Commercial banks are institutions which accept deposits, make business loans, and offers related services. The concept of credit can be traced back in history and it was not appreciated until and after the Second World War when it was largely appreciated in Europe and later to Africa. In Africa the concept of credit was largely appreciated in the 50's when most banks started opening the credit sections and departments to give loans to white settlers. The history of banking in Kenya traces its roots at early European trade of East African Coast and in Zanzibar. Returns from loans comprise a significant percent of banks' income. Nonetheless, profits posted by banks listed at NSE differ greatly. Returns from loans comprise a significant percent of banks' income. Nonetheless, profit posted by banks listed at NSE differ greatly. This could be a result of factors that influence uptake of loans. However, since most banks operate in similar socio-economic environment , differences in institutional factors may help to explain the differences. Studies have shown that changes in wealth, expected inflation and government borrowing are key determinants of lending rates. However, the studies did not highlight how lending rates may impact on uptake of credit. In addition, internal factors of a bank such as the extent of adoption of technology may impact on the cost of processing the loans. This could also be transferred to customers who may be required to bear such costs. Most banks require collateral for secured loans and this is also likely to influence the kind of customers who take up such products that require collateral. However, it is not clear on how various institutional factors influence loan uptake from commercial banks. Although various aspects of of loans such as loan defaulting, effect of loans on customer and factors affecting accessibility to loans such as loans,it not clear on how various institutional factors influence loan uptake from commercial banks.This study sought to investigate various institutional factors that may influence the uptake of the product. The study specifically sought to establish the influence of interest rates,collateral requirements and loan processing costs on loan uptake. This study will beneficial to both policy makers in the Ministry of finance and to the management of banks. The study was guided by power and institutional theory. This study adopted a descriptive research design.The study targeted 11 commercial banks at NSE. The study used a census technique because the target population is less than 100. Thus, all 33 respondents were included in the study Both descriptive and inferential methods were used in data analysis. A Multiple regression model was used in this study. The significance of the model was tested by use of correlation model coefficient (R) and the coefficient of determination (R2) at 95% significance level. F-test was also conducted to test the significant and reliability of the developed model. The study established that there is no significance correlation between interest rate charged by banks and uptake of loans. It was also established that there is no significant correlation between loan processing costs charged by the banks and uptake of loans.The study however found out that there is a significant negative correlation between collateral requirement by banks and uptake of short term and long term loans. The study recommended that banks should strive to charge interest rates that do not impact on loan uptake to continue growing their revenues. It was also recommended that banks should continue charging loan processing costs that do not impact on loan uptake to continue growing their revenues. The study also recommended that banks should continue requesting collateral's to avoid defaulting that could negatively affect their revenues.