Several Mobile Loan Apps have suspended issuance of loans to individuals, following Central Bank of Kenya’s (CBK) directive to bar them from being third party credit information providers to Credit Reference Bureaus (CRBs).
Close to 100 mobile lenders, famously known as digital lenders suspended their operations, while others limited issuance of loans to few individuals or SMEs.
The move affected unregulated apps, while those affiliated to banks and other regulated institutions were spared.
This came as a blow to Kenyans who depended on the apps for survival, especially during the Covid-19 pandemic period when financial inflows for individuals and institutions have gone down.
Read: Mobile Lending Apps Silently Halt Operations As CBK Directive on CRBs Takes Effect
There are few mobile loan apps that are still offering loans, especially those under regulated institutions such as KCB-Mpesa, M-shwari, M-Co-op Cash, Timiza from Absa, Family Bank and overdraft facility Fuliza from M-pesa.
Two unregulated apps, Zenka and Tala, are still offering loans, but only to existing clients only.
Banks and Safaricom still account for 80 to 85 per cent of mobile lending in the country, while 15 to 20 per cent is left for unregulated apps such as Tala, Branch, Zenka, Okash and Opesa.
KCB-M-pesa was launched in March 2015, and currently charges interests rates of 7.5 percent per month, as compared to other mobile loan providers that charge at averagely 20 percent per month.
M-Shwari, a mobile savings and loans solution for M-Pesa customers was launched in November 2012 in conjuction with CBA Bank, now NCBA. The service charges a 7.35 percent interest rates on its loans.
Read: List Of Mobile Loan Apps That Have Been Barred From Accessing CRB Services
You can also used the M-Co-op Cash ash from Google playstore or dial *667# and link it with your business account at any Co-op Bank branch.
You can apply for a loan which is deposited in your MCo-opCash account, less a one-off appraisal fee of 3 percent of the loan amount applied for, commission of 1.083 percent of loan amount applied and 20 percent excise duty of the total commission charged. You can withdraw cash at any Co-op Bank ATM or Co-op Kwa Jirani Agent. You can also send the money direct to your Mpesa or someone else’s Mpesa.
Overdraft facility Fuliza was launched in January 2019 for M-Pesa users and can be accessed by using the USSD code #234# or the updated mySafaricom app. Once a customer signs up for Fuliza, an overdraft will be automatically applied in the case where they do not have enough funds in their wallet to complete a transaction.
The overdraft service is faclitated by NCBA Kenya and will attract an interest rate of 0.5% per day, with a facility term of up to 90 days.
Timiza and family bank can also be accessed through the respective bank apps.
In case one is blacklisted with any of the CRBs, they can get easy loans by attaching or selling their property, in case of an emergency.
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