Co-op Bank mo­bile app loans hit Sh8.7 bil­lion

FUNDS Lender says pro­cess­ing 1,000 re­quests daily with real-time de­liv­ery

Business Daily (Kenya) - - MONEY & MARKETS - David Herbling hdavid@ke.na­tion­media.com

Co-op­er­a­tive Bank says the num­ber of mo­bile loans it is pro­cess­ing daily dou­bled in the past year to 1,000 bids in the pe­riod to June 2017, high­light­ing Kenya’s grow­ing up­take of mo­bile-based lend­ing.

The lender at­trib­uted this to the ease and con­ve­nience of get­ting credit via the Mco-op Cash mo­bile app that has seen the av­er­age loan size on the plat­form grow to Sh19,000 from Sh12,800 in the half-year to June2016.

Co-op Bank group chief ex­ec­u­tive

Gideon Muriuki said it has so far is­sued cu­mu­la­tive loans worth Sh8.7 bil­lion through the M-co-op Cash plat­form since launch of the ap­pin­au­gust2014.

“The mo­bile loans are both af­ford­able and de­liv­ery is real-time, and ac­ces­si­ble via mo­bile phones ,” said mr muriuk ii nan in­ter­view.

“We are fo­cused pri­mar­ily on of­fer­ing ad­vances for our salaried cus­tomers and top-up loans for

our busi­ness cus­tomers with other loa nfa­cil­i­ties.”

M-co-op Cash dis­burses loans of be­tween Sh100 and Sh200,000 re­payable within a month, and is avail­able across all mo­bile money plat­forms such as M-pesa and Airtel­money.

Bank-backed lend­ing apps such as M-sh wari,Equi tel, and KCB Mp es a have greatly trans­formed how Kenyans ac­cess loans, as con­sumers no longer need ll eng thy pa­per­work, pledge col­lat­eral or un­dergo vet­ting by a mean look­ing credit of­fi­cer.

Other stand­alone apps such as Branch, Tala, Saida and Mombo Mo­bile, also is­sue short-term loans via mo­bile money and charge a pro­cess­ingfee.

M-co-op Cash, with 3.3 mil­lion reg­is­tered users, saw its cur­rent loan book nearly triple to Sh860 mil­lion as at June 2017 com­pared to Sh290 mil­lion the pre­vi­ous year.

Co-op bank said its mo­bile loans are charged the capped in­ter­est rate of 14 per­cent per an­num, or 1.16 per cent per month ,“with no ad­di­tional charges.”

Eq­uity levi es a loan ap­praisal fee of five per­cent of the credit ap­plied for­ever ye quit el loan, to­gether with the set in­ter­est rate.

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