Little Pesa: Loan Products, Features, and How to Apply

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Little Pesa is a Kenyan digital lender and non-deposit-taking microfinance institution that provides quick access to credit through its mobile platform. The Little Pesa loan app is licensed by the Central Bank of Kenya, and the company’s Nairobi office is located at Reliable Towers, Mogotio Road, Westlands.

Little Pesa disburses unsecured loans directly to customers via M-Pesa, offering solutions such as payday loans, flexible instalment financing, and product-specific credit.

Loan Products Offered by Little Pesa

Little Pesa loans are structured into three main products. The first is short-term loans, which serve as emergency or payday advances. These are unsecured and repayable over very short tenures, typically 7, 15, 30, or sometimes up to 62 days.

The second option is Flexipay, a monthly instalment loan that allows repayment periods ranging from 3 to 12 months. According to the lender, the Little Pesa loan limit for Flexipay can go up to KSh 300,000, depending on eligibility and repayment history.

The third option is Product Financing, designed for customers purchasing goods through partnered suppliers. With this feature, the customer applies via the app, selects a supplier and product, pays a 10% deposit through an M-Pesa prompt, and the balance is financed in instalments.

Loan Limits and Interest Rates

Eligibility for Little Pesa loans is determined through a Know Your Customer (KYC) process. Salaried individuals are frequently noted as a core segment, although other applicants may also qualify.

Loan limits vary widely: short-term loans typically start from around KSh 5,000 and may reach up to KSh 200,000, while Flexipay and Product Financing may extend between KSh 300,000 and KSh 500,000 depending on the applicant’s net income and credit history.

The Little Pesa interest rate depends on the product and repayment period. Flexipay instalments generally range between 4.5% and 6% per month, while short-term loans can carry higher annualized rates, with figures cited at up to 110% APR for very short tenures.

The lender emphasizes that it does not charge hidden processing fees, although M-Pesa disbursal costs (such as KSh 60 per transaction) apply.

How to Apply for Little Pesa Loans

Download the Little Pesa loan app from the Google Play Store, App Store, or visit littlepesa.com.
Register an account within the app or website.
Complete the KYC process by submitting personal details, identification documents, and bank or pay information.
Wait for the app to review your details and set your Little Pesa loan limit.

Once approved, the user can choose between a short-term loan, Flexipay, or Product Financing. The app displays the repayment schedule, interest, and instalments before confirmation.

Disbursement is typically made directly to the borrower’s M-Pesa number. Repayments are then completed through M-Pesa Lipa-na-M-Pesa or via the in-app repayment feature.

Repayments, Top-Ups, and Customer Rewards

Little Pesa repayment terms depend on the selected product. For Product Financing, the 10% down payment is required upfront, with the balance covered in instalments. Little Pesa also allows loan top-ups within approved limits, with some listings noting up to three top-ups.

To encourage repayment discipline, the lender advertises loyalty rewards such as 1% cashback in points for on-time repayment. Referral bonuses are also available to customers who introduce new borrowers to the platform.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.