When it comes to short-term financing options, the Absa Classic Credit Card and Timiza Digital Loan are two popular choices offered by Absa Bank Kenya.
Both options can be useful for those facing financial emergencies or cash shortages. However, understanding when to use each option is essential to make the most of them.
The Absa Classic Credit Card is a credit facility that allows you to make purchases and pay later. With this card, you can convert purchases into easy installment plans of up to 12 months at reduced interest rates.
There is no annual fee for life, making it an attractive option for those who want to enjoy the benefits of credit without incurring additional costs.
On the other hand, Timiza Digital Loan is a mobile banking solution that allows you to access instant loans, pay bills, purchase airtime, and get insurance, all from your phone.
The loan tenure is a maximum of 30 days, and it is accessible via USSD *848# or the Timiza app. With Timiza, you can access the highest loan limits and lowest interest rates among digital loans in Kenya.
Key Takeaways
- Absa Classic Credit Card and Timiza Digital Loan are two popular short-term financing options offered by Absa Bank Kenya.
- The Absa Classic Credit Card allows you to make purchases and pay later, while Timiza Digital Loan is a mobile banking solution that offers instant loans, bill payments, and insurance.
- Understanding the features and benefits of each option can help you make the most of them and avoid unnecessary costs.
Overview of Absa Bank Kenya Classic Credit Card
Features
The Absa Bank Kenya Classic Credit Card is a credit card that offers a range of features to help you manage your finances. Some of the key features of this credit card include:
- No annual fee for life
- Discounts from over 100 local merchants on dining, travel, electronics, and more
- Access to your credit limit in cash from ATMs or through your mobile wallet
- Up to 50 days’ interest-free period on purchases
- Flexible repayment options from 5% to 100% of your monthly bill
Benefits
The Absa Bank Kenya Classic Credit Card offers a range of benefits to help you make the most of your finances. Some of the key benefits of this credit card include:
- Cashback rewards every time you shop
- Access to credit whenever you need it
- 24/7 transaction monitoring through SMS alerts and customer call backs to minimize the risk of fraud
- Free eStatements
- Up to 8 supplementary cards
Eligibility Criteria
To be eligible for the Absa Bank Kenya Classic Credit Card, you must meet the following criteria:
- Be a Kenyan citizen or resident
- Be at least 18 years old
- Have a minimum monthly income of KES 25,000
Interest Rates
The interest rate for the Absa Bank Kenya Classic Credit Card is determined based on your creditworthiness and other factors.
It is important to note that interest rates can vary over time and may change based on market conditions.
Overview of Timiza Digital Loan
If you are looking for a quick and easy way to get a loan, the Timiza Digital Loan from Absa Bank Kenya might be the solution for you.
This loan is designed to be accessible to everyone, without the need for a bank account. In this section, we will go over the features, benefits, eligibility criteria, and interest rates of the Timiza Digital Loan.
Features
The Timiza Digital Loan offers a range of features to make borrowing money as simple as possible. Here are some of the key features:
- Instant loan approval: You can apply for a loan through the Timiza app or by dialing *848# and get an instant decision.
- Flexible repayment options: You can choose to repay your loan in full or in installments, depending on your financial situation.
- No collateral required: You don’t need to provide any collateral to get a Timiza Digital Loan.
- Low interest rates: The interest rates on Timiza loans are among the lowest in Kenya, making it an affordable option for many borrowers.
Benefits
There are several benefits to getting a Timiza Digital Loan. Here are a few:
- Easy access to credit: You can apply for a loan from anywhere using your mobile phone.
- No bank account required: You don’t need to have a bank account to get a Timiza loan.
- Low fees: The fees for borrowing through Timiza are among the lowest in Kenya.
- Quick disbursement: Once your loan is approved, the funds will be disbursed to your mobile wallet within minutes.
Eligibility Criteria
To be eligible for a Timiza Digital Loan, you must meet the following criteria:
- Be a Kenyan citizen or resident
- Be over 18 years old
- Have a valid national ID or passport
- Have a mobile phone
Interest Rates
The interest rates on Timiza Digital Loans are some of the lowest in Kenya. Here are the current rates:
| Loan Amount | Interest Rate |
|---|---|
| Ksh 50 – Ksh 5,000 | 1.083% per month |
| Ksh 5,001 – Ksh 10,000 | 0.875% per month |
| Ksh 10,001 – Ksh 20,000 | 0.75% per month |
| Ksh 20,001 – Ksh 50,000 | 0.583% per month |
| Ksh 50,001 – Ksh 150,000 | 0.5% per month |
Note that these rates are subject to change and may vary depending on your creditworthiness.
Comparative Analysis
Ease of Access
Absa Classic Credit Card and Timiza Digital Loan are both easily accessible to eligible individuals.
The Timiza Digital Loan can be accessed by anyone who meets the eligibility criteria, regardless of whether or not they have an Absa Bank Account.
On the other hand, the Absa Classic Credit Card requires you to have an account with Absa Bank to be eligible for the card.
Interest Rates Comparison
The interest rates on the Absa Classic Credit Card and Timiza Digital Loan are different.
The Absa Classic Credit Card offers reduced interest rates for purchases made using the card and converted to an easy installment plan of up to 12 months.
However, the Timiza Digital Loan offers the lowest interest rates among digital loans, making it an attractive option for those looking for affordable financing.
Loan Repayment Terms
The repayment terms for the Absa Classic Credit Card and Timiza Digital Loan are also different.
The Absa Classic Credit Card allows you to make purchases using the card and convert them to an easy installment plan of up to 12 months at reduced interest rates.
The Timiza Digital Loan, on the other hand, allows you to access mobile loans of up to Ksh150,000 with a minimum loan amount of Shs 50 and a maximum of Sh1 million, depending on your credit rating.
The funds are immediately sent to your Timiza wallet, and you can repay the loan within 30 days.
Customer Support
Both Absa Bank and Timiza offer excellent customer support services to their clients.
Absa Bank has a dedicated customer support team that is available 24/7 to assist clients with any inquiries or issues they may have.
Timiza, on the other hand, has a customer support team that is available from 7 am to 9 pm daily to assist clients with any inquiries or issues they may have.
Final Thoughts
Choosing between the Absa Classic Credit Card and Timiza Digital Loan depends on your financial needs and preferences. Here are some key takeaways to help you make an informed decision.
Absa Classic Credit Card
The Absa Classic Credit Card is a good option if you want a short-term financing option that comes with exclusive discounts.
With this card, you can get up to 20% exclusive discounts at more than 100 merchant outlets in different categories locally. You can also enjoy up to 50 days interest-free credit on purchases.
To apply for the card, you need to provide the latest two months’ pay slip, bank statements for the latest three months, and one passport photo. You can fill out the form on the Absa website to get started.
Timiza Digital Loan
The Timiza Digital Loan is a fully-fledged virtual banking platform that offers various services such as 30-day micro loans, insurance, and savings.
You can get an instant loan, send money, pay your bills, purchase airtime, and get insurance when you do your banking on your phone with Timiza. You can also save and earn returns with the Timiza Savings Account.
To use Timiza, you can dial *848# or download the Timiza app on your phone. You will need to have an active Safaricom line and a registered M-PESA account.
Frequently Asked Questions
What are the benefits of Absa Bank Kenya’s Classic Credit Card?
Absa Bank Kenya’s Classic Credit Card allows you to make purchases using credit and convert them into easy installment plans of up to 12 months at reduced interest rates.
You also pay no annual fee for life. Additionally, you get to travel in style while enjoying cashback benefits and other rewards.
What are the requirements for getting a Timiza Digital Loan?
To get a Timiza Digital Loan, you need to be a registered Timiza customer. You can register by dialing *848# or downloading the Timiza app on your phone.
After registration, you need to provide your personal details, including your name, identification documents, and proof of income.
Is it possible to use Absa Bank Kenya’s Classic Credit Card to withdraw cash?
Yes, it is possible to use Absa Bank Kenya’s Classic Credit Card to withdraw cash. However, cash withdrawals attract a fee of 5% of the amount withdrawn or KES 300, whichever is higher.
What are the interest rates for Absa Bank Kenya’s Classic Credit Card?
The interest rates for Absa Bank Kenya’s Classic Credit Card vary depending on the credit limit and repayment period. The interest rates range from 3.5% to 5% per month.
What are the charges associated with Absa Bank Kenya’s Classic Credit Card?
Absa Bank Kenya’s Classic Credit Card charges include an annual fee of KES 0, cash withdrawal fee of 5% of the amount withdrawn or KES 300, whichever is higher, and a late payment fee of 5% of the amount due or KES 2,500, whichever is higher.
How long does it take for Timiza to approve a digital loan application?
Timiza typically approves digital loan applications within 24 hours of application. However, the approval time may vary depending on the completeness of the application and the verification process.
