KCB is no longer offering three and six month loans on its mobile platform.
The bank is now offering only the one-month loans on the KCB M-Pesa platform, for which it is charging a monthly interest rate of 1.17 per cent plus a one-off 2.25 per cent negotiation fee levied across all its loan products. This fee also attracts a 10 per cent excise duty.
Borrowers previously had the option to pay back in one, three or six months, with the interest rate chargeable graduating downwards depending on the period.
Equity Bank has two options for its mobile loans, dubbed Eazzy, which is repaid within a month, and Eazzy-Plus, an instalment loan repaid over two to six months.
On the one month loan, Equity charges an appraisal fee of one per cent (that also attracts a 10 per cent excise duty), which is added to the interest that comes to no more than 1.17 per cent as per the legal limit.
The interest on the instalment loan on the Equity platform is levied on reducing balance.
Failure to settle the Equity loans on the due date results in the debt being rolled over as a fresh loan on the same terms as those of the original loan, meaning a customer is levied the fees afresh on the balance.
