Borrowers benefit from various loans offered by different lending institutions. However, repaying the credit has been a challenge for some credit beneficiaries. The study aimed at examining the relationship between financial preparedness and loan repayment among credit beneficiaries from lending financial institutions in Kenya. The study used secondary data, the 2019 Fin access Kenya Household Survey data. The relevant observations used in the study had 4760 respondents. The data was analyzed using SPSS 25. The study's correlation between the independent and dependent variables was investigated using descriptive statistics. The Chi- Square Tests were done to determine the significance of the association. The outcomes of the study demonstrated that financial preparedness is highly linked to loan payback, leading to the conclusion that financial preparedness has an impact on loan repayment. The findings therefore advise the household group to adopt proper financial preparedness such as putting money aside in case of emergencies that can be used in the event of a crisis, planning and budgeting to ensure proper use and good investment of the available resources, while avoiding risky activities such as gambling. Furthermore, the findings encourage lenders to provide and also promote educational information to their clients and potential clients on financial preparedness.