It is now possible to access loans at a discounted rate of 2 per cent in a new deal between mobile operator Safaricom and KCB. The KCB-M-PESA Account will enable customers to get loans using their mobile phones.
The loans will be offered with a flexible repayment period ranging from one month to six months. In addition, the facility fee for the loan will start from as low as 2 per cent per month.
Customers will also have the option of two fixed savings options, a fixed deposit account and a target savings account. “This is a new frontier in the evolution of the mobile money journey for both institutions,” said KCB Group CEO Joshua Oigara.
In the last one year, KCB saw its customer M-PESA account transactions triple to Sh125 billion.
Mr Oigara revealed the volume of transactions has grown from 10,000 a day to 100,000.
M-shwari lends a minimum of Sh100 with the maximum dependent on each customer’s loan limit. Loans on M-shwari attract an interest of 7.5 per cent.
Mr Oigara further explained: “We have collated lessons from our experience as the leading bank in the region, and insights from the market to develop this proposition. “
Mobile technology has greatly transformed our lifestyles in the 21st century,” said Safaricom Chief Executive Officer, Bob Collymore. “Mobile technology has greatly transformed our lifestyles. It is increasingly making it more convenient for customers to pay utility bills, withdraw or deposit money in their bank accounts as well as borrow by the click of a button.”
Customers can now enjoy credit facilities from as low as Sh50 to as high as Sh1 million instantly on their mobile phones.
