Looking for LogBook Loan in Kenya?

Logbook Loan in Kenya: A Quick Rundown

A logbook loan is a secured loan option in Kenya that uses your car’s value as security. Here’s a breakdown of how it works:

  • Secured by your car: The lender holds a lien on your car’s logbook (ownership document). This means partial ownership is transferred to the lender until the loan is repaid.
  • Keep driving your car: Unlike traditional car loans, you get to keep and use your car throughout the loan period.
  • Faster access to cash: Logbook loans are often processed quicker than unsecured loans due to the collateral involved.

Here’s the general process:

  1. Apply: You approach a bank or licensed lender with your car details and loan request.
  2. Valuation: The lender inspects and values your car to determine the maximum loan amount (usually up to 75% of the car’s value).
  3. Approval: After considering your creditworthiness and car value, the lender approves or rejects your application.
  4. Lien on Logbook: If approved, the National Transport and Safety Authority (NTSA) reflects the lender’s interest in your car’s logbook.
  5. Receive funds: You receive the loan amount.
  6. Repayment: You make monthly installments to repay the loan with interest.
  7. Clearance of Lien: Once you fully repay the loan, the lender releases the lien on your car’s logbook.


  • Logbook loans can have higher interest rates compared to unsecured loans.
  • Carefully compare interest rates and terms from different lenders before applying.
  • Failing to repay the loan could lead to your car being repossessed by the lender.

Thinking about a logbook loan? Do your research, understand the risks and benefits, and ensure you can comfortably manage the repayments before taking the plunge.

Logbook Loans in Kenya

Why Bashy Africa Credit is Ranked the Best In LogBook Loan in Kenya

  1. Competitive Interest Rates: Bashy Africa Credit offers competitive interest rates compared to other lenders in the market, making their loans more attractive to borrowers.
  2. Flexible Loan Terms: The company provides flexible loan terms, such as longer repayment periods or customizable repayment schedules, catering to the diverse needs of borrowers.
  3. High Approval Rates: Bashy Africa Credit has higher approval rates for logbook loans, making it easier for borrowers to qualify for financing, even with less-than-perfect credit histories.
  4. Excellent Customer Service: Positive customer experiences, efficient loan processing, and responsive customer support can contribute to the company’s reputation as one of the best logbook loan providers.
  5. Transparent and Fair Practices: Bashy Africa Credit adheres to transparent and fair lending practices, ensuring that borrowers fully understand the terms and conditions of their loans and are treated ethically throughout the borrowing process.
  6. Positive Reviews and Reputation: Favorable reviews from satisfied customers and a strong reputation within the financial services industry can enhance Bashy Africa Credit’s standing as a top provider of logbook loans in Kenya.
  7. Additional Benefits or Services: The company offers additional perks or services, such as online account management platforms, educational resources on financial literacy, or loyalty programs, adding value for borrowers.

It’s essential for individuals considering a logbook loan to conduct thorough research, compare multiple lenders, and carefully review the terms and conditions before making a decision. Additionally, regulatory compliance and consumer protection measures should also be considered when evaluating lenders in Kenya’s logbook loan market.

Eligibility Criteria: Requirements for borrowers to qualify for logbook loan in Kenya, including age, residency, and vehicle ownership.

The eligibility criteria for borrowers to qualify for logbook loans in Kenya typically include:

  1. Age: Borrowers must be of legal age, which is usually 18 years or older, to qualify for a logbook loan. Some lenders may have specific age requirements, such as being at least 21 years old.
  2. Residency: Borrowers are generally required to be residents of Kenya to qualify for a logbook loan from lenders operating in the country. They may need to provide proof of residency, such as a utility bill or rental agreement.
  3. Vehicle Ownership: Borrowers must own the vehicle they intend to use as collateral for the logbook loan. The vehicle should be registered in the borrower’s name, and they should possess the logbook (ownership documents) for the vehicle.
  4. Vehicle Age and Condition: Lenders may have restrictions on the age and condition of the vehicle being used as collateral. Typically, the vehicle should be relatively new and in good working condition. Some lenders may have specific criteria regarding the make, model, and mileage of the vehicle.
  5. Income and Affordability: Borrowers may need to demonstrate their ability to repay the loan by providing proof of income, such as pay stubs, bank statements, or business income records. Lenders will assess the borrower’s income and expenses to ensure they can afford the loan payments.
  6. Credit History: While logbook loans are secured by collateral, some lenders may still consider the borrower’s credit history as part of the eligibility criteria. However, borrowers with poor credit may still qualify for a logbook loan, as the vehicle serves as security for the loan.
  7. Valid Identification: Borrowers are typically required to provide valid identification, such as a national ID card, passport, or driver’s license, to verify their identity and confirm their eligibility for the loan.

It’s essential for borrowers to review the specific eligibility criteria of the lender they’re considering, as requirements may vary depending on the lender’s policies and the terms of the loan. Meeting these criteria is crucial to qualify for a logbook loan and access the financing needed while using their vehicle as collateral.

Documentation Needed: List of documents required to apply for a logbook loan in Kenya

To apply for a logbook loan in Kenya, you’ll typically need the following documents:

Mandatory Documents:

  • National ID / Passport & Alien ID (if applicable): Proof of your identity and Kenyan citizenship/residency.
  • KRA PIN certificate: This verifies your registration with the Kenya Revenue Authority.
  • Duly completed application form: Provided by the lender, this outlines your loan request and other personal details.
  • Original Logbook of the vehicle: This confirms ownership of the car you’re offering as collateral.

Additional Documents (may vary depending on lender):

  • 6 months bank statements (electronic): Demonstrates your financial history and income stability.
  • 6 months M-Pesa statements (electronic): For some lenders, this serves as additional proof of income or financial activity.
  • Picture of your current insurance sticker: Verifies that your car has valid comprehensive insurance coverage.
  • Proof of income: This could be payslips, business registration documents, or other documents depending on your employment status.

Optional Documents:

  • Vehicle valuation report (if not offered by the lender): This can expedite the loan application process, although some lenders may require their own valuation.
  • Guarantor documents (if required by the lender): In some cases, the lender may ask for a guarantor to co-sign the loan agreement, especially if your credit score is low.

Remember: Always check with the specific lender you’re applying with for their exact list of required documentation. This ensures you have everything they need to process your application efficiently.

Bashy Africa Credit Rates for LogBook Loan in Kenya

Bashy African Credit offers logbook loans in Kenya with an interest rate as low as 2.5% per week. However, it’s essential to approach this information with caution and conduct further research to understand the full picture:

  • Annual Percentage Rate (APR): While they advertise a weekly rate, it’s crucial to convert it to an Annual Percentage Rate (APR) for a more comprehensive comparison with other lenders. Weekly rates can be misleading as they don’t reflect the interest charged over a whole year.
  • Total Loan Cost: Look beyond the base interest rate and consider the total cost of the loan, which includes origination fees, processing fees, late payment penalties, and any other applicable charges.
  • Varying Rates: Remember, the advertised rate of 2.5% might be the best-case scenario and may not apply to all borrowers. Your actual rate could be higher depending on your individual circumstances, creditworthiness, loan amount, and vehicle value.


  • Contact Bashy African Credit directly to inquire about their APR range and the specific terms and conditions that would apply to your loan scenario.
  • Compare rates from multiple lenders before making a decision. Don’t solely rely on the information provided by a single lender.
  • Use online comparison tools or consult with a financial advisor to get a broader perspective on the loan options available and their true costs.

Bashy Africa Credit Loan Amount for LogBook Loan in Kenya

The specific loan amounts offered by Bashy Africa Credit for logbook loans in Kenya may vary depending on various factors, including the value of the vehicle being used as collateral, the borrower’s income, credit history, and the lender’s policies. However, Bashy Africa Credit is known to offer logbook loans ranging from Ksh 50,000 to Ksh 2,000,000 or more, depending on the borrower’s circumstances.

To get precise information about the loan amounts available for logbook loans from Bashy Africa Credit, it’s recommended to directly contact the company or visit their official website for the most up-to-date and accurate details regarding their loan products and eligibility criteria. Additionally, borrowers should carefully review the terms and conditions, including interest rates, repayment periods, and any associated fees, before applying for a logbook loan with any lender in Kenya.

Repayment Terms: Overview of repayment schedules, including instalment amounts and frequency, for logbook loans in Kenya.

Bashy African Credit offers logbook loans in Kenya with a maximum repayment period of up to 12 months. This information is clearly stated on their website under the “Our Products” section for Logbook Loans: “https://bashyafricancredit.co.ke/“.

However, it’s crucial to remember that this might not be the only option available. Some lenders offering logbook loans in Kenya might provide more extended repayment periods, potentially stretching up to 36 months.

Therefore, it’s essential to consider the following when looking at repayment options:

  • Compare repayment terms: Don’t just focus on the interest rate. Consider the total loan cost, including origination fees, processing fees, and any other applicable charges, over the entire repayment period.
  • Choose a term you can afford: Opt for a repayment period that allows you to comfortably manage your monthly installments. Stretching the loan over a longer period might lead to lower monthly payments, but it could also mean paying more interest in the long run.
  • Discuss your options: Talk directly with Bashy African Credit or any other lenders you’re considering to understand their full range of repayment terms and find the option that best suits your financial situation and needs.

Risks and Considerations: Discussion of the risks associated with logbook loan in Kenya, such as repossession of the vehicle in case of default.

While logbook loans can provide quick access to cash for borrowers in Kenya, there are several risks and considerations associated with this type of financing. Some of the key risks include:

  1. Vehicle Repossession: One of the most significant risks of taking out a logbook loan is the possibility of vehicle repossession in case of default. If the borrower fails to make timely payments according to the loan agreement, the lender has the legal right to seize the vehicle used as collateral to recover the outstanding debt. This can result in the borrower losing their primary mode of transportation, which can have significant implications for their daily life and livelihood.
  2. High Interest Rates: Logbook loans often come with relatively high-interest rates compared to other forms of financing. Borrowers may end up paying a substantial amount in interest over the life of the loan, increasing the overall cost of borrowing significantly.
  3. Short Repayment Periods: Some logbook loans in Kenya may have short repayment periods, which can result in higher monthly payments and financial strain for borrowers. Short repayment periods may also increase the risk of default if the borrower is unable to meet the repayment obligations within the specified timeframe.
  4. Additional Fees and Charges: Borrowers should carefully review the terms and conditions of the loan agreement to understand any additional fees and charges associated with the logbook loan. These may include processing fees, late payment fees, early repayment penalties, and other administrative costs, which can add to the overall expense of the loan.
  5. Impact on Credit Score: Defaulting on a logbook loan can have a negative impact on the borrower’s credit score and financial reputation. A history of missed or late payments can make it more challenging to access credit in the future and may affect the borrower’s ability to borrow money or obtain favorable terms on future loans.
  6. Debt Trap: If borrowers are unable to manage their finances effectively or experience unexpected financial setbacks, they may fall into a cycle of debt, where they continuously borrow to meet their financial obligations. This can lead to a worsening financial situation and long-term financial instability.

Before taking out a logbook loan in Kenya, borrowers should carefully assess their financial situation, consider alternative financing options, and fully understand the risks and implications of this type of borrowing. It’s essential to borrow responsibly and only take out a loan that can be comfortably repaid within the agreed-upon terms to avoid potential consequences such as vehicle repossession and financial hardship. Additionally, seeking financial advice from a qualified professional can help borrowers make informed decisions and mitigate the risks associated with logbook loans.

Legal Regulations: Overview of the legal framework governing logbook loan in Kenya, including consumer protection laws and regulations.

As of my last update in January 2022, logbook loan in Kenya are regulated by various laws and regulations aimed at protecting consumers and ensuring fair lending practices. Here’s an overview of the legal framework governing logbook loans in Kenya:

  1. The Banking Act (Cap 488): The Banking Act regulates the operations of financial institutions in Kenya, including banks and non-bank lenders offering logbook loans. It sets out requirements for licensing, prudential regulation, and consumer protection.
  2. The Microfinance Act (2006): The Microfinance Act regulates the activities of microfinance institutions (MFIs) in Kenya. MFIs may offer logbook loans to borrowers, and the Act sets out requirements for licensing, governance, and consumer protection.
  3. Consumer Protection Act (2012): The Consumer Protection Act provides a framework for safeguarding the interests of consumers in Kenya. It prohibits unfair and deceptive practices by lenders and requires clear and transparent disclosure of loan terms and conditions, including interest rates, fees, and charges.
  4. The Credit Reference Bureau Regulations (2013): These regulations govern the operations of credit reference bureaus (CRBs) in Kenya, which collect and maintain credit information on individuals and businesses. Lenders offering logbook loans are required to conduct credit checks through CRBs to assess borrowers’ creditworthiness and mitigate risk.
  5. The Interest Rates Act (2016): The Interest Rates Act regulates the pricing of credit in Kenya by capping interest rates that lenders can charge on loans. While logbook loans are typically secured loans, and interest rates may be lower compared to unsecured loans, lenders are still subject to the interest rate caps set by this Act.
  6. The Insolvency Act (2015): The Insolvency Act governs the procedures for bankruptcy and insolvency in Kenya. It provides mechanisms for debt restructuring and repayment arrangements in cases where borrowers are unable to meet their financial obligations, including logbook loans.
  7. The Data Protection Act (2019): The Data Protection Act regulates the processing of personal data in Kenya, including data collected by lenders for the purpose of assessing loan applications and managing customer accounts. It requires lenders to protect borrowers’ personal information and obtain consent for the use of their data.

These are some of the key laws and regulations that govern logbook loans in Kenya and provide consumer protection measures. Borrowers should familiarize themselves with these legal frameworks and seek advice from legal or financial professionals if needed before entering into any loan agreements. Additionally, borrowers should carefully review loan terms and conditions, including interest rates, fees, and repayment obligations, to ensure they fully understand their rights and responsibilities as consumers.

Benefits of Logbook Loan in Kenya: Discussion of the potential benefits of logbook loans for borrowers in Kenya, such as quick access to cash and flexibility in repayment.

Logbook loans can offer several potential benefits for borrowers in Kenya, including:

  1. Quick Access to Cash: Logbook loans provide borrowers with a quick and convenient way to access cash by using their vehicle as collateral. Unlike traditional bank loans, which may involve lengthy application processes and approval times, logbook loans typically have a simpler and faster application process, allowing borrowers to receive funds quickly when needed.
  2. No Credit Check Required: Since logbook loans are secured by the borrower’s vehicle, lenders may be more lenient in their credit assessment criteria. This means that borrowers with less-than-perfect credit histories may still qualify for a logbook loan, making it an accessible financing option for individuals who may have difficulty obtaining loans from traditional lenders.
  3. Flexible Repayment Options: Many logbook loan lenders in Kenya offer flexible repayment options to accommodate borrowers’ financial situations. Borrowers may be able to choose from various repayment terms and schedules, such as monthly or bi-weekly payments, allowing them to tailor the loan to their budget and cash flow needs.
  4. Use of Vehicle During Loan Term: While the vehicle serves as collateral for the loan, borrowers typically retain possession and use of their vehicle throughout the loan term. This means that borrowers can continue to drive their vehicle as usual for personal or business purposes while repaying the loan, providing them with continued access to transportation.
  5. Higher Loan Amounts: Logbook loans may allow borrowers to access higher loan amounts compared to other types of consumer loans, especially if the value of the vehicle being used as collateral is substantial. This can be beneficial for borrowers who need a larger sum of money for expenses such as home renovations, medical bills, or debt consolidation.
  6. Minimal Documentation Required: Compared to traditional bank loans, logbook loans often require minimal documentation for approval. Typically, borrowers need to provide basic documents such as proof of identity, vehicle ownership documents (logbook), and proof of income. This streamlined application process can save time and hassle for borrowers.
  7. Lower Interest Rates Compared to Unsecured Loans: Logbook loans are secured loans, meaning they are backed by collateral (the borrower’s vehicle). As a result, lenders may offer lower interest rates on logbook loans compared to unsecured loans, which can translate to lower overall borrowing costs for borrowers.

Overall, logbook loans can be a convenient and accessible financing option for borrowers in Kenya who need quick access to cash and have a vehicle to use as collateral. However, it’s essential for borrowers to carefully consider the terms and conditions of the loan, including interest rates, fees, and repayment obligations, to ensure they can comfortably afford the loan and avoid potential risks such as vehicle repossession in case of default.

How to Apply: Step-by-step guide on how to apply for a logbook loan in Kenya, including tips for preparing your documents and meeting eligibility criteria.

Applying for a Logbook Loan in Kenya: A Step-by-Step Guide

Here’s a breakdown of the steps involved in applying for a logbook loan in Kenya, along with some tips for preparation:

Before You Begin:

  1. Research and Compare: Explore different lenders and compare their interest rates, loan amounts, repayment terms, and any additional fees. Don’t just go for the first option you find.
  2. Check Eligibility: Ensure you meet the basic eligibility criteria, such as age, residency, minimum income, and vehicle ownership requirements. Refer to the information provided earlier for details.
  3. Gather Documents: Start collecting the necessary documents well in advance. Prepare copies and originals as needed, depending on the lender’s requirements.

The Application Process:

  1. Choose Your Lender: Based on your research and comparison, select a lender that offers the most competitive terms and a comfortable repayment plan.
  2. Initiate the Application: Most lenders allow online applications through their website or mobile app. Alternatively, you can visit their physical branches to start the process.
  3. Fill Out the Application Form: Provide accurate and complete information about yourself, your car, and the loan amount you’re requesting. Double-check for any errors before submitting.
  4. Submit Required Documents: Attach copies (and originals if requested) of all the necessary documents listed earlier, such as your ID, KRA PIN, logbook, income proof, and insurance certificate.
  5. Valuation and Approval: The lender will typically conduct a valuation of your car to determine the loanable amount and assess your creditworthiness. Based on these factors, they will decide to approve or reject your application.
  6. Loan Agreement and Disbursement: If approved, you’ll receive a loan agreement outlining the terms and conditions. Read it carefully and ask questions if anything is unclear. Once you sign the agreement, the lender will disburse the loan amount as agreed upon.

Tips for a Smooth Application Process:

  • Maintain a good credit score: This significantly improves your chances of approval and can lead to better loan terms.
  • Prepare your car for valuation: Ensure your car is clean and in good condition to maximize its appraised value and potentially qualify for a higher loan amount.
  • Negotiate terms: While interest rates might be advertised, there might be some room for negotiation, especially on processing fees or other charges.
  • Don’t overborrow: Only borrow what you can comfortably repay within the chosen term.
  • Read the fine print: Before signing any loan agreements, thoroughly understand all the terms and conditions, including any hidden fees or penalties.

Remember, this is a general guide, and the specific process might vary slightly depending on the chosen lender. Don’t hesitate to ask questions or seek clarification throughout the process for a smooth and informed experience.

Frequently Asked Questions about LogBook Loan in Kenya

Here are some frequently asked questions (FAQs) about logbook loans in Kenya:

  1. What is a logbook loan?
    • A logbook loan is a type of secured loan where the borrower uses their vehicle’s logbook (ownership documents) as collateral to secure the loan. The lender holds onto the logbook until the loan is repaid in full.
  2. How do logbook loans work?
    • To obtain a logbook loan, the borrower typically submits their vehicle’s logbook to the lender along with other required documentation. The lender assesses the vehicle’s value and offers a loan amount based on a percentage of that value. The borrower then repays the loan amount plus interest over an agreed-upon period, usually through monthly installments.
  3. What are the eligibility criteria for a logbook loan in Kenya?
    • Eligibility criteria for logbook loans in Kenya typically include being of legal age, a resident of Kenya, owning the vehicle outright, having a steady income, and providing valid identification.
  4. How much can I borrow with a logbook loan?
    • The loan amount you can borrow with a logbook loan in Kenya depends on factors such as the value of your vehicle, your income, and the lender’s policies. Loan amounts can range from a few thousand Kenyan shillings to several million, depending on these factors.
  5. What is the repayment period for a logbook loan?
    • Repayment periods for logbook loans in Kenya can vary depending on the lender and the terms of the loan agreement. Typically, repayment periods range from a few months to several years, with borrowers making regular monthly payments until the loan is fully repaid.
  6. Are there any risks associated with logbook loans?
    • Yes, there are risks associated with logbook loans, including the risk of vehicle repossession if you fail to repay the loan as agreed. Additionally, logbook loans may have high-interest rates and fees, which can increase the overall cost of borrowing.
  7. Can I still use my vehicle while it’s used as collateral for a logbook loan?
    • Yes, in most cases, you can continue to use your vehicle as usual while it’s used as collateral for a logbook loan. However, if you default on the loan, the lender may repossess your vehicle.
  8. Can I repay a logbook loan early?
    • Yes, many lenders allow borrowers to repay logbook loans early without incurring additional fees or penalties. However, it’s essential to check the terms of the loan agreement to confirm if early repayment is allowed and if any fees apply.
  9. How do I apply for a logbook loan?
    • To apply for a logbook loan in Kenya, you typically need to contact a lender that offers this type of financing and submit the required documentation, including your vehicle’s logbook and proof of income. The lender will then assess your application and determine the loan amount and terms.
  10. What happens if I default on a logbook loan?
    • If you default on a logbook loan by failing to make payments as agreed, the lender has the right to repossess your vehicle to recover the outstanding debt. Additionally, defaulting on a loan can negatively impact your credit score and financial standing.

These FAQs provide essential information about logbook loans in Kenya, helping borrowers understand how they work and what to expect when considering this type of financing.