Technology has finally caught up with how borrowers access b finance. Several mobile and web-based apps have been rolled-out in the last two years, and they have become popular with borrowers. Kenyans are turning to these apps to grant them small and micro loans — banks, saccos, chamas and Shylocks are no longer their only options.
These mobile-based apps have features that are attractive to the general population: They allow you to borrow as little as Sh100 and up to Sh1 million. Interest rates are flexible and lower than banks, they range between seven to 15 per cent. No collateral is pledged and no paperwork is filed. Your loan limits and legibility to access bigger amounts is increased by a certain factor each time you repay a previous loan on time. The processing fee for these apps is lower than banks’. And, most importantly, cash is sent instantly and directly to your mobile phone.
