How to repay your iPesa loan– There’s always an inherent sense of relief once you’ve successfully borrowed money when you need it the most. However, the cycle doesn’t stop there. The next big step is loan repayment, and today we’ll be focusing on how to repay your iPesa loan.
iPesa, developed by XGO Kenya Limited, has turned loan repayment into a walk-in-the-park, thanks to the iPesa Paybill number, also known as the business number. Let’s walk you through how this process works.
iPesa: Making Loan Repayment Easier
iPesa has crafted a simple loan repayment process. They have implemented a pay bill number that permits users to make payments straight from their Safaricom line. With the iPesa paybill number 192010, customers can pay off their loans conveniently, anytime, anywhere. See one of the best loans in Zambia; Lupiya Personal Loans in Zambia &; Borrow Up to K20,000 and Lupiya Loans for Civil Servants &; Fixed Term Loans
Competitive Interest Rate
iPesa also offers one of the most competitive interest rates among new loan apps in Kenya. When you repay your iPesa loan, you will be charged a 12% APR with a 0% service fee.
Escaping the Hassle of Queue
Let’s be honest; queuing can be a real downer. iPesa offers relief from this with its straightforward online process. Let’s now look at the detailed procedure for how to repay your iPesa loan.
A Detailed Guide to Repaying Your iPesa Loan
It’s crucial to understand the repayment process when dealing with loans, and iPesa makes this process seamless and user-friendly. Here’s a more comprehensive look at how to repay your iPesa loan:
Step 1: Confirm Repayment Amount
Start by opening the iPesa loan app on your device. The home screen will show you the outstanding loan amount. Confirm this amount and note it down, as you will need it for repayment.
Step 2: Access M-Pesa Menu
Once you have confirmed the amount to repay, move to the next step. This involves opening the m-pesa menu on your phone. This is the platform that will facilitate the repayment transaction.
Step 3: Select the Payment Option
In the m-pesa menu, you’ll find an option labeled ‘Lipa na m-pesa’. This is the payment option you need to select. “Lipa na m-pesa” is a service that allows users to make payments directly from their m-pesa account to a paybill number.
Step 4: Choose Paybill
After selecting ‘Lipa na m-pesa’, choose the ‘pay bill’ option. A pay bill is a cash collection service that allows organizations to collect money regularly from their customers through M-Pesa.
Step 5: Enter Paybill Number
You must now input the iPesa paybill number, which is 192010. This number is unique to iPesa and is the account your repayment will be directed to.
Step 6: Enter the Account Number
Next, enter your account number. This isn’t a different number you need to remember, it’s simply your mobile phone number. iPesa uses your phone number as your account identifier.
Step 7: Input Repayment Amount
You’ll input the loan amount you noted from the iPesa app in the first step. This is the total amount you want to repay.
Step 8: Confirm the Transaction
After inputting the repayment amount, you can press OK to continue. This action confirms that you have input the correct information.
Step 9: Enter M-Pesa PIN
For security purposes, m-pesa requires you to input your m-pesa PIN. This is a personal identification number that authorizes the transaction.
Step 10: Final Confirmation
Before the transaction is processed, you can confirm the details one last time. Press OK once you’re satisfied that all the details are correct.
Step 11: Wait for the Confirmation Message
Now, all you need to do is wait. M-pesa will reply with a confirmation message shortly, acknowledging receipt of the transaction.
Step 12: iPesa Repayment Confirmation
Finally, once the transaction is successful, you’ll receive an SMS from iPesa. This message confirms that your loan payment has been received and successfully applied to your balance.
By following these steps carefully, you’ll have a hassle-free experience repaying your iPesa loan.
iPesa Paybill Number
The iPesa paybill number is 192010. Just follow the above steps, and you can repay your loan hassle-free.
Understanding Repayment Period
For first-time iPesa users, the loan repayment period is 15 days. After a successful first repayment, you can borrow another loan using the app. For all subsequent loans, the repayment period extends to 91 days.
iPesa Interest Rate: A Closer Look
Understanding the interest rate attached to a loan is vital before you commit to borrowing. IPesa’s loan structure has been designed to be as straightforward and customer-friendly as possible.
When you apply for a loan from iPesa, your interest rate is a standard 12% APR. There is also a 0% service charge. This means that iPesa doesn’t charge you any extra fees for the service they provide; the only cost you incur is the interest on your loan. Related Step-By-Step Guide: how to pay zamcash using Airtel money in 2023
Let’s illustrate this with a practical example. Suppose you qualify for a loan of Ksh 500. With the 12% APR interest, you’ll be charged an additional Ksh 60. So, in total, you’ll repay Ksh 560. Here’s the math behind it:
- Principal amount (the original loan amount) = Ksh 500
- Interest rate = 12%
- Interest amount (12% of 500) = Ksh 60
- Total amount to repay = Principal + Interest = Ksh 500 + Ksh 60 = Ksh 560
This simple calculation shows how much you will need to repay, keeping your financial planning transparent and easy to manage.
However, it’s crucial to note that for new iPesa users, your first loan may come with a slightly higher interest rate of 15%. Why is this so? Digital lending platforms like iPesa consider various factors when determining a borrower’s eligibility and interest rate. These factors include the borrower’s credit score, repayment history of any previous loans, and the borrower’s financial capability to repay the loan.
As a new user, these factors are still relatively unknown to iPesa; hence, a higher interest rate is charged to mitigate the associated risk. Over time, as you build a solid repayment history and a good relationship with iPesa, you’ll start enjoying the standard interest rate.
Overall, iPesa’s interest rate structure and the transparency it offers allow borrowers to have a clear picture of their financial commitment, thereby enabling them to plan their repayments more effectively.
The Consequence of Late Payments
Can you extend your loan repayment time? This is a common question among borrowers. iPesa, unfortunately, doesn’t allow for loan extensions. It is, therefore, crucial to ensure you’ve repaid your loan within the time frame provided by the app.
So, what happens if you fail to repay your loan on time? iPesa takes late payments very seriously. For delayed payments, iPesa charges 2% daily on the loan amount. So always strive to pay off your debts promptly to avoid these penalties.