, NAIROBI, Kenya, Mar 10 – KCB Group and Safaricom have launched a new mobile banking product that will enable customers get loans using their mobile phones and pay at a rate of 2 percent per month.
KCB-M-PESA Account loans will be offered with a repayment period ranging from one month to six months.
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 that will match up the best of what East Africa’s most successful mobile operator and leading bank have to offer,” KCB Group CEO Joshua Oigara said.
The customer can also save, place standing orders or make fixed deposits on their phones.
To access the service, customers will be required to dial *844#, accept the terms and conditions and proceed to save or borrow depending on their needs.
The customer’s loan limit will be determined by a number of factors including but not limited to, the amount of savings that the customer has, the customer’s usage of M-PESA, and their savings on other KCB platforms.
“Mobile technology has greatly transformed our lifestyles in the 21st century. 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,” said Safaricom CEO Bob Collymore.
Customers can now enjoy credit facilities from Sh50 to Sh1 million instantly on their mobile phones.
Safaricom and KCB Group entered into the strategic partnership in June, last year, and launched their first joint proposition, Biashar@Smart, which offers a suite of technology and financial solutions, geared at enabling SMEs to grow to the next level.