Relief to Digital Borrowers as Mobile Lenders Waive Late Repayment Fees

Mobile Finance Loans

Kenyans are recurrent borrower, and digital lending platforms have been at the heart of facilitating these transactions at a fee. Small to Medium entrepreneurs rely heavily on digital loans for capital to invest in their businesses so they can grow. In this time of COVID-19 pandemic, we have seen lenders go slow on borrowers in the name of supporting the government in cushioning the entrepreneurs and other Kenyans against the COVID-19.

Digital Lenders Association of Kenya (DLAK) have followed into the footsteps of these financial institutions and have agreed to waive the repayments fees for loans they have issued to Kenyans. This moves aims at cushioning their customers against this tough economic times which has directly affected their incomes and their abilities to repay these loans on time.

“The move will cushion the customers who are under distress, following the slowdown in the economy after disruptions to their day to day operations that could have had an effect on regular income flow. Customers are advised to seek more detailed information on the specific aspects of the waiver from their respective providers,” read the statement.

Members of the association have also promised to align with President Uhuru’s directive of suspension of Kenyans listed on CRB, whose loans fall due on April Ist. This measure by DLAK comes a day after Safaricom announced changed on its Mshwari loan services.

In a detailed statement, the telco giant addressed the most frequently asked questions regarding Mshwari loans ranging from repayment dates and additional fees for delayed payments during this COVID-19 outbreak. Among the new changes include an extended period for repayment of loans with a 30-day limit.