In an effort to support customers sort their financial needs, the Co-operative Bank of Kenya (Co-op Bank) recently launched a new short-term loan that will enable customers to complete transactions when their funds are depleted.
The new loan, dubbed Kamilisha Transaction allows Co-op Bank customers to access instant top-ups of up to Sh100,000 depending on the assigned limit.
“Your limit is refreshed monthly based on your account activity, repayment history, and eligibility criteria. Good transaction patterns and timely repayments can help you qualify for higher limits,” Co-op said.
The limit is refreshed monthly based on a customer’s account activity, repayment history, and eligibility criteria.
The Co-op Bank overdraft facility is available to both individual retail customers and business customers who have an active Co-op Bank account and are registered on the mobile banking platform. To access the service, customers must opt in by dialing *667# or *557#, or via the lender’s mobile banking platform.
The service attracts a one-time access fee of 2 percent of the amount borrowed. Other charges are one-time Excise duty, daily maintenance fee of 0.2 percent per day on the outstanding balance, and an insurance fee of 0.034 per month.
For example, if you borrow Sh1,000.00, the following charges shall apply:
- An access fee of Sh20.00
- Excise duty of Sh4.00
- Insurance fee of Sh0.35
- A daily charge of Sh2.00 on any outstanding balance
“Excise duty is charged in accordance with applicable tax laws,” Co-op stated.
The access fee, excise duty and insurance are deducted immediately a customer uses the service, while the daily interest charge is calculated on the outstanding balance at the end of each day and recovered when funds are available in the borrower’s account.
Customers with other Co-op Bank loans such as Salary Advance & Business Plus can still access the service. However, Kamilisha is unavailable to borrowers with any E-Credit facility currently in arrears.
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How to Opt in to Kamilisha Transaction Loan
- Dial *667# or *557# o
- Select E-loans
- Select Opt-in
- Read & Accept terms and conditions here
- Confirm Opt-in – (The limit to be marked when the customer opts in and to be refreshed in 30 days.
Features
- Loan Limit from Ksh 1-Ksh 100,000
- Maximum of 30 days
- Salaried and Business customers
Requirements
- Open a salary and business account
- Register on the Co-op Bank App to access this service.
How to opt out
- Dial *667# or *557#
- Select E-loans
- Select Opt-out
- Confirm Opt-out
