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Mwananchi Credit Accuses High Net Worth Clients Of Refusing To Pay Loans

Mwananchi Credit
Mwananchi Credit. [PHOTO/ COURTESY]

Mwananchi Credit has accused high net worth individuals and companies of borrowing monies with no intention of repaying loans.

In a statement to newsrooms, the micro-financier revealed that it was battling court cases, as a result of failure by such borrowers to service their loans.

“Mwananchi is one of the few Micro Finance Institutions that offer large sums of loans to single individuals. Because of this, a few wayward clients, most of them high net worth, have come to borrow monies from Mwananchi Credit with the sole intention of not repaying those monies. They have perfected the art of misusing our legal processes to buy time while in the meanwhile using media to blackmail us in the hope that they do not repay their loans. However, the fact that some of these matters are already in court limits our capacity to discuss them,” the lender said.

Read: Radio Host Jalang’o Lands Another Job As Mwananchi Credit Brand Ambassador

The lender said that some of the clients and competitors were using proxies in a smear campaign, after a fallout for failing to service loans.

“In case of defaulted loans, like any other financial institution, some penalties may be accrued. But as a matter of good faith, whenever the customer has shown the desire and commitment to repay their loans, we have always shown goodwill by waiving most of the penalties, in some cases as much as 100%. A combination of the above factors have contributed to the fast growth of Mwananchi Credit; a fact that is not lost on some of our competition, who are directly at the forefront of some of the false allegations via proxies,” added the company.

“While in the past we have opted to ignore these baseless allegations and rumours, we now feel that our detractors have used our silence to gain steam and propel those innuendos even further.”

Mwananchi Credit practices risk-based lending, lending people according to their risk factor with lower risk getting lower rates and higher risk being commensurately weighed. The lender charges interest rates between 1.67 to 3percent.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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