Co-operative Bank has introduced a new short-term loan that will enable customers to complete transactions when their funds are depleted.
The new loan, dubbed the Kamilisha Transaction, is aimed at ensuring customers are not stuck while offering convenience and flexible terms.
With the Kamilisha Transaction, a customer will get an overdraft of up to Ksh100,000. The limit is calculated based on your banking activity with Co-op Bank.
Co-op Bank reviews a customer’s account transactions, salary deposits, or business turnover to determine the limit for each customer.
“Your limit is refreshed monthly based on your account activity, repayment history, and eligibility criteria. Good transaction patterns and timely repayments can help you qualify for higher limits,” Co-op said.
Co-op Bank’s Kamilisha has emerged as one of the most affordable short-term loan options.
A review of its rates shows that a borrower taking Ksh1,000 will pay total charges of Ksh84.34, covering access fees, taxes, insurance, and daily maintenance charges.
The breakdown includes Ksh20 in access fees, Ksh4 in excise duty, Ksh0.34 in insurance, and a Ksh2 daily charge for 30 days, adding up to Ksh60.
This translates to a monthly credit life insurance premium of 0.034 per cent, a daily maintenance fee of 0.2 per cent on the outstanding balance, and a one-time access fee of 2 per cent on the borrowed amount. The 20 per cent excise tax applies to the access fee.
Kamilisha loans are repayable within 30 days.
Under the terms of the Kamilisha loan, customers are free to make multiple withdrawals within 30 days of first use for salaried customers and 15 days for business customers if utilised within the approved limit.
And what’s more, you can still get a Kamilisha loan even with an existing loan with Co-op Bank.
According to the bank, the funds taken by a customer will be automatically recovered from subsequent inflows into the customer's bank account.
In order to increase one’s limit, the bank advises customers to maintain active account usage and repay their Kamilisha balance on time.
How it Works
According to Co-op Bank, the new loan scheme is designed to integrate seamlessly with regular transactions.
If a customer attempts to make a payment without sufficient funds, they will receive a prompt asking if they would like to complete the transaction using Kamilisha.
The system then displays the required amount to finalise the transaction, along with any applicable fees.
If the customer agrees, the transaction is processed immediately.
A confirmation SMS with the transaction details is then sent to the customer. “There’s no separate application process; it happens seamlessly during your transaction,” the bank said.
How to Opt in
- Log in to the bank's digital banking platform that is accessible via USSD or the bank's mobile banking app
- Select E-loans, then Select Kamilisha
- Select Opt-in
- Read and accept these Terms and Conditions
- Confirm Opt-in