Chapaa loan is a type of unsecured personal loan that disburses loans without relying on the borrower’s assets for security. Chapaa 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.
Chapaa loans are emergency loans disbursed for personal purposes such as home improvement, medical expenses, debt consolidation, and other personal expenses. Chapaa Loan is a digital lender that uses machine learning systems to understand a customer’s financial capacity. The machine learning system uses data from the user’s devices to check and calculate the credit limit.
How does Chapaa Loan work?
Chapaa loans work by underwriting and disbursing loans to borrowers regardless of their credit history. The loan app approves loan amounts to borrowers based on individual creditworthiness. During the registration process, Chapaa 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 and measure creditworthiness.
Below is a summary table for the Chapaa loan features, such as interest rate charged on the loan, loan amount, annual percentage rate (APR), loan repayment terms, origination fees and processing fees and charges, loan disbursement method, speed, the eligibility criteria of the Chapaa 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 |
| Chapaa USSD code | None |
| Loan term | The shortest duration is 7 days, and the longest is 365 days. Loan repayment varies based on terms. |
| Loan Disbursement decision | It takes less than 5 minutes to get the loan |
| Interest Fee Range | 0.065%–0.14% daily interest rate, 1.95%–4.2% monthly interest rate |
| Chapaa Loan Limit Range | KSh 1000 – KSh 60,000 |
| Chapaa loan customer care Contacts | Telephone: +254748954234 Email: [email protected] |
| Max Effective APR | Minimum 24% to Maximum 50% |
| Chapaa Paybill No. | Has no M-Pesa pay bill |
| Late loan repayments | Incur a late fee of 2% per day |
What is Chapaa loan app, and how does it work?
Chapaa Loan App is a mobile application that allows users to apply and receive unsecured personal loans. Users can borrow money, repay it, and manage their accounts through the app. The app works by assessing the user’s creditworthiness and disbursing the loan amount directly to their M-Pesa account. The Chapaa loan app does not require collateral and monitors repayment progress. Chapaa loan app uses machine learning to train its models on user data retention and analyze user information collected during the registration process. According to Chapaa loan terms of service, the loan app uses data from the user’s phone, including handset details, financial transaction messages, and reason for borrowing, to assign loan limits. Chapaa loan app checks repayment history to build an individualized credit score and determine whether the loan offer is suitable for the borrower.
Is Chapaa a legit loan app? No, among our list of licensed digital lenders and our dedicated team of researchers, we have not confirmed Chapaa loan as approved by the Central Bank of Kenya. To confirm our list of licensed digital lenders, read this pdf about list digital lending companies that are licensed and regulated by the Central Bank of Kenya.
How can I borrow a Chapaa loan without the app? You can not apply Chapaa loan without an app. To borrow a Chapaa loan only access it through the app.
Chapaa Loan app Download
How to download the Chapaa app via the Google Play Store
To download the Chapaa 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 “Chapaa Loan” to find the Chapaa loan app.
- Download and install the Chapaa app.
Chapaa Loan Registration and Application
How to Apply for Chapaa Loan to M-Pesa
To borrow money from Chapaa, 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 minutes.
Before requesting a loan, one should register an account first. Below is a simple process to register, open an account with Chapaa, and start borrowing. To apply for a Chapaa loan to M-Pesa, follow the steps below:
- Open the Chapaa App
- Sign in to register with Chapaa.
- 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, and then submit.
How to Cancel Chapaa Loan Application
Chapaa 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 Chapaa offer but has not yet cashed out,
To cancel a Chapaa loan application, one should do nothing, and the loan cancellation will be processed automatically.
How can I delete my Chapaa loan account? To delete your account with Chapaa, contact them through email at [email protected] once you have completed repaying all debts. If you have any outstanding debts to be cleared and no pending dues, fix an appointment with the team to finish the formalities for closing your loan account.
How do I check a Chapaa loan application?
To check the Chapaa application status, just follow these steps:
- Log in to the Chapaa app.
- Go to the top part of your home screen and you will see the status of your application.
Chapaa loan Fees, Charges, and Interest rates
What is the daily interest rate for Chapaa loans?
The daily interest rate for Chapaa loans is between a minimum of 0.065% and a maximum of 0.14%, plus a 20% excise tax on the negotiation fee.
What is the monthly interest rate for Chapaa loans?
The monthly interest rate for Chapaa loans is between a minimum of 1.95% and a maximum of 4.2%, plus a 20% excise tax on the negotiation fee.
What fees does a borrower incur when processing a loan with Chapaa?
When applying for a personal loan with a lender, fees and charges should be determined and analyzed. The fees that a borrower incurs 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 Chapaa loan, the following fees will be charged:
| Processing fees | There is no loan processing fee |
| Prepayment charges | No prepayment fees |
| Underwriting fee | No Underwriting fees |
| late payment Fees | Chapaa charges a late payment interest fee of 2% per day |
| loan cancellation charges | There is 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% |
| Service Fee | 5% |
How much is the service fee for Chapaa loans?
Chapaa charges a one-time service fee per loan based on loan disbursed. This fee is calculated as a percentage of the principal and is priced dynamically for each customer. 65% of customers start at 10% and are eligible for fees as low as 5% as they build their credit history with Chapaa. The fee does not roll over or compound
The following is an example of fees calculated for a loan amount of KSh 5,000. If the loan amount is Ksh 5,000 and the APR is 31% with a tenure of 91days
Interest = 5000 Ksh * 31% / 365 * 91 = 386 Ksh
You will get Ksh 5000 and should repay Ksh 5,386 (5000 + 386) after 91 days.
Chapaa 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 Chapaa loan offers, the eligibility criteria vary depending on the context, and factors such as age, income, and credit score are determined.
What are the requirements to apply for a Chapaa loan?
Borrowers applying for Chapaa 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 Chapaa loans:
- One must have a smartphone (Android or iPhone)
- One must have a Valid National ID
- Have a valid phone number with an activated M-Pesa account
- Place of Work
- Age between 18 and above
How much is a first loan at Chapaa?
Borrowers with low creditworthiness may be eligible for lower credit limits in the range of Kes 500 to Kes 2000 as first-time loans. The first-time loan at Chapaa 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.
Why is a borrower not eligible for a Chapaa loan? The main reason a borrower is not eligible to get a Chapaa 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, 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 Chapaa not giving me a loan? Chapaa 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 Chapaa loans? For you to qualify for Chapaa 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 Chapaa loan is to transact with the loan app once a day.
Chapaa 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 Chapaa loans. Below are ways to pay Chapaa loan balance:
- Log in to your Chapaa app.
- Click “Repay loan”
- Choose one of your loans
- Click Repay in Advance.
- Confirm that all details are correct
- Choose your payment method
- Press “Repay now.”
- Complete your Repayment
- Once your payment is successful, you will receive a notification, and your updated balance will be reflected in your Chapaa app.
Can I borrow immediately after paying Chapaa loan? Yes, you can instantly request another loan on the Chapaa app after you finish paying an outstanding loan. If you have defaulted on the loan initially your loan limit will be reduced and chances of borrowing a loan becomes low.
How do I check my Chapaa loan balance? To check your Chapaa Pesa loan balance, log into the app and refresh the “loan page” from the menu bar to check loan history.
How to Increase Chapaa Pesa 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 Chapaa loan, the following steps should be considered:
- Maintain a Positive Credit Score
- Regular borrowing from Chapaa
- Timely loan repayments
- Keep Your Account Active
- Request a Higher Limit
- Increase M-pesa transactions and retain messages
- Avoid Changing or Upgrading Your Phone
- Maintain a Stable Income
- Exercise Patience
Consequences for Defaulting on Chapaa Loan
Loan default 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 Chapaa loan balance on time:
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 Chapaa loans and also reported to the relevant credit reference bureaus after seven (7) days’ notice to you. Missing loan payments may result in late payment interest, lower loan limits, or the inability to get a subsequent loan from Chapaa as well as other lenders.
How much interest does Chapaa charge for late payments?
Borrowers who are late on their loan beyond the original due date will be charged a late repayment Fee of 8% per month. Chapaa reports that a maintenance fee will charged when loan due date hits in addition to penalty fee.
Can Chapaa loan app list me on CRB?
Yes, according to their terms of service, you will be reported to Credit Reference Bureaus after seven (7) days’ notice to you.
Can Chapaa loan app come to my house?
No, this act depends on the loan terms and the debts collectors handling the situation. Responsible debt collectors should not go defaulters houses this creates insecurity.
Can I request a Chapaa loan extension?
Yes, you can request the extension by contacting +254748954234 to open an extension. After opening a loan extension, you must login to the app, apply for an extension on the home page, and pay the extension fee within 24 hours.
Will the loan attract penalties once I extend it? No, the loan won’t be charged an overdue fee for the period of extension; the collection process will start at the end of the extension period.
How long is the extension period? Chapaa loan extension period equals the number of days that the loan was originally given.