Compare the best options on the market and choose the one which best adapts to your day-to-day needs.
Further Below: Our Guide to Personal Loans in Burundi, everything you need to know.
KCB Bank Burundi
- Attractive loan limits
- Flexible repayment period of up to 48 months
- Friendly interest rates
- Can be secured, unsecured check off loan, or a salary advance
- High loan limits
- Available to both salaried and self-employed individuals
- Quick approval
- Loan offered for various purposes
- No security requirements
- Loan amount based on salary
- Loan repayment period of up to 7 years
- Interest rates of up to 16%
- Loan acquired in a day
- No collateral required
- Top up option allowed
- Life insurance cover
- Allows loan transfers from other banks
- Loan amount of up to 40% of your salary
- Competitive interest rates
- Flexible repayment period
- Fast loan processing time
- Quick approval
- Easy qualifying criteria
- No security required
- Quick turnaround time
Personal loans in Burundi All you Need to Know:
Taking out a loan can sometimes be a hard decision to make. For this reason, FUNDGECKO is here to walk you through that journey. Spend a few minutes reading through our content to get quality advice on the factors you need to consider before settling for a certain loan. We will take you through the factors to consider as well as give you up to date information about the personal loan facilities in Burundi.
The current market for personal loans
On a month-to-month basis, we provide you with updates on the prevailing situations in the personal loans market in Burundi. Take a few minutes to know how the credit market and personal loans in particular have evolved with time as a result of the current market conditions.
- The onset of Covid-19 led to a reduction in the demand for personal loans. This was because, under the situation that was, the ability to purchase some products or services that personal loans were used for such as purchasing a car, had disappeared.
- The Russian invasion of Ukraine threatened supplies since the two countries are huge players in the world’s energy and commodity markets hence pushing prices high which led to inflation.
- The inflation rate in Burundi increased to 22.09% in October from a rate of 20.92% in September 20222. This rate is expected to reach 18.50% by the end of the year 2022.
- The benchmark lending rate in Burundi was recorded at 6.95% in September 2022. This rate is expected to rise to 8% by the end of the year.
How to compare between online loan offers
The number of lenders offering personal loans on the credit market has greatly increased. If you’re not careful, you can end up making the incorrect decision and incur a lot of extra expenses. Therefore, before applying, we advise you to consider the following aspects of each loan:
- The sum borrowed
- The loan’s repayment period
- The amount of interest charged
- Extra fees are associated such as prepayment fees and application fees.
Perform simulations following your project to determine which loan you should choose before making a decision. For the finest outcomes, take into account the aforementioned factors.
How to use FUNDGECKO to get personal loans
Our goal at FUNDGECKO is to provide you with credible, reliable, and up to date information on the various financial products available to you as a credit consumer. We explain the terms and characteristics associated with these financial products. Below are the simple and well outlined steps you need to follow:
- Compare different financial products that may interest you for free.
- Carefully read the terms and conditions of the loan contract.
- If you have any doubts, use the FUNDGECKO forum to clear them out and get clarification. Click on ‘contract’ whereby you will be automatically directed to our website where our specialists as well as other users will assist you throughout the application process. This way, you are going to have a transparent application process and your concerns will be cleared before the application process.
- Please remember to leave a comment, write a review, or narrate your experience in the comment section. This works to help other users who wish to use our services.
Why do you look for personal loans?
Not all debts are bad since some help to build a positive credit history. If you already have good credit, it will be very helpful if you want to buy a car or find a place to live. When handled properly, debt can assist you in acquiring life’s necessities. Personal loans are a type of debt that can be beneficial if you spend the money wisely, for all of these reasons and many more.
How to apply for a personal loan
One of the reasons personal loans are so popular in Burundi is that they are quick and easy to apply for. You may be able to apply online, but some organizations will require a paper application from the borrower at their offices. When applying for personal loans, the following are the most common steps to follow:
- Since Burundi has many lenders of personal loans, working with just one company won’t work. Before selecting a loan option, inquire about the terms and conditions of the loan from at least three different companies.
- Before applying to the lender, whether online or in person, fill out the form with as much accurate and genuine information as possible about yourself and the terms of the personal loan (purpose, amount, and term).
- In the case of the physical application, the notification of pre-approval occurs two days after the application has been submitted online.
- Send the necessary documentation either in person or by uploading it online using one of the many options offered by the organization.
- You will receive pre-contractual information, which you are expected to read through to familiarize yourself with the contract’s terms and conditions, including the amount, term, interest, and commissions, if the entity approves your application.
- If you approve of the offer, you can manually or digitally sign the contract.
- Accept the funds. It will be paid to you immediately or you may have to wait for a maximum of 48 hours, depending on the lender.
Requirements for personal loans in Burundi
To get a loan in Burundi, you need to meet the lender’s loan requirements. These requirements are
- Age- you should have a minimum of 21 years and not exceed the age of 65.
- Employment status- you should be employed by a reputable company or be self employed.
- Have a bank account with the bank you are applying with and have a good record for the last 3 months.
- Credit score- you should have a good credit score to indicate that your risk of default is low.
- You should not have any significant outstanding loan balances as this indicates that you might be unable to finance the current loans and the new ones that you are applying for.
Documentation for applying for a personal loan
- Proof of steady income- salary slips for the last 3 months for employed persons with regular income and salary slips for the last 12 months for applicants with irregular income.
- Proof of identity- provide a National identification card, a passport, or a driving license
- An introduction letter from your employer if you are employed
- Business registration documents if you run a business
- An appointment letter and confirmation letter
- Your employment contract
- Credit bureau report- to get a loan, this report should show that you do not have any outstanding loan balances and your credit score should be good.
Who grants personal loans in Burundi?
The demand for personal loans has increased as personal loans have grown in importance as a credit option. To meet the demand, an increase in supply follows an increase in demand. As a result, numerous lenders of personal loans have recently emerged. Private companies, P2P platforms, credit financial institutions, and banks have penetrated the credit market in Burundi to typically offer personal loans.
Financing through banking institutions
- Streamlined application process
- Longer repayment periods
- Lower interest rates
- Strict repayment terms
- Increased compliances
- Creditworthiness required
Financing through Credit Financial Institutions (CFE)
- Installment payment
- Few commissions
- Simpler compared to the rest
- Slow hiring process
- Strict eligibility requirements
- May affect credit score
Financing from private companies
- Fast application
- Few eligibility requirements
- Accessible to new clients
- Higher interest rates
- Affects credit score
Financing through P2P platforms
- Lower interest rates
- Less paperwork
- Fees associated
- Not allowed in all jurisdictions
- Not accounting benefits
FAQ: Frequently Asked Questions
What is a personal loan?
A personal loan is a type of credit offered by banks and other financial institutions to meet a customer’s personal financing requirements. Customers will receive a loan from a lender for a predetermined amount of time at a certain interest rate. The borrower then makes personal use of the loan amount. The borrower is not responsible to the lender for how the personal loan is used. Also, these types of loans are unsecured, meaning there is no need for any type of collateral needed for them.
Why don’t you give me personal loans?
When a lender denies you a personal loan or offers you less desirable terms, they will inform you of the reason for the same within 30 days. Some of the reasons why your loan might be declined include poor credit score, high debt-to-income ratio, patchy employment history, low levels of income, and missing paperwork and documentation.
What is the INE Form for a loan?
The INE form is a document we receive from the lender that details all of the terms of the loan we are accepting, including, among other things, the interest rates, repayment period, amount, APR, commissions, and potential insurance.
What is the binding offer of personal credit?
If you want to compare other loan offers but don’t want to accept the current offer, you can ask for a binding offer. You have at least 14 calendar days to freely compare the terms and conditions of other loans without losing the current offer after receiving a binding offer from a lender.
Can personal loans be paid in advance?
It is possible to repay a personal loan in advance. The lender may however charge you a fee known as a prepayment penalty for this. This is normally between 2% and 5% of the remaining loan amount. Before you repay your loan in advance, you should notify your bank about your intention to do the same through writing.
What if I take a loan and later regret it?
You might end up regretting taking out a loan for one reason or another. The most common cause of such regret is always whether or not the monthly payments fit your monthly budget comfortably. It is essential to conduct an in-depth analysis of the loan amount, applicable interest rates, repayment terms, and any additional fees associated with the loan, to avoid such regrets. Before agreeing to take out a loan, you must consider all of your other options.
What happens if I don’t pay back a personal loan?
Failure to repay a personal loan could have negative effects on you such as penalties, fees, your account going to collections, lawsuits, against you, and a significant drop in your credit score. Most lenders will allow you a grace period before reporting your late repayment to credit bureaus. After six months, the lender will write off your debt and report it as bad debt in his financial statements.
When to apply for a personal loan?
Apply for a personal loan if you need a quick influx of cash to pay for necessary expenses. Before taking out the loan, ensure you weigh its benefits against the drawbacks. A personal loan is a debt and so you need to be prepared to repay the debt for a few years. If you are unable to reach the monthly budget for the loan’s principal payments plus interest, then you might need to reconsider the amount you want to borrow or the borrowing itself.
When to apply for a fast loan?
As the name suggests, a fast loan is a short-term form of financing that is mostly for a small amount of money and comes with high interest rates and charges. You should apply for a fast loan when you are short of cash and need funds for a specific purpose. If you take out a fast loan, ensure that you pay it back at the agreed interest rate and within the specified period to avoid paying more than the original amount.
Personal loans come in handy whether you want to finance a personal project you have in mind or want to cater to unexpected expenses. Only take a loan if the purpose has been well thought through. Also, take a loan that you can finance. Ensure you read through the terms of the contract before entering into the contract with the lender.
About this page, our methodology
About this page: We are committed to assisting you in finding the most suitable financial solution for all your circumstances. We combine the best information about consumer loans and how to compare your options before choosing one to provide you with the most appealing offer at the moment.
Source: The information herein about personal loans in Burundi and their terms and conditions has been sourced from World Bank statistics, the Central Bank of Burundi, and individual banks’ websites.
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources
About FUNDGECKO: FUNDGECKO is a website that compares online products with its focus being on home economics and personal finance. We provide comprehensive information that will expedite decision making and enable customers to select the best deal, in addition to assisting customers in comparing the available financial products.Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products