Timiza loan is a type of unsecured personal loan that disburses loans without relying on the borrower’s assets as security. Timiza 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.

Timiza 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 Timiza loan work?

Timiza 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, Timiza 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 Timiza 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 Timiza loan, the paybill 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
Timiza USSD code	*848#
Loan term	30-day repayment period
Interest Fee Range	1% to 3% on a daily basis and a 15% monthly interest rate
Processing Fee Range	5%
Timiza Loan Amount Range	KSh 1000 – KSh 250,000
Limit Increase	Grow to a limit of KSh 30,000 by timely repayments
Example Repayment (KSh 1,000 loan)	Principal: KSh 1,000 Interest Fee: KSh 290 Total Amount Due: KSh 1,290
Max Effective APR	182.5%
Service Fee	5%

Expert Tip Note

Expert Tip:

Unsecured personal loans often come with higher interest rates and additional fees compared to secured loans.

Check Out Most Preferred Personal Loans

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

Timiza loan app is a mobile application that allows users to apply for 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 Timiza loan app does not require collateral and monitors repayment progress. The Timiza app uses machine learning to train its models on user data retention and analyze user information collected during the registration process.

How can I borrow a Timiza loan without the app? To borrow a Timiza loan without the app, you should use the short USSD code *848#.

Timiza Loan app Download

How to download the Timiza app via the Google Play Store

To download the Timiza 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 “Timiza loan” to find the Timiza loan app.
Download and install the Timiza app.

Timiza Loan Application

How to Apply for Timiza Loan via Mpesa

To borrow money from Timiza , 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 open an account with Timiza and start borrowing. To apply for a Timiza loan via M-Pesa, follow the steps below:

Open the Timiza App
Sign in to register with Timiza.
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 to borrow Timiza loan using USSD

Borrowing money from Timiza using a USSD (Unstructured Supplementary Service Data) involves dialing codes made up of the characters that are available on a mobile phone. The USSD (Unstructured Supplementary Service Data) for Timiza is #848#. To apply or borrow Timiza loan using the USSD code follow the prompts below:

Open your phone app
Dial *848#
Enter your Pin
Select “Loan”
Choose “Request loan”
Select the loan limit
Wait for a message

How to cancel Timiza Loan Application

Timiza 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 Timiza offer but has not yet cashed out

To cancel a Timiza loan application one should do nothing and after 7 days the loan cancelation will have been processed automatically.

How to check Timiza loan application status?

To check Timiza application status, just follow these steps:

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

To Calculate loan repayment use our Calculator.

Timiza loan Fees, Charges, and Interest rates

What is the interest rate for Timiza 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 Timiza loans is between 1% – 3% daily plus a 20% excise tax on the negotiation fee.

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

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 Timiza loan the following fees will be charged:

Processing fees	5%
Prepayment charges	No prepayment fees
Underwriting fee	No Underwriting fees
late payment Fees	Timiza charges a one-time late payment interest fee of 5%
loan cancellation charges	No loan cancellation fee
origination fees	No origination
Service fees	0.5% – 30.50%

How much is the service fee for Timiza loans?

Timiza charges a one-time 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 Timiza. 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).

Timiza 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.

Timiza 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 Timiza 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 Timiza loan?

Borrowers applying for the Timiza 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 Timiza loans:

The following are the requirements-

One must have a smartphone- that should be an Android smartphone. Because the Timiza 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

How much is a first loan at Timiza?

The first time loan at Timiza 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 Timiza loan? The main reason a borrower is not eligible to get a Timiza 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 Timiza not giving me a loan? Timiza 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 Timiza loans? For you to qualify for Timiza 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 Timiza loan is to transact with the loan app once a day.

Timiza 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 Timiza loans. Below is a list of ways to pay your Timiza loan balance:

1. How to pay Timiza 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 300067
Enter your Timiza 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 Timiza loan from the app?

Step 1: Log in to your Timiza 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 Timiza app.

How to Pay Timiza using USSD code

Follow these steps to repay using the USSD: Dial *848#, Select “Loan”, Choose “Pay loan”, Enter the amount, Select Payment method, Enter Pin, and Click Ok.

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

How do I check my Timiza loan balance? To check your Timiza loan balance dial (*848#) and select loan balance and you will a short confirmation message about your loan balance.

How to Increase Timiza 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 Timiza loan the following steps should considered:

Maintain a Positive Credit Score
Regular borrowing from Timiza
Timely loan repayments
Keep Your Account Active
Refer friends to Timiza
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 Timiza loans

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 Timiza 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 Timiza 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 Timiza as well as other lenders.

How much interest does Timiza Charge for late payments?

Borrowers who are late or wish to extend their loan beyond the original due date will be charged a one-time 5% extension fee.

Timiza loan History and the owner

Timiza loan app is a loan product that was launched in March 2018 by ABSA Bank. Timiza has almost 5 million customers. 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. 250,000.