You have a brilliant business idea or an existing venture that needs capital, but you don’t own any assets to use as security, such as land or a car. The banks keep asking for collateral you don’t have. Here’s the good news—several banks in Kenya now offer business loans without collateral. This updated 2026 guide shows you exactly where to get funding based on your business performance, not your property.
1. KCB Bank—Boresha Biashara Loan
KCB Bank supports SMEs through their Biashara Club, providing loans to business account holders with good transaction history. No collateral is needed for amounts below KES 5 million.
Loan Details:
- Amount: KES 5,000 – KES 1,000,000
- Interest Rate: 13% per annum
- Negotiation Fee: 3% (one-time)
- Insurance Fee: 0.85% per annum
- Repayment Period: Up to 36 months
- Collateral: None for amounts below KES 500,000. For amounts above KES 500,000, security may include title deeds, cash cover, livestock, logbooks, or shares
Requirements: ✔ KCB business account (active for at least 6 months)
✔ Business operating for at least 1 year
✔ Regular cash flow to meet monthly repayments
✔ National ID and passport photo
✔ KCB account statement for the last 6 months
✔ Proof of business ownership
✔ Guarantor with a KCB account (for unsecured loans)
Best For: Micro-businesses, traders, and small retailers with consistent cash flow
2. Equity Bank—Fanikisha Loan
Equity Bank’s Fanikisha loan targets women entrepreneurs who may not own traditional assets, providing financial empowerment through unsecured lending.
Loan Details:
- Amount: Varies by group size and structure
- Interest Rate: Based on Equity Bank Reference Rate (EBRR) + Margin
- Repayment Period: Up to 18 months
- Collateral: None required
Requirements: ✔ Women’s groups of 7-30 members (depending on product tier)
✔ Active Equity Bank account
✔ Business training participation
✔ Group registration documents
✔ National IDs of all members
✔ Meeting minutes and group constitution
Best For: Women entrepreneurs, female-led businesses, chamas, and women’s groups in retail, agriculture, or services
3. Absa Bank—Wezesha Biashara
Absa’s Wezesha Biashara programme offers unsecured business loans up to KES 10 million, LPO financing up to KES 12 million, and fast processing through Wezesha Express within 48 hours for loans up to KES 3 million.
Loan Details:
- Amount: Up to KES 10,000,000 (unsecured)
- Express Loan: Up to KES 3,000,000 (48-hour approval)
- Interest Rate: Variable or fixed rates available
- Repayment Period: Flexible terms
- Collateral: None required
Requirements: ✔ Active Absa Bank business account
✔ Business operating for at least 6 months
✔ Proof of consistent revenue
✔ Certificate of incorporation/business registration
✔ KRA PIN certificate
✔ Business bank statements (6 months)
✔ National IDs of directors/signatories
Best For: Businesses with digital payments, consistent revenue streams, and those needing quick access to working capital
4. NCBA Bank—Business Loans
NCBA Bank offers flexible business lending for small enterprises, including digital personal loans accessible via the NCBA NOW App with limits between KES 1,000 and KES 1 million.
Loan Details:
- Amount: KES 100,000 – KES 8,000,000 (personal/business)
- Digital Loan: KES 1,000 – KES 1,000,000 (via app)
- Interest Rate: 13% per annum (secured business loans)
- Repayment Period: 3-12 months (digital), up to 60 months (business loans)
- Collateral: None for digital loans; flexible security for larger amounts
Requirements: ✔ NCBA account active for a minimum of 6 months
✔ Business operating for 1+ year
✔ Regular income/cash flow
✔ National ID and KRA PIN
✔ Business permits and registration documents
✔ Bank statements
Best For: Traders, professionals, service providers, and businesses needing quick digital access to funds
5. Co-operative Bank—MSME Term Loan
Co-operative Bank offers business loans with asset finance options that don’t require tying up other property or assets as collateral, supporting MSMEs across various sectors.
Loan Details:
- Amount: KES 50,000 – KES 8,000,000
- Interest Rate: Competitive rates based on risk profile
- Repayment Period: Up to 96 months (8 years)
- Collateral: Flexible—the asset being financed can serve as security
Requirements: ✔ Active Co-op Bank business account
✔ Business registration documents
✔ KRA PIN certificate
✔ National ID
✔ Business financial statements
✔ 6 months bank statements
✔ Business plan (for larger amounts)
Best For: MSMEs looking for longer repayment terms and asset financing options
6. Sidian Bank—SME Micro Finance Loan
Sidian Bank provides customized lending facilities for entrepreneurs based on business transactions, targeting microenterprises operating for at least 24 months.
Loan Details:
- Amount: KES 300,000 – KES 3,000,000
- Interest Rate: Risk-based pricing
- Facility Fee: 3% at disbursement
- Repayment Period: Up to 24 months
- Collateral: 10% cash collateral; stock hypothecation supported by insurance
Requirements: ✔ Sidian Bank account (active for 6 months)
✔ Business operating for at least 24 months
✔ Clean repayment history on previous loans
✔ Operational Till or Paybill number
✔ 12 months bank statements
✔ National ID and business permits
Best For: Established microenterprises with regular supplier and customer transactions
7. Family Bank—Vijana Boost Initiative
Family Bank targets youth entrepreneurs (18-35 years) through their Vijana Business Loan, providing unsecured lending with business training and advisory services.
Loan Details:
- Amount: Up to KES 500,000
- Interest Rate: Competitive youth-focused rates
- Repayment Period: Flexible terms
- Collateral: None or minimal security required
Requirements: ✔ Age 18-35 years
✔ Active Family Bank account
✔ Business registration/permit
✔ National ID and KRA PIN
✔ Business plan or proposal
✔ Proof of business operation (receipts, invoices, etc.)
Best For: Young entrepreneurs starting out with limited resources, first-time business owners
Frequently Asked Questions (FAQ)
1. Do I really not need collateral for these loans?
Yes, these banks offer unsecured business loans based on your cash flow, business performance, and banking history—not property or assets.
2. Are interest rates higher without collateral?
Generally, yes. Interest rates on unsecured loans typically range from 12% to over 20% per annum because lenders assume more risk without collateral. However, rates vary by bank and your business profile.
3. What if I have a bad CRB credit score?
Some microfinance institutions and SACCOs are more flexible with credit history, but clearing your CRB is advisable before applying to improve approval chances.
4. How long does loan approval take?
Processing time varies by bank. Absa’s Wezesha Express approves loans within 48 hours, while NCBA’s digital loans can be approved within hours. Traditional applications may take 1-2 weeks.
5. Can I increase my loan limit over time?
Yes. Consistent on-time repayments improve your credit profile and often qualify you for higher loan amounts with better terms.
Tips for a Successful Loan Application
Improve Your Chances:
- Maintain an active business account for at least 6 months before applying
- Keep clean financial records and bank statements
- Ensure consistent cash flow and business transactions
- Clear any existing CRB issues
- Prepare a simple business plan showing how you’ll use the funds
- Build relationships with your bank’s relationship manager
Responsible Borrowing:
- Borrow only what your business can repay comfortably
- Understand the total cost, including interest and fees
- Create a repayment plan before accepting the loan
- Contact your lender early if you face repayment challenges
- Use funds strictly for business growth, not personal expenses
Final Thoughts
Access to business capital without collateral is now a reality in Kenya. The banks listed above understand that the future of Kenya’s economy depends on empowering SMEs and startups, even those without traditional assets. Whether you need working capital, stock financing, or expansion funds, these banks provide viable options based on your business performance.
However, remember that unsecured loans come with higher interest rates and strict repayment terms. Your business must have a steady cash flow, and you must be disciplined with repayments to avoid penalties and maintain a healthy credit score.
Ready to grow your business? Compare these options, choose the bank that fits your needs, and apply with confidence. Your lack of collateral shouldn’t stop you from building the business of your dreams.
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Customer Support Contacts:
- KCB Bank: 0711 012 000
- Equity Bank: 0763 063 000
- Absa Bank: 0711 056 000
- NCBA Bank: 0711 056 444
- Co-operative Bank: 0711 049 000
- Sidian Bank: 0709 275 000
- Family Bank: 0738 110 110
Always verify current rates and terms directly with the bank before applying. Terms and conditions may change
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