Mauritian firm's holiday loans target Kenyan merrymakers

A Mauritian hire purchase firm, Cim Financial Services, is seeking to cash in on the festive season by offering holidaymakers up to Sh350,000 loan.

The firm has signed a partnership with Vacay Holiday Deals, a travel agency.

Cim Financial Services, which launched Kenyan operations in May, said the partnership will enable middle-class travellers booking for holiday through Vacay get up to 70 per cent financing of their vacation costs through its mobile credit app, Aspira.

The loans, largely targeting the adventurous middle-class in formal employment, will attract a monthly interest of four percent repayable in six months.

Loan applicants will be expected to submit personal information, name, date of birth, current work status, income as well as the latest bank statements, pay-slip and M-Pesa statements to determine their credit worthiness.

The firm — which largely provides loans for purchase of electronics, homewares and furnishings — has taken advantage of increased leisure expenditure during the December holidays to expand its clientele.

"As a company, we would like to provide Kenyans with an opportunity to enjoy their holidays conveniently and yet have the peace of mind of paying for it later within six months without necessarily placing a huge financial burden during this festive season," Aspira managing director Yoeal Haile said in a statement.

Mr Haile said while most middle-class aspire to go to popular local and international tourist destinations on vacation during the Christmas period, some do not have adequate cash to cater for the expenses.