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According to reports, KCB MPESA, despite competition from Fuliza and other lenders, recorded revenue of Ksh 600 million after disbursing Ksh 42 billion in the year ending March 2023. But even so, so many borrowers have been blacklisted for default and can’t help but struggle with what to do with their KCB MPESA loan after CRB listing.
Ideally, you should pay your outstanding KCB loan after the CRB listing, obtain CRB clearance, and rebuild your already damaged credit record. The credit record rebuild may involve several strategies, such as saving with KCB MPESA and using MPESA services often.
I’ll take you through paying your outstanding KCB MPESA loan, obtaining CRB clearance, and rebuilding your damaged credit score. The end goal is to not only stay away from CRB listing but also to reclaim your stained credit reputation and stay debt-free.
Here’s basically what we’ll talk about:
- What happens if I don’t pay my KCB MPESA loan on time?
- Can KCB MPESA list you on CRB?
- What are the consequences of KCB MPESA loan CRB listing?
- How long does the KCB MPESA CRB listing last?
- What should I do after the KCB MPESA loan CRB listing?
- What should I do if my KCB MPESA loan is declined due to a late payment?
- How can I avoid the KCB MPESA CRB listing?
Here we go!
What Happens If I Don’t Pay My KCB M-PESA Loan in Time?
Generally, KCB MPESA loans have a 30-day repayment period, when the loans attract an interest of 7.5%. If you don’t pay the loan plus interest within 30 days, KCB MPESA extends the repayment period by another 30 days, but the extension attracts a higher interest rate.
You can expect the lender to send you frequent reminders of your overdue loan once the first 30 days elapse. However, if you don’t pay the loan after 60 days, the lender will wait until the 90th day before they can forward your name to CRB for blacklisting.
Can KCB MPESA List You On CRB?
As I explained, KCB MPESA can forward your name to CRB for negative listing. They, however, give you enough time to try and repay the loan before taking up this step. Overall, it may take up to 90 days before they can forward your name to the Credit Referencing Bureau.
KCB MPESA Loan Defaulters Consequences
Overall, CRB listing comes with some severe consequences, which include the following:
- Negative credit rating – CRB listing negatively impacts your credit score. Your rating drops when you get blacklisted by the Credit Sherriff, and that has severe implications on future loan applications.
- Future loan denials – A low credit score makes you credit-unworthy. KCB MPESA and other lenders will look at your credit score and possibly deny you a loan because of your damaged credit reputation.
- Stringent future loans – Though some lenders offer loans without CRB check, their loan terms are pretty strict. You may have to pay a higher interest, repay the loan within a shorter time, and sometimes even be forced to provide security before getting the loan.
- Missed job opportunities – Most employers, especially in the Public Service, require CRB clearance before considering your job application. You’ll have difficulty getting the KCB MPESA CRB clearance if you default on your KCB MPESA loan and your name is on CRB’s watch list.
- Missed promotions and career advancements – It’s not just the job opportunities that one can miss due to negative CRB listing but also promotion and career advancement opportunities. Most employers will refer to Section 20, Part 3 & 4 of the Public Officer Act, which insists on the importance of public servants having integrity. So, a negative CRB listing counts as an automatic disqualification in such a case.
- Prolonged record archiving – Though you may clear a KCB MPESA loan after CRB listing, it doesn’t automatically clear your name from public records. Your details may remain in the public domain for up to 5 years, and you don’t want that.
How Long Does KCB MPESA Blacklist Last?
The time frame that a KCB MPESA loan CRB listing last depends on the reason behind the blacklisting and how soon you clear the outstanding loan. In some cases, the blacklisting lasts up to 12 months.
But again, if you are fast in paying the loan and rebuilding your credit record, the negative listing may stay a short while.
Note, however, that the records stay in public archives for up to 5 years, as I explained earlier. So, you may be out of CRB blacklisting, but that doesn’t clear your name from public records immediately. It may take some time.
What Should I Do After KCB MPESA Loan Blacklisting?
A KCB MPESA loan delisting shouldn’t be a death sentence. You can still claim your lost credit reputation and regain your creditworthiness. That’s possible using these three steps:
Step 1 – Clear the existing loan
Before anything, you have to pay what you owe if you want to get out of CRB. Here’s how to pay your existing KCB MPESA loan:
- Go to the MPESA menu on your phone
- Pick Loans & Savings, and then KCB MPESA
- Opt for Pay Loan
- Choose to pay from MPESA or KCB MPESA savings
- Enter the amount to pay and follow the prompts
Alternatively, you can pay your KCB MPESA loan using the pay bill option as follows:
- Go to MPESA on your phone and then Lipa Na MPESA
- Choose pay bill and enter the Business Number 522 559
- Enter the borrower’s ID under the account number
- Input the amount and follow the subsequent prompts
Step 2 – Obtain CRB Clearance
Now that you’ve cleared your existing KCB MPESA loan, you can obtain clearance from the Credit Referencing Bureau. KCB MPESA reports mainly to Metropol and TransUnion.
a) Metropol CRB
Visit the Metropol website or use the Metropol Crystobol mobile app or the USSD code *433# and pay Ksh 50 to register via the pay bill number 210 384. You’ll need to enter your ID as the account number to receive a reference number, PIN, and unique link.
Metropol requires you to pay Ksh 250 to know who has blacklisted you (which may be unnecessary once you realize it’s KCB MPESA) and Ksh 2200 to obtain the CRB clearance certificate.
b) TransUnion CRB
Send your name and ID to 21272 and choose Credit Status (CS) to sign up on TransUnion. You must pay Ksh 650 for the CRB Credit Report and Ksh 2,200 for the clearance certificate.
Step 3 – Rebuild your credit reputation
Now that you have the clearance from CRB, it’s time to claim your lost glory. You’ve to repair your already tarnished credit reputation, and that involves these tips, among many others:
- Save with KCB MPESA – You should build trust with KCB MPESA again, which often involves saving with them. The more you save, the more you improve your credit record, and though it may take time, it’ll happen at some point, and you’ll even be eligible for loans again.
- Use MPESA services often – KCB MPESA also monitors your MPESA transaction, and the more you use MPESA services, the more you repair your damaged credit reputation.
- Apply for smaller loans and repay them quickly – Once you again qualify for loans, pick the smallest and pay them as soon as possible. Mark you; I’m not encouraging you to get into debt as we don’t advocate for debt, but the idea is to use this strategy to rebuild your damaged credit reputation.
What to Do in Case of a KCB MPESA Loan Declined Due to Late Payment
Sometimes, KCB MPESA may deny you a loan due to a late repayment. In such a case, do the following:
a) Contact the lender
Knowing why the lender doesn’t want to give you the loan is essential. Yes, it could be because of late repayment, but it could also be because of another reason, such as CRB blacklisting. So, contact them to get the clarification.
Here are the KCB MPESA loan contacts you can use to reach out to the lender:
- Call: 0711 087 087/0732 187 000
- WhatsApp: 0711 087 087
- Website Live Chat: Safaricom.co.ke or KCBgroup.com
b) Obtain a CRB clearance certificate if blacklisted
One of the reasons the lender is likely to give you for denying your loan request is CRB blacklisting. If so, ensure you pay the loan in full and use the tips I shared to obtain clearance from CRB.
What to Do Avoid KCB MPESA CRB Blacklisting
Judging by the consequences of negative listing, CRB blacklisting isn’t a good thing. It’s something you would rather avoid, and that involves the following:
a) Pay an existing loan
Before KCB MPESA forwards your name to CRB for negative listing, they usually send you several reminders and up to 90 days to pay. You should take advantage of this window to do just that and stop them from listing you with CRB.
b) Get CRB clearance
If you find your name on CRB’s watch list, you should plan to get out of there. That again requires you to settle what you owe the lender and obtain the CRB clearance certificate.
c) Offer collateral
If you must borrow, consider offering collateral instead. If you cannot pay, the lender may take the collateral instead of listing your name with CRB. So, your credit reputation will remain intact.
d) Save up
The best way to avoid borrowing is to learn how to save money. Once you’ve some money saved up and a fully funded emergency fund, you won’t have to borrow from KCB MPESA or any other digital lender.
e) Create an extra income source
If the money you are making is insufficient and you have difficulty saving it, consider looking for another income source, an extra one. You can try offline side hustles or online jobs to generate some extra income, which could save you from relying on emergency mobile loans.
In Conclusion
I’ve shared what you ought to do with a KCB MPESA loan after CRB listing. In summary, you should repay the loan, get out of CRB, and rebuild your stained credit reputation.
As Cent Warrior, we aim to see you stay debt-free, have a credit reputation you can be proud of, and build a healthy financial life. That’s why we came up with ‘Winning Against the Game of Debt,’ a book designed to help people struggling with debt come out of it and enjoy the financial freedom they crave.
You can check the book out and many other beneficial financial resources on our online store and get to kick-start your walk to financial independence.
