Digital lending service provider Okolea now allows customers to borrow up to three times but within their assigned limit without paying their first loan.
This comes as the loan provider is looking to tap into the market share in the digital lending, which is now the leading source of credit in Kenya and that it is mostly used to finance working capital and day to day consumption needs.
Statistics indicate that Kenya has over six million online borrowers in different platforms.
“Through the okolea app, available on google play, users are now at a position to borrow responsibly following the developers major upgrade allowing users to have three different loans with different rates and duration,” reads a statement from the app management team.
Okolea was one of the first digital players to embrace the duplum rule ensuring interest for late payments does not exceed the principle borrowed.
“This is a testament that at Okolea we are in the business of helping people, not exploiting them,” says Mr Peter Muraya, CEO.
Okolea has also lowered its interest rates to a minimum 5% and a maximum 15% from its previous high of 20%.
“Okolea recognizes that having rates fixed per month is detrimental to the welfare of
the customer since some customers pay before the month ends. This has led to introduction of interest bands which depends on time repaid passing benefits to those who pay early,” adds Muraya.
The interest bands are 5% for those who pay within 2 days, 8% for one week repayments, 11% for two weeks, 13% for three weeks and 15% for one month.
“Okolea is now in the process of setting standards in the industry through features that seek to promote responsible lending and to protect consumers from exploitation. This will ensure that customers can continue to get access to working capital and emergency funds instantly through the ever improving okolea app,” concludes Muraya.
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