NAIROBI, Kenya, May 13 – Asset financing lender Mwananchi Credit has unveiled a facility seeking to support customers adjust their loan repayment terms in light of disruptions caused by the coronavirus pandemic.
The Switch and Save loan product enables customers serving loans and unable to reach favourable terms with their lenders to transfer the credit facility to Mwananchi Credit, which takes it up under more favourable terms.
“We are coming in to offer the much needed relief to borrowers serving loans and in need of more cash,” says Mwananchi Credit CEO Dennis Mombo.
Customers who switch their loans to Mwananchi Credit will enjoy a 10 per cent` cash back on repayments, which is then used to top up their loans repayment. Besides, Switch and Save customers are allowed to pay back interest only for three months to allow them time to reorganize their finances.
The new product targets borrowers who have been hit by COVID-19 economic disruption after either losing their jobs or had their incomes reduced.
Mwananchi Credit is intervening to reset the secured loans to the original status, charging lower interest than the previous lenders, which gives borrowers not only breathing space but, more importantly, access to more cash.
“We have customized loans customized loans on a case by case basis,” Mombo says.
“If, say, a civil servant is serving a Sh1 million loan and paying Sh10,000 per month, we can take up the loan and reset it back to Sh1 million under easy-to-manage terms,” he adds.
He said Mwananchi Credit is reaching out to clients to understand their financial situations and find a mutual solution for genuine cases.
“It’s not good to maximize profit on the misfortunes of people like everyone is doing,” Mombo says.
“For us it’s time to give back to our customers. If we help them today they will support us in future.”