How to Increase Your Branch Loan Limit

As we navigate through our daily lives, we sometimes hit financial potholes. These unexpected circumstances can throw us off balance, necessitating immediate financial aid. Enter Branch International, a renowned Fintech firm that caters to customers in Kenya, Nigeria, Tanzania, and India by offering instant mobile loans via an app. But what's the buzz all about? This comprehensive guide delves into the Branch loan limit, showing you all there is to know about it.

The Concept of Branch Loan Limit

Like traditional banks and SACCOs, the Branch loan limit signifies the minimum and maximum amount of money a customer can borrow from the Branch loan app. Currently, it ranges between Ksh. 250 and Ksh. 100,000. However, your borrowing habits, and credit score, among other factors, largely dictate the maximum or minimum amount you can secure from this app.

Understanding Your Branch Loan Limit 

So how does one know their loan limit on the Branch loan app? This is the amount you can borrow from the app, depending on your credit score, loan repayment history, and other borrowing habits.

Here's how you can find your loan limit on the Branch app:

• Open the Branch loan app.
• Tap on "Loan Limit."
• A screen displaying your current loan limit and other account-related information will appear.

How Do You Qualify for a Branch Loan?

The Branch loan app determines your loan qualification and limits through sophisticated algorithms and an evaluation of various factors. These factors include:

1. Your CRB Status

The branch uses your credit score to assess the risk of lending you money. A good credit score indicates that you are a responsible borrower, more likely to repay your loan on time, thus increasing your chances of receiving a higher loan limit.

2. Your Monthly Income

The loan app considers your monthly income when determining your loan limit. Higher income denotes a better capacity to repay the loan on time, which can lead to a higher loan limit.

3. Your Repayment History

The branch takes into account your repayment history. Regular, on-time payments reflect well on your capacity to repay, which is a positive signal for the lender when considering your application.

4. Your Current Location 

The Branch app considers your current location to ensure they're lending to people physically close to one of their branches, facilitating better customer service and support.

5. Mpesa Transactions Messages

The app collects your Mpesa transaction data to determine your loan limit. Everyday transactions can portray you as a low-risk borrower.

6. The Type of Phone You're Using

The app also considers the type of phone you're using. A modern smartphone compatible with their app could positively influence your loan limit.

7. The Information Provided During Sign-Up

The details you provide during sign-up help the Branch app to determine your loan limit. Hence, accurate and current information is critical.

How to Increase Your Branch Loan Limit

Want a higher loan limit? Here are a few simple steps to help you achieve that:

• Maintain a good CRB credit score.
• Make regular payments on your existing loans.
• Increase your income, as this can raise your loan limit.
• Use a modern smartphone that's compatible with the Branch app.
• Provide accurate and up-to-date information during sign-up and update it as necessary.
• Engage in regular transactions via Mpesa.
• Stay close to a physical Branch location if possible.

READ ALSO: Branch Loan App Download and How To Apply For A Mobile Loan In 2023

Final Thoughts

Understanding your Branch loan limit and working towards improving it can be immensely beneficial, particularly during those unforeseen financial emergencies. By keeping a good credit score, maintaining a consistent repayment history, and managing your income wisely, you can enhance your chances of increasing your loan limit on the Branch app.

While there are different ways to improve your loan limit, it's important to remember that taking out loans should always be done responsibly. Remember the potential risks and consequences of borrowing, including the need to pay back with interest and the implications on your credit score should you fail to repay.

Through its app, Branch International provides a convenient way to access funds when you need them the most. With the knowledge of how the loan limit works and how to increase it, you can make the most of this innovative financial tool.

Disclaimer!!!

This guide is intended to provide general information and does not constitute financial advice. Always research and consult with a financial advisor before taking out loans.