click on Forget password and input the mobile number you registered with then type the verification text given and submit. You will receive another verification code(OTP number) via SMS input the code select the new password of your choice then submit.

How to cancel Berry Loan Application

Berry loan cancellation involves stopping the loan application process. A customer does not have to cancel a loan application under the following circumstances:

• If the borrower has not completed and submitted the application
• If the borrower has already applied but has not yet cashed out
• If the borrower accepts Berry offer but has not yet cashed out

To cancel a Berry loan application one should do nothing and the loan cancelation will have been processed automatically.

How to delete Berry loan account? To delete your account with Berry , contact them through Email: [email protected] once you have completed repaying all debts if you have any outstanding debts to be cleared. If you have no pending dues, fix an appointment with the team to finish the formalities for closing your loan account.

How to check Berry loan application status?

To check Berry application status, just follow these steps:

1. Log in to the Berry app.
2. Go to the top part of your home screen and you will see the status of your application.

Berry loan Fees, Charges, and Interest rates

What is the interest rate for Berry loans?

The main disadvantage of unsecured personal loans is that the interest rates are charged higher with short-term repayment dates. The interest rate is the amount a lender charges a borrower and is a percentage of the principal—the amount loaned. The interest rate for Berry loans is between 2.08% daily plus a 20% excise tax on the negotiation fee.

What fees does a borrower incur processing a loan with Berry?

When applying for a personal loan with a lender, fees and charges should be determined and analyzed. The fees that a borrower might incur during a loan process include the following: Processing fees, prepayment charges, late payment penalties, documentation charges, insurance charges, loan cancellation charges, Underwriting fees, origination fees, Service fees, and tax-related fees on the personal loan disbursed. When processing a Berry loan the following fees will be charged:

Processing fees	25%
Prepayment charges	No prepayment fees
Underwriting fee	No Underwriting fees
late payment Fees	Berry charges a late payment interest fee of 2.5% per day
loan cancellation charges	No loan cancellation fee
origination fees	The origination fee varies based on credit disbursed and lender terms; however, generally, unsecured personal loans charge higher origination fee of up to 32%

How much is the processing fee for Berry loans?

Berry charges a one-time processing fee per loan. This fee is calculated as a percentage of the principal and is priced dynamically for each customer. The 78% of customers start at 15% and are eligible for fees as low as 5% as they build their credit history with Berry. The fee does not roll over or compound

The following is an example of fees calculated for a loan amount of KSh 4000. If a borrower receives KSh 4,000 and repays after 60 days, he/she would owe interest of 18%* (or KSh 720) and excise tax of 20% of interest (or KSh 144), which is a total payment of KSh 4,864   Breakdown:  KSh 4,000 (borrowed amount) + KSh 720 (interest)+ KSh 144 (excise tax) = KSh 4,864 (total payment).

Berry loan includes a service fee, which is a fixed fee based on the original amount of the loan. Other loans have a cost sometimes called an access or maintenance fee. These fees can be charged daily, monthly, or yearly. 

This type of fee can add up quickly becoming extremely expensive. When taking a loan with growing fees, it’s important to pay back the loan immediately because the longer you wait, the more you’ll pay. Let’s look at an example of both types of loans.

Tristram takes out two loans for 5,000 KSh. Loan A has a one-time service fee of 5% for 30 days. His service fee would be 250KSh. He would owe 5,250 KSh in total. Loan B has a one-time service fee of 1%, plus a daily fee of 30 KSh. It takes Richard 30 days to repay Loan B. On the first day of his loan, Tristram would owe: 

1% of 5,000 KSh = 50Ksh

• A daily fee of 30 KSh 

= 80 KSh in fees for that day. He would owe 5,080KSh total 

On the second day of his loan, Tristram would owe another 30 KSh, making his total 5,110 KSh. If Tristram waits 30 days to repay his loan, he would owe 950 KSh in fees, making his total repayment 5,950 KSh. It would be like his interest rate was 19%. Even though it looks like Loan B is cheaper at the beginning, look at what the long-term fees will be. Remember to review your exact loan or overdraft terms to understand exactly how much you owe and when. Keep an eye out for hidden fees — you don’t want to be surprised! Remember that there might be a transaction fee to transfer money as well. Take that into account.

Berry loan Eligibility Criteria

Eligibility criteria refer to a set of predefined standards or requirements that a borrower must meet to be considered for a particular loan. These criteria are used to determine who is qualified or suitable to get approved for the loan. For Berry loan offers the eligibility criteria can vary widely depending on the context and can include factors such as age, income, and credit score.

What are the requirements to apply for a Berry loan?

Borrowers applying for the Berry loans for the first time must check the prequalification and ensure they provide the right details. If you are applying for the loan the following are the requirements for Berry loans:

The following are the requirements-

• One must have a smartphone- that should be an Android smartphone. Because the Berry loan app is not currently available to IOS users.
• One must have a Valid National ID
• Have a valid phone number with an activated M-pesa account
• Place of Work

How much is a first loan at Berry?

The first-time loan at Berry varies depending on the creditworthiness of the borrower. This means that first-time applicants may not be eligible for higher loan limits or none, because of their poor credit score. However, borrowers having a low creditworthy may be eligible for lower credit limits in the range of Kes 1000 to Kes 2000 as first-time loans.

Why a borrower is not eligible for a Berry loan? The main reason a borrower is not eligible to get a Berry loan is that the system is unable to assign a credit limit mainly because of two reasons. The first reason is poor or low creditworthiness and secondly, because you may have provided incomplete and incorrect information during the application process. I recommend you reapply in the next 7 days if you are denied the loan for the first time.

Why is Berry not giving me a loan? Berry is not giving you a loan because the system in place failed to assign a credit limit. This is because you are not eligible for the loan.

How do I qualify for Berry loans? For you to qualify for Berry loans and get approved, you should provide correct information about yourself, for example, you should allow the app to access your messages so that the system can automatically check your creditworthiness and assign your credit limit. To allow the app to access your messages, go to Settings, click on apps and permissions, and Then Allow all permissions for the app. The main reason for qualifying for a Berry loan is to transact with the loan app once a day.

Berry Loan Repayment Methods

Loan repayment refers to the act of paying back money borrowed from a lender according to the terms agreed upon in a loan contract. This process involves a series of regular payments, often monthly, that cover both the principal amount (the original sum borrowed) and interest (the cost of borrowing the money). Loan repayment methods refer to the various strategies and schedules borrowers use to repay their Berry loans. Below is a list of ways to pay your Berry loan balance:

1. How to pay Berry loan via M-pesa using the Pay bill number

• Go to your Safaricom menu and select M-Pesa
• Select Lipa na M-Pesa
• Select the Pay Bill option
• Enter the business number 977888
• Enter your Berry registered phone number as the account number
• Enter your payment amount
• Enter your M-Pesa PIN
• Confirm that all details are correct and press \’ OK\’

2. How to repay Berry loan from the app?

• Step 1: Log in to your Berry app.
• Step 2: Tap “Make a payment” on the top part of your home screen.
• Step 3: Enter the amount you want to pay.
• Step 4: Select your preferred payment channel.
• Step 5: View the payment instructions and remember to:
• Note down your reference number
• Check the validity period of your reference number
• Follow the next steps written here to process your payment
• Step 6: Once your payment is successful, you will receive a notification and your updated balance will be reflected in your Berry app. 

Can I loan immediately after paying Berry? Yes, You can instantly request another loan on the Berry App after you finish paying an outstanding loan.

How do I check my Berry loan balance? To check your Berry loan balance, Log into the app and refresh the page using the repay button.

How to Increase Berry Loan Limit

Loan limit increase refers to an adjustment in the maximum amount of money that a lender is willing to lend to a borrower. To increase the Berry loan the following steps should considered:

• Maintain a Positive Credit Score
• Regular borrowing from Berry
• Timely loan repayments
• Keep Your Account Active
• Refer friends to Berry
• Request a Higher Limit
• Increase Mpesa transactions and retain messages
• Avoid Changing or Upgrading Your Phone
• Maintain a Stable Income
• Exercise Patience

Consequences for Defaulting on Berry Loan

Loan defaulting occurs when a borrower fails to meet the legal obligations or conditions of a loan agreement. This typically means that the borrower has not made the required payments on time or has stopped making payments altogether. The following will happen if you fail to pay your Berry loan balance:

You may be contacted by collections agents if you do not repay your loan on time. In the event of a long period of non-payment, you may be blacklisted from Berry and also reported to the relevant credit reference bureaus. Missing loan payments may result in late payment interest, lower loan limits, or the inability to get a subsequent loan from Berry as well as other lenders.

How much interest does Berry Charge for late payments?

Borrowers who are late on their loan beyond the original due date will be charged a late repayment Fee of  2.5% per day.

Berry loan History and the owner

Berry loan app is a loan product that was launched in 2019 owned and operated by FinBerry Capital Limited. FinBerry Capital Limited is the controller and responsible for your personal data. The loan product is a type of unsecured personal loan that offers financial assistance to customers with low cash flow and low credit history. The loan product is licensed and regulated by the Central Bank Of Kenya and is allowed to disburse up to a loan amount of Ksh. 50,000.