SBM Bank Kenya is a leading and trusted financial institution with an international footprint, headquartered in Mauritius and positioned to offer an unprecedented banking experience in Kenya to retail, SME and corporate clients. Following approval by the Central Bank of Kenya, the bank started its operations in Kenya in May 2017 and currently has a branch network of 41 branches countrywide complemented by ATMs, mobile banking, online banking, extensive agency banking services and an available contact centre to match our client base of over 100,000. Additionally, SBM Bank Kenya operates as an Authorised Depository and as an Authorised Securities Dealer following a license issuance by the Capital Markets Authority.

1. Top 5 Benefits of Personal Loans
Versatile, easy to avail, hassle-free application process - there are numerous
advantages of personal loans. A personal loan is a great way to finance your
emergency requirements. Be it an unplanned medical condition or a big-ticket
purchase, a personal loan can finance all these requirements.
Top Advantages of Personal Loans
Let’s take a look at some of the top benefits of personal loans
1. Quick Approval
By quick, we mean within 24 hours in most cases!
 As compared to 3-4 weeks for home loan processing, a personal loan takes
much less time. As a result, they are the best bet for meeting your urgent cash
or payment needs.
 If your credit history is strong (CIBIL score of more than 750+) then lenders
will not have a problem approving your personal loan application.
2. No Need for a Collateral
Personal loans are unsecured which means that you don’t have to provide collateral to
avail them. This is why it is easier to avail personal loans as compared to other loans
such as home loans, auto loans, etc.
 However, as a customer you must note that unsecured loans are riskier for
lenders, therefore the interest rates are generally on the higher side to mitigate
the risk and are usually 1.33% and above per month.
3. Versatility
Be it for an iPhone purchase, a Swiss holiday or for home refurbishing, a personal
loan will be helpful without being limited by the use case. Additionally, a single loan
can be used for multiple purposes and is not limited such as home loans or auto loans.
 This flexibility is one of the reasons why personal loans are so popular today.
4. Builds Credit Score

2. If you have a low credit score or are new to credit, a great way to build your score is
by availing affordable personal loans and repaying them on time. As you pay your
EMIs on time along with the pre-decided interest rate, your credit score will increase.
However, it is important to avail a loan amount that is within your repayment ability.
If not, missing EMI payments can be detrimental to your credit score.
5. Minimal Documentation and Easy to Avail
One of the biggest advantages of online personal loans is that the documentation
requirements are minimal. Loan providers such as SBM Bank Kenya require just
three documents which can all be submitted online.
Not only this, but the application process is also quite simple keeping in mind
customers’ convenience.
Is There a Tax Benefit on Personal Loan?
Unlike home loans, there is no tax benefit on personal loans generally. However, in
certain cases, exceptions may be made such as if the loan is being used for home
renovation, purchase of assets such as gold or when used for business expansion.
However, each of these use cases are subject to different terms and conditions and
may not be applicable for everyone.
Things to Keep in Mind When Going for a Personal Loan
Now that you know some of the benefits of personal loans, here are a few things that
will help you choose the best possible loan -
 Ensure that the amount being availed is within your repayment ability
 Clarify all the terms and conditions prior to availing the loan
Conclusion
Personal loans are one of the most sought after loans today. We’ve mentioned just
five of the numerous advantages of personal loans but there are plenty more
contributing to their popularity. This is especially true for personal loans from lenders

3. such as SBM Bank Kenya. Not only are the interest rates affordable, the
documentation requirements are minimal. All you need to do is visit the SBM Bank
Kenya website or download the app and apply today.