Co-op Bank mobile app loans hit Sh8.7 billion
FUNDS Lender says processing 1,000 requests daily with real-time delivery
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.