NAIROBI, Kenya, Apr 8 – Over 300,000 Okolea clientele are set to enjoy direct loans into their bank accounts from the loan app where previously its customers could only get their loans sent to their M-PESA wallets.
Okolea loan app is one of the credit enterprises that has been providing instant loans to Kenyans both for businesses and financial needs.
With the maximum amount of loan disbursed per person being Sh250,000, the M-PESA limit cap makes it hard for the Okolea customers to receive their loans seamlessly.
CEO Okolea Peter Muraya says the new venture will majorly be convenient for business customers.
“We created the banking option to solve this problem on top of giving our customers more choice regarding where they would want to receive their money. This is particularly useful to business people who use cheques to pay suppliers,” said Muraya.
Research by FSD Kenya says about 6.5 million Kenyans are digital borrowers to fund their basic needs as well as replenish stocks in small businesses.
Okolea has previously allowed their customers to borrow up to three times but within their assigned limit, a feature meant to encourage customers to only borrow what they need at a time.
Digital loans through mobile platforms has proved to be a way of increasing access to affordable credit.
This allows borrowers to be better equipped when responding to negative financial shocks often experienced in day to day activity.