Digital credit provider MyCredit Limited has secured a debt funding of $3 million (Sh460 million) from impact investment manager BlueOrchard for onward lending in the education sector.
The funding, it says, will support its strategic plan to offer affordable medium-term financing in the form of secured and unsecured loans to private schools for three years.
MyCredit says the institutions can borrow up to Sh5 million in secured funds for a maximum tenure of 36 months with a flexible payable mode while short-term borrowers can get up to Sh1 million in unsecured funds for up to 12 months.
The firm’s CEO Wangaruro Mbira said the company has disbursed 11,014 loans across the country with a total value of Sh7.9 billion over the past seven years and has 21 branches.
“We have over 10,500 customers living up to our mission of supporting businesses and families to achieve more financial freedom through offering tailor-made bridge finance solutions (loans) to Small and Medium Enterprises (SMEs), professionals, and civil servants,” said Mbira.
“We will be opening more branches gradually in all the 47 counties and commercial centres to be able to reach more entrepreneurs in the education sector.”
The funding deal comes months after MyCredit inked an agreement with global co-operative and social investor Oikocredit International in February which saw the Kenyan firm receive Sh325 million for onward lending to its small enterprise customers.
